Idaho Power has struck a deal to sell its Eastern Oregon service territory to Oregon Trail Electric Cooperative, a utility based in Baker City that currently serves 60,000 customers across a 6,700-square-mile region in central and eastern Oregon.
The transaction, valued at $154 million, would transfer Idaho Power’s distribution network—including nearly all lines, substations, and equipment—to Oregon Trail Electric Cooperative. The sale encompasses service areas in Malheur, Harney, Baker, and Wallowa counties, adding approximately 20,000 former Idaho Power customers across 4,700 additional square miles. Idaho Power has maintained operations in Eastern Oregon for more than a century, though the region represents only 4 percent of the utility’s overall customer base.
The deal hinges on approval from state and federal regulators, with closure expected in early 2027. Idaho Power would retain ownership and operation of its generation and transmission resources in Oregon, including the Boardman to Hemingway transmission line that connects the region to the broader grid.
Rate Impact on Customers
The proposed sale carries contrasting implications for the two customer bases affected. Idaho Power rates for its remaining Oregon customers would remain unchanged as a result of the transaction. However, the roughly 20,000 customers transferring to Oregon Trail Electric Cooperative face a different scenario: they would likely experience a 5.7 percent rate increase under the new cooperative’s management.
That increase, while notable, reflects a narrower burden than customers would shoulder under the alternative. Without the sale, Idaho Power indicated it would have raised rates for its Oregon customers by at least 17 percent—nearly triple the increase Oregon Trail Electric Cooperative customers are expected to absorb.
Strategic Rationale
The divestiture signals Idaho Power’s strategic realignment toward its core service area in Idaho and neighboring regions where operational efficiency and economies of scale are more readily achievable. Oregon Trail Electric Cooperative’s commitment to assume the distribution operations suggests the cooperative views the acquisition as consistent with its service mission in rural eastern Oregon.
The timing of the sale also reflects broader trends in the utility industry, where regional utilities are reassessing service territories and operational priorities amid shifting energy demands. Idaho’s expanding nuclear development initiatives, including work at Idaho National Laboratory with partners like Nvidia to accelerate nuclear advancement, underscore how major utilities are positioning themselves for long-term infrastructure investments that demand financial flexibility.
What Comes Next
Regulatory approval processes in both Oregon and at the federal level will determine the timeline for closing the sale. Stakeholders in affected counties should monitor public comment periods and regulatory filings as the approval process unfolds. Once finalized in early 2027, the transition will mark a significant shift in utility governance for Eastern Oregon communities that have relied on Idaho Power service for generations.