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March 16 , 2005
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EWEB lowers electric ratesThe Eugene Water & Electric Board has decreased electric rates. The 1.6 percent decrease, which was approved March 15 by EWEB commissioners, reduces the monthly bill by about $1.40 for a residential customer using 1,250 kilowatt-hours of electricity. The rate change is effective with May bills. It is the first electric rate decrease in 34 years. The decrease is the result of lower Bonneville Power Administration electricity costs. EWEB buys about 70 percent of its electricity from Bonneville, the federal power-marketing agency that supplies the Northwest with half of its energy. EWEB then provides the electricity to its 83,000 customers. Commissioners have adopted a general policy of passing on any increase or decrease in BPA power costs to customers. Bonneville currently changes its rates every six months. The BPA will be considering another rate change in October. Given the extremely low mountain snow pack and forecast for continued low precipitation, there is a greater chance that BPA will be raising rates this fall than lowering them. Like EWEB, the BPA relies on revenues from the sale of surplus power generated from hydroelectric turbines. When river levels are low, less power can be generated and sold. The Eugene Water & Electric Board is Oregon's largest public utility. -- end --
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