For More Information Contact:
Lance Robertson, 984-4716
Eugene Water & Electric Board

March 17, 2006

Commissioners to consider rate increases

Eugene Water & Electric Board commissioners will hold a public hearing March 21 to gather public comments regarding proposed increases in electric and water rates.

The hearing will be during the commissioners’ regular 7:30 p.m. meeting on Tuesday. It follows a similar hearing that was held in February. Commissioners are expected to make a decision whether to raise rates, and by how much, following the March 21 hearing. The new rates would be effective with May bills.

EWEB staff is proposing an overall electric rate increase of 5.8 percent and an average water rate increase of 9.3 percent. Residential customers would see a 7.4 percent electric rate increase and a 7.7 percent increase in water rates. General service and other types of customers would see increases above or below the average.

The last water rate increase was in 2004. EWEB lowered electric rates twice in 2005, by an average reduction of about 4 percent.

Higher debt payments are the primary reason for the electric rate increase. Other factors for the electric rate increase include higher Bonneville Power Administration wholesale energy costs, increased funding for renewable energy resources and higher internal costs. Higher internal costs, plus a more conservative estimate of expected water consumption and revenues, are driving the water rate increase.

EWEB has not raised electric rates specifically to cover higher operational costs since 2001, although rates have gone up due to higher energy costs.

The average residential customer using 1,050 kilowatt-hours of electricity per month would see his or her monthly bill increase by $5.94, to $83.48. However, with the 2005 electric rate decreases factored in, the average residential customer would see a net increase of $3.12 per month over November 2004 bills.

The monthly water bill for the average residential customer (9,000 gallons of usage) would increase by $1.10, to $15.23.

If the increases are approved, EWEB’s water rates will remain the second lowest among comparable Oregon water utilities, while electric rates will be slightly above the average for comparable Northwest utilities.

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