EWEB Sets 2026 Budget and Rates, Advances Evaluation of McKenzie Valley Service Territory Realignment
At a public meeting on December 2, 2025, Eugene Water & Electric Board (EWEB) Commissioners approved the utility’s 2026 budget and corresponding price updates for electric and water customers, reaffirming its commitment to delivering safe, reliable utility services while investing in long-term infrastructure and system resilience. In a separate but complementary decision, the Board also authorized EWEB’s General Manager to negotiate a potential electric service territory realignment with Lane Electric Cooperative for a portion of the McKenzie Valley.
“Taken together, the 2026 budget and rate adjustments and the territory-realignment evaluation reflect EWEB’s dedication to responsible financial stewardship, modern, resilient utility infrastructure, and thoughtful planning for the future — all while keeping the needs of customers front and center,” said EWEB General Manager Frank Lawson.
2026 budget continues EWEB’s commitment to providing safe, reliable water and electricity at cost-based rates
Like utilities, cities, and service providers across the nation, EWEB is grappling with higher costs for materials, equipment, and labor, along with the need to replace and reinforce aging infrastructure. These investments necessitate raising rates to protect public health, ensure community safety, and support a resilient economy.
In passing the 2026 budget, EWEB’s elected Board of Commissioners reaffirmed its commitment to fairness and affordability through cost-based rates and programs for customers needing assistance. The 2026 budget includes $2.1 million in bill assistance for limited-income customers, an increase of $500,000 compared to 2025.
The 2026 budget totals $487.3 million for the electricity and water utilities combined, a sum that is $2.3 million less than the 2025 budget. The cost of procuring energy, primarily from the federal Bonneville Power Administration, accounts for about 30% of the total budget. Other costs reflected in the budget include upgrading and maintaining the poles and wires that deliver energy, building seismically resilient water storage tanks, and planning for a second source of drinking water on the Willamette River.
As part of its approval, the Board adopted new customer rates. Most residential electric bills will go up about $3-6 per month, depending on usage, starting in February 2026. As part of the change, EWEB is raising the fixed monthly charge that covers core system costs and slightly reducing the rate customers pay for the electricity they use. This adjustment better reflects the true cost of running the electric utility, since EWEB must maintain the poles and wires that connect a customer to the grid, regardless of how much energy a customer actually uses.
“The first electron is the most expensive to deliver,” Lawson said. “By raising the fixed monthly charge, our rates better reflect the cost of providing service to customers. And because EWEB is a nonprofit, community-owned utility, we develop rates that align with the true cost of service.”
The average water bill for a single-family home is estimated to rise by $2 per month in February. But that increase will be offset for most customers when the temporary Watershed Recovery Fee, established after the Holiday Farm Fire, ends in mid-2026. Once the fee is removed, most residential customers will see their monthly water bills drop by about $1 compared to 2025.
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Budget and Rate Information
As a customer-owned utility, we do not operate to earn a profit. Prices are based on the costs to serve our community with safe, reliable water and electricity.
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