Committed to Reliability
Dear Members,
Like many other cooperatives, we are keeping a close eye on what is driving the rising cost of power. Changes in wholesale power, labor, insurance, and materials directly affect the bills our members receive and the service we rely on every day.
Despite these cost pressures, West Oregon Electric Cooperative (WOEC) has been able to keep rate adjustments modest. Since 2020, our annual increases have remained between 3% and 6%. Residential electricity rates for large investor-owned utilities in Oregon have increased by roughly 50% over the past 5 years. This relative stability reflects WOEC’s commitment to careful cost management and efficiency.
Despite our efforts to hold the line, the costs we face continue to rise. Recently, Bonneville Power Administration—which supplies WOEC with clean, carbon-free hydropower—implemented new rates effective October 1. BPA customers will see nearly a 19% increase in power and transmission services over this 3-year rate period. These changes represent a significant increase in our wholesale power costs at a time when many other expenses are also increasing.
In addition to wholesale power, WOEC is experiencing sharp increases in other areas critical to providing safe and reliable service. Much of our work is labor-intensive and requires a highly trained workforce available 24/7 to maintain the system and respond to outages. Equipment and material costs have also risen dramatically. Prices for power transformers have increased 60% to 80% since 2020, while poles, primary wire, and other distribution system components have increased by 25% or more. Supply-chain disruptions and extended lead times have further complicated planning and budgeting. Wildfire-related insurance premiums and mitigation requirements continue to rise as well, adding another layer of cost in our region.
Given these combined pressures, a rate adjustment in 2026 is necessary to keep the cooperative financially strong and able to maintain reliable service. The overall increase will be approximately 3.84%, though the exact impact will vary based on individual use. While this is a modest adjustment, additional increases are likely in future years as costs continue to rise. To lessen the impact on our members, we plan to implement gradual adjustments over time while continuing to control expenses.
Official notice of the rate adjustment will be mailed to all members and will include directions to our website, where detailed information will be available about what is changing and how it may affect you.
As a not-for-profit, member-owned cooperative, WOEC operates at cost. Every dollar collected is reinvested into providing you with safe and reliable power. We understand rate changes are never welcome, and we do not take them lightly. We remain committed to managing costs, operating efficiently, and making thoughtful investments that support safety and reliability while keeping rates as reasonable as possible.
Thank you,
General Manager Billi Kohler