Steam utility transition project update
(As of Dec. 1, 2010, from Project Manager and EWEB Key Accounts Manager Mike Logan)
EWEB continues to urge existing steam customers to take action on the engineering reports you received
earlier this year outlining alternative fuel systems. With the June 1, 2012, targeted shutdown of EWEB's
steam system growing closer, it is becoming increasingly important to make this transition for
several reasons:
On Nov. 2, EWEB Commissioners voted to raise steam rates by an average of 25.8%, effective Dec. 1,
2010. The increase was driven by a continuing decline in revenues as more steam customers leave
the system. Nineteen buildings have converted to an alternative fuel since the
steam transition project was initiated in 2008. The customer base has shrunk from 124 buildings
to just 37 since 1985. Therefore, a much smaller number of customers must absorb the Steam
Utility operating costs.
The gap between affordable alternative fuels and steam heat continues to accelerate.
| Fuel type
| Average cost per square foot
|
| Steam heat (with 25.8% increase) |
$0.65 |
| High efficiency natural gas |
$0.34 |
| Electric heat pump |
$0.22 |
Many systems pay back within 10 years, and some even within 5 years. Energy bills could be cut in half
with natural gas, and by two-thirds with an electric heat pump. Your McKinstry engineering report confirms
the potential savings offered by these alternatives systems.
EWEB's contract with PeaceHealth expires at the end of 2011. Without this large contract, steam
system operating costs will be even higher than they are today. Remaining steam customers should be
prepared for even higher rates when PeaceHealth leaves the system.
Additionally, the state of Oregon's Business Energy Tax Credit expires on June 30, 2012. Therefore,
it is critical that remaining customers start the conversion process immediately to take advantage of
this tax credit.
We are ready to assist remaining steam customers with low-interest loans and energy efficiency funding.
We look forward to working with you soon as possible:
- Tom Williams, (541) 685-7160
- Steve Mangan, (541) 685-7376
- Mike Logan (541) 685-7108
Here's what two former steam customers had to say about converting to alternative fuels:
"The church's first heating bill of 2010 using natural gas is 74% lower than the previous year when
we used steam — and this is before the 25% steam rate increase!"
–Lee Sutton, First United Methodist Church
"I just got my first natural gas bill of the heating season and I want to share my good news. It is one-third
of what I paid using steam! With this natural gas bill, it's very clear the savings will more than
pay for the monthly loan payment. I wished I had switched years earlier."
Jerry Pike, Wilder Apartments