FOR MORE INFORMATION CONTACT:

Marty Douglass Eugene Water & Electric Board 500 E. 4th Avenue Eugene OR 97401 541- 341-1879 E-Mail Marty Douglass

Jeff Ziller Oregon Department of Fish & Wildlife 3150 East Main Street Springfield, OR 97478 541-726-3515

EWEB'S LEABURG, WALTERVILLE HYDROELECTRIC PROJECTS RELICENSED FOR 40 YEARS -- ENSURING LONG-TERM POWER SUPPLY AT LOW COSTS

The federal government has relicensed Eugene Water & Electric Board's (EWEB) Walterville and Leaburg Hydroelectric Projects, allowing the public utility to operate the McKenzie River facilities for 40 more years.

The license requires that EWEB make significant changes and improvements to the projects and their operations. Among other things, EWEB will install a state-of-the-art fish screen to prevent migrating salmon from entering the Walterville power canal. Also, minimum river flows in the project areas have been increased to 1,000 cubic feet per second (cfs), although EWEB has voluntarily observed those flow levels for several years. Previously, flows were approximately 500 cfs. These and a host of other projects will cost the utility over $12 million.

Despite these costs, the license ultimately provides EWEB and its customers with stability in terms of power supply and power cost, according to Gale Banry, EWEB Energy Resource Projects Manager.

The cost of electricity from the two projects will increase because of the new requirements, but the cost of the power will still be much less than if the utility were to buy the energy on the open market, Banry said. However, the increased cost of this power will not increase electric rates, he added.

The licensing project began in 1988 and included extensive public involvement. "We believe that the open participation and contribution by the public and agencies was beneficial and central to the success of the relicensing project. That involvement helped us balance the needs of many groups," said Banry.

To receive its license renewal, EWEB had to provide the Federal Energy Regulatory Commission (FERC) with a comprehensive plan addressing the environmental and recreational impacts of its projects and ways in which the utility would mitigate or offset those impacts.

Electric generation facilities are generally licensed for 30-50 year periods. It is common for the process to take more than a decade.

The Walterville and Leaburg projects account for six percent of Eugene's power supply. The Walterville Hydroelectric Project was built in 1911 and the Leaburg Hydroelectric Project was built in 1930.