For More Information Contact:
Lance Robertson, 984-4716 or 954-7509 (cell)
Eugene Water & Electric Board

Hearing to Explore Potential Electric Rate Increase

The Eugene Water & Electric Board's elected commissioners will hold hearings Tuesday, April 15, related to electric rates.

The hearings will be held during the Board of Commissioners regular meeting, which begins at 7:30 p.m. in the Training Room of the North Building, 500 E. Fourth Ave.

One hearing will gather public comments about a possible 6 percent average increase in electric rates, effective with June bills. The increase, if approved, would recover additional costs resulting from wholesale energy price increases by the Bonneville Power Administration. EWEB's Bonneville-related power costs have risen by $10 million since October 2002, and the BPA has announced it intends to increase wholesale electricity rates by another 15 percent in October.

Residential rates would increase an average of 5 percent, if approved by commissioners. The increase would add about $4.40 to the average residential customer's monthly bill.

However, a rate increase in June is not certain. On April 1, Commissioners made $10 million in budget cuts and one-time cost savings to help balance EWEB's 2003 budget in an attempt to avoid a rate increase in June. With Bonneville expected to raise rates again in October, commissioners face a decision about whether to raise rates in June or later in the year to cover those additional BPA costs.

The budget cuts include a pay freeze, reducing the work force by six to 10 positions, cutting funding for conservation and low-income assistance programs, reducing tree-trimming services and reducing the hours EWEB's headquarters building is open to the public.

The second hearing on April 15 is to gather comments about a proposed change in the electric rate structure for residential customers. EWEB currently has a "tiered" rate structure for residential customers, in which the rate per kilowatt-hour increases as monthly consumption rises. The proposal being considered is for a "flat" rate, in which customers would pay the same per-kilowatt-hour rate for all consumption.

The board held similar hearings on March 18.

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