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Topic Areas: Overview | Rates & Programs | Reliability & Service
Overview
What's changing?
Eugene Water & Electric Board (EWEB) and Lane Electric Cooperative have agreed to transfer electric service in the McKenzie Valley from EWEB to Lane Electric.
If you currently receive electric service from EWEB in the McKenzie Valley, Lane Electric will become your electric service provider once the transition is complete.
When will the change happen?
The utilities are targeting May 1, 2026, for the service transition. Until then, EWEB will continue to provide electric service as usual.
What area is included?
The transfer includes approximately 2,500 customers between Thurston Road and Vida.
The transfer includes electric distribution equipment such as poles, lines, transformers, meters, and related infrastructure. It does NOT include EWEB power generation assets, substations, or transmission.
Why are EWEB and Lane Electric pursuing this transition?
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 the utility’s 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.
In 2025, both utilities expressed renewed interest in formally studying a territory transition and determined that a transfer would provide operational, strategic, and customer service benefits.
- 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.
What if the service transfer does not move forward on May 1?
EWEB and Lane Electric are moving forward with the service territory transfer and are focused on completing the transition by May 1, 2026
If the transfer were not to move forward on that date, your electric service provider would not change at this time. In addition, EWEB management would evaluate next steps and could seek board approval to align rates in the McKenzie Valley with the higher cost of providing service to that area.
How much will Lane Electric pay for the electric assets?
Lane Electric will pay $8.6 million for the electric distribution assets, along with defined administrative costs. Payments will be made over 20 years at an interest rate of 4.5%, allowing costs to be recovered over the expected life of the assets.
What approvals or next steps remain before the transfer is completed?
Several standard regulatory and operational steps remain, including coordination with agencies such as Bonneville Power Administration and the Oregon Public Utilities Commission, as well as aligning billing systems, meters, and customer accounts.
Both utilities are working collaboratively to complete these steps while minimizing customer disruption.
What happens to EWEB facilities in the area?
The transfer includes electric distribution equipment only, such as poles, lines, transformers, and meters.
EWEB will continue to own and operate:
- Electric generation facilities
- Substations and transmission lines
- Drinking water source protection infrastructure
- Ongoing stewardship of the McKenzie River watershed
You will still see EWEB crews working in the area for these purposes.
Will I be able to vote in Lane Electric elections?
Yes. After the transition, customers will become members of Lane Electric Cooperative and will be able to vote for and elect representatives to the cooperative’s board of directors.
The McKenzie area will be represented within Lane Electric’s board district structure.
Will I need to do anything right now?
No action is required at this time. Customers will receive advance notice and clear instructions if any steps are needed before the transition.
How will I get updates?
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.
Rates and programs
What happens to my account and billing?
Your electric service account will transfer from EWEB to Lane Electric around the time of the transition. Customers will receive advance communication with details about billing, payments, and any actions needed before the change.
Will my electric rates change?
There is an EWEB electric rate adjustment coming in February 2026, and it applies to all EWEB customers, including those in the McKenzie Valley. Learn more about EWEB rates.
With the newly adopted rates, most EWEB residential electric bills are expected to increase by approximately $3-6 per month, depending on usage. This adjustment is part of EWEB’s regular budget and rate-setting process and is not related to the service territory transfer.
After the transition, McKenzie Valley electric customers will receive service from Lane Electric.
The rates at both utilities are currently very comparable for typical household usage. As with all utilities, rates may change over time due to power and infrastructure costs, independent of this transition.
How do Lane Electric’s rebate programs compare to EWEB’s?
Both utilities offer similar energy efficiency rebates, many of which are guided by programs offered from the Bonneville Power Administration. Similar to EWEB’s Budget Billing program, Lane Electric offers Even Pay to help members manage the “ups and downs” of their electric bill. Lane Electric also allows solar producers to sell to the grid. Solar credits to roll over through winter and, unlike EWEB’s monthly true-up, Lane Electric performs a true-up annually in March.
Reliability & Service
Will my power go out during the transition?
No. The transition is being carefully planned to avoid service interruptions. Both utilities are working together to ensure a smooth changeover with minimal disruption for customers.
Will Lane Electric be prepared to serve the area?
Yes. Lane Electric has a long history of providing electric service in rural areas, including other parts of the McKenzie Valley. The cooperative has the equipment, staff, and plans in place to serve the additional customers.
Who will I call if I have an outage?
Before the transfer: Continue to contact EWEB as you do today.
After the transfer: You will contact Lane Electric Cooperative for outages, service issues, and billing questions.
Customers will receive clear contact information before the transition occurs.
