For More Information Contact:
Lance Robertson, 984-4716
Eugene Water & Electric Board
Aug. 31, 2006
EWEB considers another decrease in electric rates
The Eugene Water & Electric Board may lower electric rates again.
If commissioners approve the 1.8 percent overall decrease in early October, it will mark the third time in the past two years that the board has lowered electric rates for the municipal utility’s 85,000 customers.
Commissioners on Tuesday night (Sept. 5, 7:30 p.m.) will conduct the first of two public hearings to gather public comments about the decrease proposed by staff. Another hearing will be held Oct. 3, also during the board’s regular meeting. The board will vote on the proposed rate decrease following the second public hearing.
In 2005, electric rates were lowered twice for a combined total of about 4 percent. It was the first time in more than 30 years that EWEB had lowered electric rates. However, electric charges were increased by an average of 5.8 percent in May of this year. When the three decreases are combined with the May increase, overall electric rates will have stayed relatively stable since the fall of 2004.
Residential electric rates would be lowered by 1.4 percent, or a reduction of $1.23 per month for the average customer using 1,050 kilowatt-hours of electricity, to $82.25 per month. Other non-residential customer classes would see rates decline between 1.05 percent and 2.07 percent.
Lower Bonneville Power Administration electricity costs are driving the most recent decrease, which would take effect in October (customers would see the new rates reflected in their November bills).
Commissioners have a policy of passing on to customers any increase or decrease in power costs whenever the BPA adjusts the price of wholesale power the federal agency sells to public utilities. EWEB gets about 70 percent of its electricity from Bonneville, so any cost adjustments by BPA have a direct impact on customers. In recent years, Bonneville has adjusted its rates every six months.