Idaho Power serves more than 660,000 customers across Idaho and Oregon. The Boise-based utility is looking to sell its Oregon service territory, which represents 4% of its customers, to the Oregon Trail Electric Cooperative for $154 million by early 2027.
Courtesy of Idaho Power
Idaho’s largest utility is seeking a $154 million transfer of all of its Oregon service territory to a locally-owned utility based in Baker City.
Idaho Power is awaiting approval from state and federal regulators to sell its Oregon service territory to the Oregon Trail Electric Cooperative, which serves 60,000 customers in John Day, Burns and La Grande across 6,700 square miles. If the sale is approved, the transfer would add 20,000 former Idaho Power customers to the utility’s grid across 4,700 square miles in Malheur, Harney, Baker and Wallowa counties.
Idaho Power has served Eastern Oregon customers for more than a century, with those customers representing 4% of the company’s business.
Selling its Oregon service territory would allow the company to keep rates affordable for customers as the utility experiences an unprecedented energy demand, according to the company’s application to the Idaho Public Utilities Commission.
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The sale will not change any of Idaho Power’s customer rates, but new Oregon Trail Electric Cooperative customers will likely see a 5.7% increase to their rates to make up for the cost of the investment, according to the utility. Without the sale, Idaho Power would have needed to raise its general rate for Oregon customers by at least 17% to compensate for the costs of new company investments and inflation.
The Oregon Trail Electric Cooperative will buy nearly all of Idaho Power’s distribution lines, substations and equipment located in Oregon.
While Idaho Power would no longer serve Oregon retail electric customers, it would continue to own and operate some generation and transmission resources located in Oregon such the Boardman to Hemingway transmission line, which provides power to Idaho, Oregon and across the region.
The transfer is expected to close in early 2027.
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