EWEB and Lane Electric Cooperative have officially signed agreements for EWEB to sell our electric service territory in the McKenzie Valley to Lane Electric. The formalized agreements mark a shift from evaluation to the detailed planning and operational work required to complete the transition. We are targeting May 1, 2026 for completion of the service transition.
Next steps
Over the coming months, EWEB and Lane Electric will work closely together on activities such as final meter reads, transferring customer accounts and billing information, and coordinating system and service details.
EWEB and Lane Electric will continue to share updates through mail, email, and our websites as the transition date approaches.
To make sure you receive the latest information, please make sure your contact information with EWEB is up-to-date by logging in to our customer portal or contacting our Customer Service team.
To help address member questions, Lane Electric plans to host a series of new customer meetings in the McKenzie area starting in March.
News and updates
February 19, 2026: The Oregon Public Utility Commission (PUC) has acknowledged the joint application submitted by EWEB and Lane Electric Cooperative to transfer electric service territory in the affected area. As part of its review process, the PUC has opened a public comment period. Community members may submit comments directly to the PUC as it considers the application.
This filing represents a procedural step in the regulatory review process. No changes to electric service are occurring at this time, and customers do not need to take any action.
Any members of the public wishing to comment on the EUGENE WATER & ELECTRIC BOARD and LANE ELECTRIC COOPERATIVE Joint Application for Approval of Territory Allocation Agreement can do so at https://apps.puc.state.or.us/docketpubliccomment?DocketID=24932.
January 29, 2025: EWEB and Lane Electric Cooperative have reached an important milestone in transitioning electric service from EWEB to Lane Electric in the McKenzie Valley. The two utilities have officially signed agreements for EWEB to sell our electric service territory in the McKenzie Valley to Lane Electric. The formalized agreements mark a shift from evaluation to the detailed planning and operational work required to complete the transition. The utilities are targeting May 1, 2026, for completion of the service transition.
Until the transfer is finalized, EWEB will continue to provide electric service to our McKenzie Valley customers as usual. Once the transition is complete, those customers will become members of Lane Electric Cooperative.
More details:
Why does 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.
As part of EWEB’s budget and rate-setting process, a cost-of-service analysis found that the cost of providing electric service in the McKenzie Valley is about 21% higher than the revenue currently collected from that area. 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.
Additionally, because EWEB customers in the McKenzie Valley live outside Eugene city limits, they do not have the ability to vote for an elected representative on the utility Board.
Transitioning this territory to a rural-focused utility like Lane Electric makes 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 realignment?
Both EWEB and Lane Electric see operational and strategic benefits in a realignment.
- Both utilities 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: 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.
How to get more information
EWEB and Lane Electric will continue to share updates through mail, email, and their websites as the transition date approaches. Please make sure your contact information with EWEB is up-to-date.
If you need assistance in the meantime:
EWEB Customer Service for billing and account issues: Call 541-685-7000 or EWEB.answers@eweb.org
General questions for EWEB about the territory transfer: Email PublicAffairs@eweb.org
EWEB customer input: Visit EWEB.org/Board to contact your At-Large Commissioner or the General Manager's office, or provide comment at a public board meeting.
Lane Electric Cooperative members: Visit laneelectric.com for contact information.
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