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

Feb. 17, 2006

Commissioners to consider rate increases

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

The first hearing will be during the commissioners' regular 7:30 p.m. meeting on Tuesday, Feb. 21. The second hearing will be at the same time on Tuesday, March 21. 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 and increased internal operational costs, such as wages, supplies and materials, are the primary drivers for the electric rate increase. Other factors for the electric rate increase include higher Bonneville Power Administration wholesale energy costs and increased funding for renewable energy resources and energy conservation programs. The primary cost drivers for the water rate increase are higher internal costs and a more conservative recalculation of future water consumption and revenues.

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.