EWEB is evaluating the long-term future of our electric service territory in the McKenzie Valley. As part of this process, we’ve opened a dialogue with Lane Electric Cooperative to explore whether changes to electric transmission and distribution service in the area could benefit customers and align with each utility’s strengths.
Community Conversation
Join General Managers Scott Coe (Lane Electric) and Frank Lawson (EWEB) for a discussion and Q&A on the project, including:
- An overview of Lane Electric’s service model and technology
- Factors being considered for customers and the community
- The decision process and timeline
Thursday, September 18, from 5:30 – 7:00 p.m.
Join us in person: McKenzie Fire & Rescue Center, Leaburg
Watch online: This meeting will be livestreamed. A recording will also be posted online following the event.
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About the study
The McKenzie Valley is a unique and important part of EWEB’s service area, but also one of the most rural and geographically challenging regions we serve. As a utility primarily structured to serve urban areas like Eugene, we believe it is responsible to assess whether different service models could offer long-term benefits.
EWEB and Lane Electric Cooperative are in the early stages of evaluating the future of electric transmission and distribution service territory in the McKenzie Valley. One possibility under the study is the potential realignment of some or all of EWEB’s service territory in the area to Lane Electric. This would not include generation assets such as the Leaburg and Walterville hydroelectric facilities.
The territory study encompasses approximately 3,000 EWEB customers between Thurston Road and Vida. Depending on the outcome of the study, these customers could become members of Lane Electric Cooperative, a member-owned rural electric distribution cooperative serving areas south and east of Eugene, including the McKenzie Valley.
The evaluation process is anticipated to continue through the end of 2025 and will include opportunities for public input to both boards. If a path forward emerges from this work, additional information will be shared well in advance of any changes.
Why might a service area realignment make sense?
EWEB and Lane Electric bring distinct advantages shaped by our respective business models. EWEB is structured to serve a dense, urban population, while Lane Electric is designed to meet the needs of rural, low-density areas like the McKenzie Valley.
Currently, only about 3% of EWEB’s customers live in the McKenzie Valley, but this area accounts for approximately 25% of our total service territory. This imbalance creates significant inefficiencies—both operational and financial—that impact EWEB’s entire customer base.
A 2020 Cost of Service Analysis (COSA) found that it costs 14% more to serve residential customers in the McKenzie Valley than we recover through rates. These higher costs stem from the area’s distance from EWEB’s urban core, increased vegetation management needs, and logistical challenges related to maintaining infrastructure in a rural setting.
Transitioning this territory to a rural-focused utility like Lane Electric could make more sense for everyone involved.
Aligning With Our Strategic Priorities
EWEB’s Strategic Plan emphasizes resiliency, efficiency, and smart infrastructure investment. A territory realignment supports these priorities in key ways:
- Infrastructure Resiliency: Narrowing our service footprint enables us to focus capital investments where they’re needed most—in our urban core, where aging infrastructure demands attention.
- Workforce Efficiency: A more concentrated service area reduces travel time and strain on field crews, improving responsiveness and safety.
- Financial Stability: Enhancing operational efficiency helps us stabilize rates and preserve financial flexibility in the face of rising infrastructure and climate resilience costs.
By focusing our resources where they can have the most impact, we can better serve our community while ensuring rural customers receive service from a utility better structured to meet their specific needs.
What are the benefits of a possible realignment?
Both EWEB and Lane Electric see potential operational and strategic benefits in a realignment.
- Both utilites provide safe and reliable services at comparable rates.
- For Eugene residents: Greater focus on urban infrastructure and resiliency, where 97% of EWEB customers live.
- For McKenzie Valley residents: Potential benefits of receiving service from a utility focused on rural areas, and the ability to vote for and elect representatives to the cooperative’s board of directors, offering a more direct form of local representation.
Process and timeline
EWEB and Lane Electric are committed to a careful, collaborative process, with a focus on creating long-term value for the communities we serve. The study is expected to continue through the end of 2025 and will involve a thorough assessment of key factors before any decisions are made.
What the Study Will Evaluate
- Infrastructure and Asset Valuation: Understanding the value of existing equipment and what a potential realignment would involve.
- Customer Experience: Assessing how a transition could impact service, reliability, and rates for customers in both service areas.
- Employee Considerations: Evaluating potential effects on utility staff and ensuring any changes support workforce resilience.
- Energy Supply Agreements: Reviewing impacts on existing power supply arrangements, such as those with the Bonneville Power Administration (BPA).
Public Input and Transparency
Throughout the process, there will be multiple opportunities for public input to both EWEB and Lane Electric boards. If the study results in a recommended path forward, we will share detailed information well in advance of any proposed changes.
Questions or feedback?
We want to hear from community members and ensure that diverse perspectives inform the study’s outcomes.
General questions for EWEB: Email PublicAffairs@eweb.org
EWEB customer input: Contact your elected Commissioner or the General Manager's office or provide comment at a public board meeting.
Lane Electric Cooperative members: Visit your cooperative's website for contact information
Q&A