In board meetings earlier this year, the Eugene Water and Electric Board of Commissioners approved a set of goals to expand support for residents on limited incomes.
One of these goals is to enhance EWEB’s limited income support programs. EWEB officials said one of the programs they want to improve is their Customer Care Program, which currently provides qualifying households with $280 each annually. Households can apply for the assistance once per year on a first-come, first-serve basis, starting on the first business day of each month.
EWEB predicts that nearly 6,000 households will be able to use the program this year. Last year, the program served roughly 5,000 households annually. To expand the assistance, EWEB raised the total funding available for the program by nearly 21% to $1.6 million. According to EWEB spokesperson Aaron Orlowski, the program is funded entirely by ratepayer dollars.
EWEB officials said the demand for the program often exceeds the budget allocated, especially in the winter months when utility bills are typically the highest.
“The Customer Care Program is a critical support for thousands of households, but as it stands, it’s a blunt instrument,” EWEB General Manager Frank Lawson said. “It provides broad relief, but not necessarily in the most targeted or effective way.”
In addition to improving the Customer Care Program, EWEB is exploring other ways to help customers. Officials are exploring new programs like pre-pay billing, which they say would allow customers to pay their EWEB bill in advance. They add that the program could help customers better manage their usage and avoid unexpected bills.
Another way EWEB is looking to improve affordability for residents is by enhancing energy efficiency opportunities in Eugene’s rental market. While EWEB offers rebates, loans and a Home Energy Score Program for rental units, officials say many tenants face challenges accessing these energy-saving programs. To improve this, officials said they will analyze demographic and housing data to help them better understand existing opportunities to improve energy efficiency.
“The rental stock in Eugene … makes up about 50% of the housing stock in Eugene. Some of it is new, some of it is energy efficient and a lot of it is not,” Orlowski said. “There’s a challenge because renters pay the utility bill, but landlords manage the property.”
How much are EWEB power rates going up this year?
This year, EWEB’s residential power rate increases are staggered. In February, residential power rates increased by nearly 8%. In October, officials say those rates will increase further via the direct passthrough of a Bonneville Power Administration rate increase, which is currently forecasted to increase by 4%. If that forecast is correct, residential power rates will increase by nearly 12% this year.
Springfield-Eugene Tenant Association Board Member Kevin Cronin commented on the recent EWEB power rate increase, highlighting the impact in relation to February’s colder temperatures.
“People are really upset about their EWEB bill, particularly (February’s),” Cronin said. “They had a rate increase, and at the same time, the mean temperature for the region was really low. Everybody used about a thousand more kilowatt-hours, which really hurt people’s bills.”
EWEB officials said three major factors are behind the power rate increases:
Electric investments: Officials said these investments include rebuilding aging substations and upgrading EWEB’s Carmen-Smith hydroelectric project.
Inflationary pressures: Since 2020, officials said that although inflation has “increased significantly,” EWEB’s rate increases have not kept up.
They said there is currently a gap of roughly 20% between EWEB’s rate increases and the rate of inflation since 2016.
“We’re just trying to catch up … We have to raise rates a bit to try and catch up with inflation. It is a balancing act,” Orlowski said.
Orlowski said those inflationary costs “went up higher for the electric sector than they did for the economy as a whole.
Regulatory Environment: Officials said increasing regulations are placing more requirements and restrictions on EWEB operations and investments.
How do EWEB’s power rates compare to other consumer-owned utilities?
EWEB and the Springfield Utility Board are customer-owned utilities, which means they do not function to earn a profit. Instead of being controlled by independent investors or shareholders like Portland General Electric or Pacific Power, customer-owned utilities are owned by the community they serve.
Last year, EWEB power cost roughly 58% more than Springfield for the same amount of residential energy. In September 2024, EWEB charged Eugene residents $70 more per month — or $840 more per year — than the Springfield Utility Board for 1,600 kilowatt-hours of electricity.
Orlowski attributed part of the cost differences between Springfield and EWEB for electricity to the EWEB’s investments in infrastructure. He said EWEB has invested “a lot” in its infrastructure. Orlowski pointed to EWEB’s response to the January 2024 ice storm as proof that these investments have paid off.
“We were able to get power on a lot more quickly than Springfield did,” Orlowski said. “Fewer of our customers lost power.”
Springfield spokesperson Meredith Clark responded to Orlowski’s comments about Springfield’s response to the January 2024 ice storm. After reviewing news accounts, she said, “It appears all our local public utilities announced restoration was complete at about the same time.”
The January 2024 ice storm had “back-to-back ice storms that left behind unprecedented ice accumulations, far beyond anything our part of the Willamette Valley has ever seen. It hit the eastern part of Springfield particularly hard, making SUB’s restoration effort the largest in our 75-year history,” Clark said. “Our crews, like those at other utilities, worked diligently to get power back on … Like others, we brought hired outside crews to help us get that job done as quickly and safely … as possible.”
Clark added that Springfield has a “robust system” and one of the highest reliability ratings awarded by the American Public Power Association. In 2024, the association awarded Springfield a 2023 Certificate of Excellence in Reliability.
Based on the 2018 to 2022 data submitted to receive the award, Springfield reports its power is 99.8% reliable. According to Springfield, the data used to determine who receives the award excludes major events, which are defined as “events exceeding the reasonable design or operational limits of an electric system.”
EWEB, which received other American Public Power Association awards for 2023, did not receive the award that year. Based on 2023 outage metrics, EWEB reports its power is 99.44% reliable.
Clark also commented on the cost differences between Springfield and EWEB for electricity. She said Springfield is “very focused” on delivering “cost-effective rates” for its customers.
“We always try to make smart investments in electric infrastructure on behalf of our customers,” Clark said.
Clark pointed to the Glenwood substation — currently under construction with completion anticipated in 2026 — as an example of Springfield’s efforts to deliver “cost-effective” rates. She said the site is being funded without any loans, which helps Springfield keep “rates in check.” Clark added that the Glenwood site will also help “support future growth in the area and provide extra reliability” to customers on the west side of Springfield’s system.
Another reason Orlowski said electricity costs are higher is that EWEB has its own power-generating facilities, which results in “higher costs.” Springfield doesn’t generate any of its power; it gets all of its power from the BPA. According to EWEB, 20% of its power comes from EWEB-owned and co-owned power-generating facilities. The other 80% comes from power purchasing agreements, the vast majority of which is generated by the BPA.
EWEB power, though, is not the highest among consumer-owned utilities in the Pacific Northwest. In September 2024, Seattle City Light power cost roughly 18% more than EWEB for 1,600 kilowatt-hours of electricity. Seattle City Light reports that approximately 40% of its electricity comes from its own hydroelectric power-generating facilities.
EWEB does not have a low-income bill discount program like other utilities in the Pacific Northwest. The utilities that have this program include Portland General Electric, Pacific Power and Seattle City Light. Instead of having to apply for an annual one-time discount that could run out, as is the case with EWEB’s Customer Care program, these programs reduce a household’s monthly utility bill based on their qualified income level.
On the future of the EWEB Customer Care Program, EWEB General Manager Lawson said, “We have an opportunity to refine the program to better match assistance with the needs of our customers, ensuring that those facing the greatest financial strain receive the help they need while making the best use of our customers’ resources.”
