OTEC union talks set for August as utility eyes major expansion

Labor talks between Oregon Trail Electric Cooperative and the union representing about 40 workers were set for early August, adding pressure to a Baker City utility already facing major growth decisions and a 30-day strike notice from IBEW Local 125 linemen and other field workers.

For Baker County members, the dispute is more than a payroll issue. OTEC says it serves about 23,863 members and 32,825 meters across Baker, Grant, Harney and Union counties, with 3,039 miles of power lines spread over 6,734 square miles. The cooperative is headquartered in Baker City and also has offices in La Grande, John Day and Burns, so any strain on staffing would be felt first in line work, outage response and day-to-day service across a wide rural territory.

The bargaining comes as OTEC pursues a $154 million deal to take over Idaho Power’s Oregon service area. OTEC and Idaho Power announced the agreement on Feb. 19, 2026, and filed it with the Oregon Public Utility Commission on May 21. If regulators approve it, about 20,000 Idaho Power customers in Malheur, Harney, Baker and Wallowa counties would become OTEC member-owners, and the companies say they are seeking an early 2027 closing. The filing says OTEC would keep buying wholesale power from Idaho Power under a multi-year supply agreement.

Rates are part of the tension. Idaho Power said Oregon customers are expected to make up less than 3% of its total sales by 2030, and the filing says the company could likely need at least a 17% general rate increase in Oregon if the sale does not happen. The same filing says former Idaho Power customers would face about a 5.7% increase under OTEC if the transaction is approved. For families and businesses from Baker City to rural Harney County, those numbers make the contract talks and the utility sale part of the same conversation: who will answer the phone, restore the lights and pay for the next stretch of service.

OTEC has also been trimming other big plans. On July 2, the cooperative dropped its proposed purchase of PacifiCorp’s Wallowa County territory after four months of due diligence, a move that would have added about 5,500 customers. That leaves the Idaho Power transaction as the utility’s main expansion effort, while August labor talks will show whether OTEC can move into fall with stable staffing or a new layer of risk hanging over its crews and members.