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

Sept. 4, 2007

Commissioners to consider water capital plan

Eugene Water & Electric Board commissioners on Tuesday night (Sept. 4) will consider approval of a 10-year water capital plan that would increase funding for maintaining, replacing and expanding the city’s water system.

The capital plan calls for almost $130 million in spending over the next 10 years to address an aging water system that is in need of new pipes, reservoirs, expansion of the water-treatment plant, and other capital improvements.

The work will require the Board to increase water rates to ensure adequate funding to complete the projects contained in the plan. In July, commissioners expressed support for the capital plan and favored a rate-funding schedule that would raise water rates by about 20 percent in 2008, followed by single-digit rate increases in each of the next nine years.

The capital plan is a road map for funding improvements. Specific projects would be included in each year’s budget, which is subject to public hearings in November and December and a separate vote by the Board of Commissioners.

A 20 percent water rate increase would add about $3 to the average residential customer’s monthly bill. EWEB customers already enjoy some of the lowest water costs in Oregon, and would continue to do so even with a double-digit rate increase. A residential customer using 9,000 gallons per month currently pays only $16.54 for water, compared to nearly $26 for the same amount of water in Salem and more than $30 per month in Portland.

EWEB is not alone in its need to address an “aging” water system. The U.S. Environmental Protection Agency estimates that water utilities nationwide need to spend almost $300 billion to bring water systems up to date.

Also on Tuesday, commissioners will consider and vote on a similar capital plan for the electric utility. A 2004 electric rate increase nearly doubled the amount of revenues available to improve and maintain the electric system.

The Board will discuss the capital plans during a work session, which begins at 5:30 p.m., and then vote on the electric and water plans during the Board’s regular 7:30 p.m. meeting in the Community Room of EWEB’s North Building, 500 E. Fourth Ave.