The Eugene Water & Electric Board (EWEB) is considering a proposal that will raise the University’s energy costs 6 percent and cost the school approximately $130,000 more on its electricity bill each year.
EWEB’s proposal, which would take effect in November, would raise rates by an average of 5.4 percent for all electricity customers. The biggest blow would go to large business customers, like the University, with rate increases from 6.3 to 7.2 percent.
University utilities analyst Josh Ruddick, who works for Facilities Services, said electricity rates at the University would increase about 6.4 percent.
Based on the past several years, the University uses between 44 million and 45million kilowatt-hours per year, he said.
Ruddick said the University is doing its best to keep energy costs down.
“There are energy conservation measures in place that continue to keep down energy consumption,” he said, citing new lighting and lighting controls as examples. The Lillis Business Complex is a “green building,” taking advantage of conservation measures to reduce consumption.
The EWEB proposal would increase rates by 10.4 percent and eliminate a 5 percent surcharge imposed in 2002, resulting in the average increase of 5.4 percent. The surcharge was instituted after the West Coast energy crisisin 2001, when EWEB lost a considerable amount of money.
EWEB imposed the charge in 2002 to pay back the $30 million it had to borrow to refill its reserves, Ruddick said.
The average residential customer uses 1050 kilowatt-hours a month, resulting in a more than $4 per month increase under the latest proposal, EWEB spokesman Lance Robertson said.
Robertson blamed the proposed rate increase on the drought over the past five years, which has reduced energy generation at its four hydroelectric plants. This reduced the amount of money EWEB was able to make from selling excess energy.
“This is the driest five-year period since 1929,” he said, adding that it has reduced EWEB’s revenue each year.
He said two-thirds of the proposed increase would be used to offset the negative impact of the drought and would build up cash reserves for future drought situations. The other third is in response to the higher energy costs from Bonneville Power Administration.
BPA supplies EWEB with 75 percent of its power, and BPA has increased the price EWEB pays for power by $2.6 million next year, Robertson said.
The increase is responsible for 1.6 percent of EWEB’s proposed rate increase.
The rate increase, combined with about $1 million in spending cuts and revenues generated by the existing surcharge, will allow EWEB to operate during future low-water years. In normal water years, the additional revenues will be used to build cash reserves.
EWEB held a public hearing Sept. 7 and will hold a second meeting Oct. 5 at 7:30 p.m. in EWEB’s North Building to get public input on whether to impose the higher electrical rates.

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