C.O. Irrigation District raising rates amid drought, assures costs will stay lowest in area

(Update: Adding video, comments from Central Oregon Irrigation District)

BEND, Ore. (KTVZ) -- While Central Oregon is drying up, the Central Oregon Irrigation District's water prices are going up.        

Craig Horrell, managing director for COID, said they’re increasing the price because their hydropower contracts are not being renewed.

“The board deliberated on this for three years on this rate increase hoping that we could find a solution,” Horrell said. 

Horrell said more companies are moving from hydropower to solar or wind=powered energy, and they’re not able to keep up with the prices.

“We’re not seeing the rates we had 30 years ago on these contracts when they were signed,” Horrell said. 

Horrell said COID was able to keep their prices low for so long, because the hydropower revenue could offset the maintenance costs.

Over the next four years, prices for land both over and under an acre will increase by close to $50 each year.

But Horrell still promises competitive pricing.

“With these rate increases, COID will still maintain the lowest cost of water in the basin,” Horrell said. 

Horrell said he understands how difficult the increase can be, especially during a drought.

"They’re not getting their water, they're not able to produce the crops that they have normally, they’re not getting the yields with the lesser water,” Horrell said. “The board took all that into consideration, and they just couldn’t wait any longer.”

However, he said, with low water levels, whether they deliver 60 percent or 100 percent of the water, the cost of labor is firm.

“It costs the same, if not more,” Horrell said. “Droughts tend to make our staff have to work harder.”

He said he and the board aren’t happy about the timing of this increase, but they will do what they have to.

“We will do our best to continue through the next year to make sure our patrons are getting their water, as much as they can get,” Horrell said. 

The district hopes to get more hydropower contracts in the future and eventually offset some of these costs once again.