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John Mitchell Eugene Water & Electric Board 500 E. 4th Avenue Eugene OR 97401 541-341-8539

In a 3-1 vote at a special board meeting on Wednesday, May 21, the Eugene Water & Electric Board of Commissioners approved a motion to support House Bill 2821, which revises the state laws regulating generation, transmission and distribution of electric power.

Sponsored by the Committee on Power Deregulation, the bill sets a date of October 1, 2001 for the restructuring of the electric industry in the state of Oregon. Often called "retail access" or "consumer choice," the bill would allow retail electric customers to choose the company they want to provide their electricity.

While supporting the bill, the Board expressed grave concerns about the harmful impacts that retail access may have on EWEB customers. "We don't think retail access is in the best interests of our customers," concedes Board President Dorothy Anderson. "However, this bill has important protections for our customers in a restructured environment."

The Board, though skeptical about the potential pitfalls of retail access, nonetheless believes that HB 2821 goes the farthest so far in addressing their concerns. "Because of strong momentum in the Oregon legislature to mandate open access to retail customers around the state, EWEB has worked hard to ensure that any bill ultimately approved would have substantial protections for EWEB customers," says Anderson.

In particular, the bill addresses the thorny issue of the recovery of stranded costs or investments for utilities -- including the Bonneville Power Administration -- that invested in generation projects and system infrastructure.

"This ensures that all customers, not just a few, will pay for stranded investments," says Anderson.

The bill also:

• maintains investments in energy conservation, renewable energy resources and low- income energy services.
• gives customers a choice of "green power" supplies and energy efficient products.
• maintains EWEB's ability to recover the cost of investments made in the utility's system.
• protects customers from the failed Trojan nuclear plant costs.
• enables public utilities to compete on a level playing field with private industry, which will be important in a restructured environment.
• assures local control over rates and charges.

Commissioner Jeff Osanka cast the dissenting vote against the motion.

"We need to be careful to protect the ratepayers in the City of Eugene and statewide," says Osanka, "and I'm not convinced that this is for their good."

"I don't like this either," says Commissioner Susie Smith, "but EWEB supports the bill to the extent that it stays the same as shown here tonight."

In passing the motion to support HB 2821, the Board expresssed concern that the "window of opportunity" to affect the outcome of electric industry restructuring legislation may close if the bill fails to make it through the current session of the Oregon state legislature.