ELGIN – Oregon Trail Electric Consumers Cooperative (OTECC) announced a cut in rates for industrial customers at the Oct. 22 timber discussions hosted here by Rep. Greg Walden.

OTECC said industrial class electric rates will decrease by 7.5 percent, effective Nov. 1.

In light of the current economic situation – nationally and in Eastern Oregon – OTECC’s board of directors held an emergency meeting to consider the impact of rates on its industrial members. A recent Cost of Service Study conducted by the National Rural Utilities Cooperative Finance Corporation (NRUCFC) supported the rate decrease for the industrial rate class. This rate decrease aligns rates with cost of service, according to Werner Buehler, OTECC general manager.

“OTECC has experienced diminishing industrial electric loads in recent years, and as a local organization focused on the viability of the local economies this has been a concern. Industrial consumers like Boise Cascade are generally large employers with good paying jobs that our communities can ill afford to lose,” he said.

As a result of past co-gen contracts OTECC was required to purchase expensive “above market-priced” power which, until their recent expiration, made it unreasonable to decrease rates, he said.

“The economics simply did not dictate that we could lower rates before now,” said Buehler.

A recent Residential Member Satisfaction Survey conducted by the National Rural Electric Cooperative Association (NRECA) also indicated that a majority of OTECC members were willing to support cash for economic development. Although this rate decrease is not a direct cash contribution, the board felt it is the first step in an economic development process.

“It is very important that we do everything we can to keep our industrial base healthy. If the industrial base should continue to decline the impact to the local economies and electric rates to other rate classes would be less than desirable,” said Buehler.

This rate decrease to the industrial class comes on the heels of a 0.6 percent rate reduction reflected in the Power Cost Adjustment (PCA) for all members, effective Oct. 1.

“The ability of the Board to react to the current economic climate, the cost of service study, and the needs and wishes of its members is what makes a non-profit member owned cooperative so unique,” said Buehler. “At a time when energy costs are rising, the economic future is uncertain, and people are worried about jobs, it’s great to be able to react prudently.”

The announcement came as workers, mill representatives, county officials and others met with Forest Service officials and Walden to talk about declining timber supplies and the dire economic situation facing communities in Northeastern Oregon. About 140 people attended that meeting to introduce the region’s issues to the Forest Service’s Region 6 forester, Mary Wagner. Watch this website and the Oct. 29 Blue Mountain Eagle for more details on the meeting.