For More Information Contact:
John Mitchell, 341-8539
Eugene Water & Electric Board

March 15 , 2007

Board to consider rate increases

The Eugene Water & Electric Board of Commissioners will hold two hearings on Tuesday, March 20, to gather public comments regarding proposed increases in water and windpower rates.

EWEB Commissioners are expected to vote on the proposed rate increases following the hearings. The hearings will be held during the commissioners’ regular board meeting, which begins at 7:30 p.m. in the North Building at EWEB, 500 E. Fourth Ave.

The water rate increase, if approved by the Board of Commissioners, would be effective with May bills. Residential customers would see an increase of approximately 8.6 percent, or $1.31 for the average residential customer using 9,000 gallons per month.

Even after the increase, the water bill for the average EWEB residential customer will remain the second lowest among 15 urban water districts in Oregon, at $16.54 per month.

The water rate increase would be used for additional capital improvements, to rebuild reserves and for general operational cost increases. The additional revenue needs were included in the 2007 budget approved by EWEB Commissioners in December, also following two public hearings.

EWEB Commissioners are also considering a rate increase for windpower subscriptions. Commissioners will be reviewing a proposed change in the structure, as well as the possibility of an increase in the rate. The proposed change, if enacted, would be the first since the program was initiated in 1999. 
 
The purpose of the rate structure change would be to bring windpower rates into alignment with the newly approved EWEB Greenpower rate structure. This alignment would facilitate the voluntary migration of customers from the current EWEB Windpower program to the new EWEB Greenpower program. Both programs would be priced at the same one-cent per kilowatt-hour premium above the normal electric rate.
 
Commissioners will also be reviewing the recent increases in the cost of production from the wind generating facility that supplies EWEB Windpower. Lower generation output and the loss of federal subsidies have increased the cost of production of EWEB Windpower from the Foote Creek Rim windpower project. Without a realignment of the windpower rate structure and migration of customers to the new program, a windpower rate adjustment of up to 25 percent might be ultimately required.

Approval of a realignment of windpower would produce an average increase in EWEB Windpower customer bills of 2.4 percent. But depending upon the level of each windpower customer's consumption and the interaction with tiered rates, the individual impact for 100 percent windpower customers may be as little as zero for small consumers to over 15 percent for very large residential windpower consumers.

One hundred percent commercial windpower customers would see increases ranging from 6 to 8 percent from this change. Both residential and commercial windpower customers will see smaller increases if they presently purchase less than 100 percent windpower. For example 50 percent windpower customers would see a bill increase one half as large as 100 percent windpower customers.
 
Any increase in the water or windpower rate will require approval by the EWEB Commissioners at their March 20 meeting.