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Topic Areas: About the Study | Reliability & Service | Power Supply & Energy | Rates & Programs | Territory Transfer Process
About the Study
What is being considered?
Eugene Water & Electric Board (EWEB) and Lane Electric Cooperative are evaluating the future of electric transmission and distribution service 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.
Why is this being explored now?
This concept has been discussed periodically over the past decade. In 2025, both utilities expressed renewed interest in formally studying the idea due to strategic alignment, customer service opportunities, and operational efficiency.
Does a realignment make sense?
Preliminary indications are yes. While more information is needed, we know:
- Both utilities provide safe and reliable electric service.
- EWEB and Lane Electric rates are very comparable.
- EWEB’s electric system is primarily urban in nature; however, the McKenzie River territory is rural, like most of Lane Electric’s service area.
- Service areas are contiguous. Lane Electric and EWEB personnel live in both areas and pass through EWEB territory en route to Upper McKenzie Valley.
What are the benefits of a possible realignment?
- 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.
Reliability & Service
How reliable is Lane Electric’s system compared to EWEB’s?
Lane Electric’s system is comparable in reliability to EWEB’s. Each year, the cooperative invests in reliability and infrastructure improvement projects across its system. Like EWEB, Lane Electric also participates in mutual aid agreements with neighboring utilities to bring in extra crews during major events.
What equipment do Lane’s service people have on hand?
Lane Electric service staff live in the service territory and carry tools for small repairs. Their proximity to infrastructure helps them quickly diagnose problems and relay what additional equipment may be needed from their crews and warehouse, streamlining restoration timelines.
Does Lane Electric have enough equipment to take over the new territory?
Yes. Lane has the ability to serve the additional territory. Additionally, the cooperative has plans to add both equipment and staff if the transfer occurs.
Does Lane have an outage map like EWEB?
Yes. Lane Electric has an outage map accessible on its website.
What is Lane’s timeline for installing smart meters?
Lane Electric expects to complete installation in its current territory by May 1, 2026. Installation in the new territory, if the transfer occurs, could begin mid-to-late May.
Does Lane have plans to underground lines?
Yes. More than half of the Lane Electric system is undergrounded, and additional projects using both FEMA and capital budget funding are planned. The cooperative is also increasing its vegetation management efforts.
Does Lane do preemptive power shut-offs (PSPS)?
Yes, as a last resort during red flag warnings, primarily for firefighter safety. The cooperative is making system adjustments similar to EWEB during wildfire season.
Power Supply & Energy
Should customers be concerned about all power coming from Bonneville with Lane Electric vs. mixed sources from EWEB?
This is not a significant concern as Lane Electric receives power from multiple Bonneville delivery points.
What is the average energy usage for upriver homes?
Average monthly usage is about 1,300 kWh for upriver homes under Lane Electric. The average overall usage for EWEB (including city and upriver customers) is about 1,200-1,600 kWh.
Does Lane allow solar producers to sell to the grid?
Yes. Lane Electric allows solar credits to roll over through winter and, unlike EWEB’s monthly true-up, Lane Electric performs a true-up annually in March.
Rates & Programs
This is a question being studied. Currently, EWEB and Lane Electric rates are very comparable, especially for typical monthly usage between 1,200 and 1,600 kWh. Even very low-use and high-use customers would see only a few dollars difference on their bills. Given power and infrastructure costs, rate increases are possible, independent of a territory realignment. Both EWEB and Lane Electric intend to ensure that any realignment does not result in additional costs for our existing customers. More information will be available as the study progresses.
Will EWEB raise rates upriver?
One of the key reasons EWEB is evaluating a territory realignment is the higher cost of serving the McKenzie Valley, and the need to manage expenses in a way that protects affordability for all customers. These elevated costs stem from factors like remote infrastructure access, increased vegetation management needs, and the extended travel required for urban-based field crews.
A Cost-of-Service Analysis, conducted as part of EWEB’s budget and rate-setting process, found that the cost of providing electric service in the McKenzie Valley is about 21% higher than the revenue currently collected from that area. Normally, this would support the creation of a distinct “upriver rate class” to better reflect the cost of service. However, because EWEB and Lane Electric are evaluating a potential service territory transfer, all EWEB customers — including those in the McKenzie Valley — will see the same overall electric rate adjustment beginning in February 2026.
If the transfer does not move forward, EWEB management will then seek Board approval to implement the higher rate in the McKenzie Valley, to ensure rates are aligned with the cost of providing service to that area.
Lane Electric’s rates are already structured for rural service.
How could Bonniville Power Administration rate changes affect customer pricing?
Although both utilities will experience BPA rate increase, the effects on Lane Electric customers could be greater due to stronger reliance on power from BPA.
How do Lane Electric’s rebate programs compare to EWEB’s?
Both utilities offer similar rebates, in part guided by programs of the Bonneville Power Administration.
Does Lane Electric offer average monthly billing?
Yes. Lane Electric has a program called Even Pay that helps members manage the “ups and downs” of their electric bill.
Will EWEB still own and maintain other assets upriver?
Yes. Even if electric service transfers, EWEB will continue to maintain its water and generation assets upriver. Customers can still call EWEB for these facilities.
Is Lane Electric committed to giving back to the community?
Yes. Lane Electric participates in and supports community events and works to be present and responsive to customers. Annually, the cooperative provides scholarships, community sponsorships, and donations to the communities it serves.
Territory Transfer Process
Is this a done deal?
No. The process is in a preliminary, exploratory phase. A detailed study is underway and will continue into early 2026. Any decision would include public input opportunities and require board approval from both utilities.
What would happen to EWEB customers in the McKenzie Valley?
Depending on the outcome of the study, some or all of EWEB’s customers in the McKenzie Valley could become Lane Electric members and gain voting rights for the cooperative’s board of directors. Many EWEB customers outside Eugene have shared that they want more direct representation, and this would provide it.
How many customers are involved?
The study is considering a potential realignment involving approximately 3,000 EWEB customers from Thurston Road, just east of Springfield, to Thompson Lane near Vida. A realignment of this size would represent a 25% increase in Lane Electric’s membership.
Outside of the elected board decision-making process, what requirements need to be addressed before a transfer could happen?
There are a number of process requirements involved in a potential transfer. For example, both utilities will need to carefully align billing data, and approvals will be required from agencies such as Bonneville Power Administration and the Oregon Public Utilities Commission. These steps are part of the standard process and may affect the overall timeline.
How will the transfer of easements happen?
Details are still being reviewed. In many cases, it may be as simple as naming Lane Electric as the successor on the easement.
How much will Lane Electric pay for the assets?
The utilities are determining the depreciated value of assets, aiming for fairness so that any transfer will not have a rate impact. Transferring the remaining depreciated value allows the customers who enjoy the benefit of the investments to continue to pay for them over the expected life of the asset.
What are the potential impacts on utility staff?
Workforce impacts are being evaluated as part of the study. If the realignment proceeds, EWEB will work to mitigate impacts on staff by strengthening our focus on resilience and modernization work in the Eugene area. Lane Electric Cooperative has existing systems and staff capacity to support additional customers and territory. As part of the study, the cooperative will assess operational needs to ensure a smooth transition should the realignment move forward.
Is EWEB still investing in electric infrastructure in the McKenzie Valley?
EWEB has paused certain infrastructure investments in the McKenzie Valley, such as planning and deployment of smart meters, as we explore a potential service territory realignment. That said, we remain fully committed to maintaining safe, reliable electric service for all customers. EWEB crews will continue to perform necessary maintenance, respond to outages, and ensure system reliability in the McKenzie Valley while the study is underway.
Are customer transfers common amongst utilities?
Yes. This is nothing new. Service area realignments between utilities occur for different reasons, including operational safety and service improvements, business processes and efficiencies, boundary adjustments, etc.
Is this something that will require a vote by cooperative members?
No. The decision whether to proceed or not lies with the respective boards, with input from the general managers.
Will customers/members have a chance to comment?
Yes. Lane Electric members and EWEB customers will have a chance to learn more and comment on the potential realignment.
What’s next?
Public updates will be shared throughout the process, with multiple opportunities for customer and interest holder input. If the realignment is approved, the earliest it could occur is May 2026.
When will the boards make a final decision?
A decision is expected later this year.
