February 6, 2001 For More Information, Contact: EWEB's External Communications Coordinator EWEB Commissioners Postpone Electric Rate Increase Decision Tonight, the Eugene Water & Electric Board (EWEB) of Commissioners postponed its decision on a proposed electric rate change that would have increased customer electric bills by an average of 15 percent beginning with March bills. The Board will revisit the issue again in March. The utility had proposed the increase to cover drastically rising costs for the power it purchases for customers. The Board was considering two ways of applying this rate increase. The first, a “flat” increase would have increased each kilowatt hour by $.006. The second approach utilized an “inverted” rate structure that would charge residences more for power used over a certain amount. Over 30 EWEB customers signed up to testify at a public hearing on the proposal increase. Customer comments reflected a diversity of opinions on the need for a rate increase and the best way to apply it. Support for the inverted rate was slightly higher. The combination of customer input and news from utility staff that the financial condition of the utility had improved in December and January, prompted the Board to postpone its decision. Lower than anticipated retail loads in January due to mild weather and enhanced conservation, as well as power sales of the electricity not needed by the community, produced an improved financial condition in January. This provided the Board with the flexibility to postpone a decision on the rate increase. It is most likely the Board will further discuss the situation and necessary rate increase at its March 6 meeting. In the meantime, staff will continue to analyze the rate proposal. -30-