Idaho Power is selling its entire Oregon service area to the Oregon Trail Electric Cooperative for $154 million, a move that will transfer management of Eastern Oregon’s electrical grid to the Baker City-based utility while keeping generation and transmission assets under Idaho Power’s control.

The transaction will add roughly 20,000 customers across 4,700 square miles in Malheur, Harney, Baker and Wallowa counties to Oregon Trail Electric Cooperative’s existing customer base of 60,000. The cooperative currently serves parts of John Day, Burns and La Grande across a 6,700-square-mile territory.

Idaho Power has operated in Eastern Oregon for more than a century. The region now represents only 4% of the company’s overall business, making it a logical candidate for divestment as utilities increasingly focus on core service areas.

Under the agreement, Oregon Trail Electric Cooperative will acquire nearly all distribution lines, substations and equipment Idaho Power owns in Oregon. Idaho Power will retain ownership and operation of its generation and transmission resources in the state, including the Boardman to Hemingway transmission line, which serves Idaho, Oregon and the broader region.

The financial picture differs sharply for existing customers depending on which side of the transaction they fall. New Oregon Trail Electric Cooperative customers—the former Idaho Power clients—face a 5.7% rate increase. Without the sale, Idaho Power would have raised rates for those same customers by at least 17%, according to the utility.

Notably, the sale will not affect rates for Idaho Power customers in Idaho.

The transaction requires approval from state and federal regulators before it can close. Idaho Power expects the deal to finalize in early 2027. The sale represents a strategic realignment in a region where transmission crews have increasingly shifted toward wildfire defense along the Oregon-Idaho border, reflecting evolving priorities for utilities managing infrastructure across fire-prone landscapes.

For Oregon Trail Electric Cooperative, the acquisition represents significant expansion into new territory and customer base, positioning the cooperative to serve a broader swath of Eastern Oregon’s rural and remote communities. The cooperative model typically emphasizes local control and member involvement in utility operations, a structure that may appeal to customers transitioning from a large investor-owned utility.