EWEB and Lane Electric Cooperative sign agreement to transfer EWEB's McKenzie Valley customers
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 its electric service territory in the McKenzie Valley to Lane Electric. The area includes approximately 2,500 customers between Thurston Road and Vida.
The transfer involves electric distribution facilities only — such as poles, lines, transformers, meters, and related infrastructure — and does not include EWEB’s power generation, transmission or substation assets. Under the agreement, Lane Electric will pay $8.6 million for the assets, along with defined administrative costs, through monthly payments over 20 years at an interest rate of 4.5%.
The formalized agreements mark a shift from evaluation to the detailed planning and operational work required to complete the transition. The effort reflects a collaborative approach by both utilities, with a shared focus on ensuring a smooth, customer-centered transition that benefits McKenzie Valley residents and businesses.
Both EWEB and Lane Electric, which provide safe and reliable services at comparable rates, see operational and strategic benefits in the realignment that will ultimately benefit customers.
Following the transfer, EWEB will shift its full focus on strengthening urban infrastructure and resiliency in Eugene, where 97% of its customers live. For McKenzie Valley residents, the change offers the benefits of receiving service from a utility focused on rural areas, along with the opportunity to vote for and elect representatives to Lane Electric’s board of directors, providing a more direct form of local representation.
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. 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 its McKenzie Valley customers as usual. Once the transition is complete, those customers will become members of Lane Electric Cooperative. To help address member questions, Lane Electric will host a series of new customer meetings in the McKenzie area starting in March.
EWEB has served the McKenzie Valley for decades and will continue to maintain a strong presence in the area even after the electric service transition. EWEB will remain actively involved through its electric generation facilities, drinking water source protection, and ongoing stewardship of the McKenzie River watershed, which supplies drinking water to the Eugene-Springfield community.
Lane Electric is governed by a seven-person Board of Directors. The Lane Electric Board has chosen to redistrict a few areas of its territory to ensure balanced representation for all members. Specifically, the McKenzie area will have representation in two districts: the McKenzie District, and the Central District. Other districts Include Row River and Oakridge.
After the service territory transfer is complete, Lane Electric will serve approximately 13,500 customers.
