EWEB continues 2025 budget and rate-setting process
EWEB’s elected Board of Commissioners is considering rate changes intended to help maintain reliable utility services and support essential investments in Eugene’s water and electric infrastructure. The 2025 budget proposal includes the following residential rate adjustments:
RESIDENTIAL ELECTRIC (Average usage 1600 kilowatt hours (kWh) per month for all-electric single-family house)
- Basic Charge: Increase $5 per month
- Usage Charges: Increase less than 1¢ per kWh
RESIDENTIAL WATER (Average usage 9,000 gallons per month for single-family house inside city limits*)
- Basic Charge: Increase 91¢ per month
- Usage Charge: Increase approximately 18¢ per thousand gallons
*Excludes wholesale customers & elevation pumping fees.
The proposed budget also includes rate changes for NON-RESIDENTIAL (business and general service customers).
- Small General Service (up to 30 kW per month): Electric +6.7%, Water +8.3%
- Medium General Service (31-500 kW per month): Electric +5.1%, Water +8.3%
- Large General Service (501-10,000 kW per month): Electric +8.6%, Water 8.3%
The increase in the basic charge will help cover some—but not all—of the fixed costs associated with your water and electricity services. These fixed costs, which include essential equipment—such as meters, poles, pipes, and trucks—as well as labor and technology, remain constant regardless of how much water or electricity is used. While increasing the basic charge helps stabilize funding, we recognize the importance of conservation, equity, and affordability for all customers.
To limit the impact on customer bills, we are implementing gradual increases to the basic charge over time. By phasing in these adjustments, we aim to carefully balance covering essential fixed costs while still encouraging efficient resource use and minimizing the burden on low-usage and low-income customers.
ANTICIPATED BONNEVILLE POWER ADMINISTRATION RATE CHANGE
Bonneville Power Administration (BPA) is a nonprofit federal agency that provides wholesale energy and transmission services to utilities in the Northwest. EWEB buys almost 80% of Eugene’s electricity from BPA. Every other year, BPA updates its rates and your rates are automatically adjusted to reflect these costs.
To ease impacts on customers, 2025 electric rate increase will be staggered: a 7.7% EWEB residential rate increase in February 2025, followed by a direct passthrough of a Bonneville Power Administration (BPA) rate increase in October 2025, which is currently forecasted at 4%.
The combined total residential rate increases for electricity and water in 2025 will amount to less than $1 per day.
| Current average residential bill | Projected average bill effective February 2025 (EWEB rate increase) |
Projected average bill effective October 2025 (BPA increase) |
|
|---|---|---|---|
| Electric |
$190 per month, or |
$203 per month, or |
$211 per month, or |
| Water |
$43 per month, or |
$46 per month, or |
Same |
WHY ARE RATE INCREASES NECESSARY?
As a community-owned utility, EWEB operates not for profit but to serve our community by providing safe, reliable water and electricity. Rate increases are primarily driven by two key factors:
Aging infrastructure needs investment.
Like utilities nationwide, much of our community’s electric grid was built in the 1960s and 1970s and is now reaching the end of its functional life. Our water storage reservoirs and pipelines, built by earlier generations, are also aging and do not meet current seismic standards.
Rates have not kept pace with inflation.
The costs to produce and deliver electricity and water have steadily risen. Between 2017 and 2021, we maintained stable rates through prudent financial management. However, inflation has surged since 2020, and our rates have not kept up.
PUBLIC PROCESS
Because EWEB is customer-owned, utility rate-setting and other business is conducted in open public meetings. Public rate hearings were held in October and November 2024. At the Dec. 3 Board of Commissioners meeting, a third public hearing will be held and Commissioners will be asked to approve the 2025 budget and customer rates. To watch monthly Board meetings, provide public comment, or contact your elected Commissioner, visit eweb.org/Board.
