Idaho Power Oregon service territory sale

Idaho Power has proposed a $154 million sale of its Oregon distribution system to the Oregon Trail Electric Cooperative (OTEC). The transaction would transfer approximately 20,000 residential, commercial, and industrial customers across Malheur, Harney, Baker, and Wallowa counties to the cooperative.

If the deal is approved by state and federal regulators, OTEC would acquire nearly all of Idaho Power’s distribution lines, substations, and equipment in Oregon. Under the proposed arrangement, OTEC would purchase wholesale energy from Idaho Power. While Idaho Power would exit the Oregon retail electric market, it would maintain ownership and operation of certain generation and transmission facilities in the state.

Idaho Power stated the divestment is intended to help maintain affordable rates, noting that without the sale, Oregon customers could face rate increases of at least 17% due to inflation and new investments. Conversely, OTEC anticipates its customers may see a 5.7% rate increase to cover the costs of the investment. The Oregon Public Utility Commission is seeking public input, with a decision requested by February 20, 2027, and an expected closing in early 2027.

The planned exit from Eastern Oregon is viewed as a potential economic setback for the ‘Greater Idaho’ movement, which seeks to shift several eastern Oregon counties to Idaho’s jurisdiction. The utility’s departure marks the loss of a substantial organizational link between the two states, as Idaho Power currently serves roughly 3% to 4% of its total customer base in these counties.