Related News
Related News
-
EWEB General Manager Delivers 2024 State of the Utility
General Manager Frank Lawson delivered his address at the March 5 public Board of Commissioners meeting
Find Out More -
State of the McKenzie Watershed
EWEB’s Drinking Water Source Protection (DWSP) team says the McKenzie River continues to be an excellent source for drinking water.
Find Out More -
EWEB crews focusing on restoring electric service for Hayden Bridge Water Filtration Plant
With more ice forecasted for Tuesday, all EWEB crews are in the field assessing outages and restoring power.
Find Out More -
Leaburg Decommissioning Action Plan
Plan details next steps through regulatory processes to begin dismantling Leaburg Dam by 2032.
Find Out More -
What’s ahead in 2024: General manager’s message to EWEB customer-owners
At the start of the new year, we back at accomplishments from 2023 and look ahead at what's to come in 2024.
Find Out More -
Start the New Year saving money with energy saving tips
We know that saving money is important to our customers. Using energy and water wisely is a great way to reduce your monthly utility bill, even as the costs of electricity and water rise. EWEB has several steps you can take to reduce your usage and even make your home feel more comfortable.
Find Out More -
EWEB 2023 year in review
In 2023, EWEB invested in our community with grants, rebates and an array of other programs and measures aimed at fulfilling our core values of safety, reliability, affordability, environmental responsibility and community/culture.
Find Out More -
EWEB Recognized with Excellence in Communications Awards from American Public Power Association
We are proud to have been recognized with two Excellence in Public Power Communications Awards for 2023 from the American Public Power Association (APPA).
Find Out More -
Let's talk turkey. If a disaster strikes, is your family ready?
Many of us avoid discussing politics over the dinner table in the spirit of family peace and harmony. But here's a topic that can bring everyone together: emergency preparedness.
Find Out More -
EWEB To Hold First of Two Public Hearings on Proposed 2024 Budget and Prices
At the Nov. 7 Board of Commissioners meeting, EWEB staff will present a proposed budget that includes rate increases necessary to support utility operations and make needed infrastructure investments.
Find Out More -
EWEB now offering a Smart Thermostat rebate program
EWEB is excited to announce a new residential rebate program to provide electric customers with free or greatly discounted Smart Thermostats to customers whose primary source of heating is from an electric forced-air furnace or heat pump.
Find Out More -
Your EWEB Rates at Work: Investing Today for a Resilient Tomorrow
For more than a century, EWEB has planned, built, and maintained the systems that deliver safe, reliable, and environmentally responsible power and water to Eugene homes and businesses.
Find Out More -
Have an energy efficient and water conscious holiday season
The holiday season is officially upon us. Whether you are celebrating a special holiday or just sharing a meal with close friends and family, hosting can cause some unexpected energy and water usage increases – resulting in a higher utility bill. We’ve prepared some tips on how you can save energy and water this holiday season.
Find Out More -
River Road Substation returns to service after infrastructure upgrades
Supply chain shortages and proactive infrastructure investments, including constructing seismic foundations and implementing control modernization, have played a role in the substation's return-to-service timeline.
Find Out More -
Public Power Week Poster Contest Winners 2023
The results are in! View the winning posters from EWEB's 2023 Public Power Week Poster Contest.
Find Out More - Show More
EWEB Proposing to Eliminate Higher-Cost Residential Electric Charge
August 21, 2018
EWEB Commissioners in September will consider eliminating the second, higher-cost residential electric consumption tier and replacing it with a single flat price.
The utility currently assesses a consumption charge of about 6 cents per kilowatt hour for the first 800 kilowatt hours used by a customer. Once monthly usage goes above 800 kilowatt hours with the current structure, customers move into the second energy consumption tier at a kilowatt-hour price of 7.5 cents.
Under the price reform proposal, EWEB would eliminate that second tier price and charge all residential customers a flat price of 6.5 cents a kilowatt hour.
EWEB first adopted tiered pricing in 2003, following the volatile West Coast energy crisis that caused wholesale electricity prices to spike, and forced the utility to make expensive market purchases to meet customer demand. That tiered pricing structure no longer reflects our true cost for power. With current market conditions, we typically don't have to pay more for additional power, so we shouldn't pass nonexistent higher costs to our customers.
There are many good reasons to make this change.
Eliminating the higher consumption tier and going with a single residential price will stabilize bills year round, making it easier and more predictable for fixed-income customers to plan and budget. In addition, a single residential consumption price will help alleviate the "sticker shock" during the winter heating season when more than 60 percent of customers move into the higher-priced consumption tier. That second tier price effectively acts as a "heating penalty" for the majority of customers.
Another benefit to setting a flat consumption rate is that it will help incentivize electrification, allow EWEB to showcase its virtually carbon-free power portfolio and help the utility be more competitive with natural gas.
Plus, the second tier is invisible to customers, who don't know when they go above the 800 kWh threshold until they get their bill. Charging a slightly higher rate for winter heating is not a particularly effective conservation price signal or behavior motivator.
A more effective strategy to encourage conservation is through direct incentives such as rebates and loans for efficient heating/cooling systems and weatherization projects. EWEB continues to invest in conservation programs, and increased the 2018 energy efficiency budget by $250,000.
While low energy use customers will realize a marginal price increase of about a half-cent per kilowatt hour under this proposal, most customers will see lower bills during the heating season with the single flat rate. Based on consumption levels, some customers may see bills increase by $1 to $4 a month. The table below shows the difference in monthly expenses for a lower usage customer compared to a more typical customer using electric heating.
Average Monthly Use | Current Electric Price | Proposed Electric Price |
750 kWh | $84.79 | 88.69 |
1500 kWh | 159.49 | 156.88 |
It's important to note that low energy users do not necessarily equate to low income customers, as household size and heating systems are more indicative of energy consumption than income.
We remain committed to affordability of our products and services. 2019 will mark the fourth year in a row with no general increases to our electric prices. Commissioners and staff are also working on plans to restructure and reallocate low-income bill assistance and energy efficiency programs to ensure the highest benefit to our customers in need. We believe these tactics will prove more effective at helping customers reduce their bills while conserving energy compared with retaining arbitrary consumption tiers.
Before moving forward with this proposal, EWEB organized a Customer Pricing Committee to study different options to help make structural reforms to the manner in which the utility recovers costs. The committee recommended a gradual approach to these reforms, and endorsed the elimination of the second pricing tier.
Many utilities are moving to fewer tiers or outright flat rates in order to stabilize their financial positions as they prepare for a future where they cannot rely on the old model of consumption growth to meet the rising costs of delivering power to customer homes and businesses.
This incremental step will help position EWEB and our customers for a financially stable future given the fundamental and dynamic shifts taking place in the electric utility industry.