In a recent meeting of the Oregon State Legislature's House Committee on Agriculture, Land Use, Natural Resources, and Water, significant concerns were raised regarding the future of irrigation and electricity supply in Harney County. General Manager of Harney Electric Cooperative, who oversees a vast territory comparable to the size of West Virginia, highlighted the challenges faced by rural utilities in maintaining reliable and affordable electricity for their members, primarily irrigators.
Harney Electric serves approximately 12,000 members across five counties in Oregon and parts of Nevada, with a staggering 68.25% of its revenue derived from irrigation sales. The cooperative's ability to provide power is critical, as many local farmers rely on electricity to pump water for irrigation. However, recent regulatory changes and rising costs have put immense pressure on the cooperative's operations. The General Manager noted that a 17% rate increase implemented in January was the largest in over two decades, driven by escalating costs from the Bonneville Power Administration and inflation.
The meeting underscored the potential impact of proposed regulations that could lead to the shutdown of irrigation wells, which would drastically reduce the cooperative's margins. The General Manager warned that if 38% of irrigation were to be cut off, residential power rates could skyrocket, potentially doubling monthly bills for households. This scenario poses a dire threat not only to the cooperative's financial stability but also to the local economy, which has already seen the closure of several businesses.
The General Manager urged support for House Bill 3800, emphasizing the need for a collaborative solution to address the challenges posed by state regulations. He expressed frustration over past assurances from the Oregon Water Resources Department (OWRD) regarding the stability of existing wells, which led to significant investments in infrastructure that may now be jeopardized.
As the committee continues to deliberate on these pressing issues, the future of agriculture and electricity supply in Harney County hangs in the balance, highlighting the intricate relationship between regulatory decisions and community livelihoods. The outcome of these discussions will be crucial for the region's economic health and the sustainability of its agricultural practices.