For More Information Contact:
Joe Harwood, 541-685-7471
Eugene Water & Electric Board

Oct. 3, 2011

Bonneville power costs driving electric rate proposal

Eugene Water & Electric Board commissioners will hold the second of two public hearings on Tuesday, Oct. 4, to gather public comments about a proposed electric rate increase that would take effect on November bills. Tuesday’s regular Board meeting will start at 7:30 p.m. in the North Building at EWEB headquarters, 500 E. Fourth Ave.

Three primary factors are driving the proposed overall 5 percent rate increase.

The additional charges would partially offset wholesale energy cost increases by the Bonneville Power Administration. Bonneville, which supplies EWEB with about 65 percent of its electricity needs, is increasing wholesale rates this fall for its utility customers in the Northwest. EWEB commissioners have a general policy of passing on to customers any increase or decrease in Bonneville power costs.

Another contributing factor is that EWEB will receive less energy from Bonneville under a new contract that went into effect Oct. 1. Reduced power supply from Bonneville will decrease the amount of energy EWEB is able to sell on the wholesale market, which will reduce revenues. Revenues from those wholesale power sales are used to keep customer rates lower.

Other power market factors, such as recession-related low wholesale power prices that have reduced available revenues, also are contributing to the rate increase.

The effect of the proposed rate action would result in an increase of about $4.24 per month, or 4.7 percent, for the average residential customer. The rate change would be reflected in customers’ November bills.