The Eugene Water and Electric Board voted to enact a 36 percent rate increase on residential electric bills Friday, along with an 11 percent increase in water bills to begin with the November bill.
EWEB spokesman Lance Robertson said the increase was expected, since the Bonneville Power Administration, which supplies 70 percent of EWEB’s power, warned the board that wholesale rates could increase by as much as 250 percent this fall. Wholesale rates only went up 46 percent, Robertson said, but EWEB still needed to pass the increase on to customers.
The board decided that a tiered rate structure, which charges an increasing percentage rate as customers use more energy and water, will save most residential customers more money than a flat 36 percent increase on electric and 11 percent on water.
“More than 70 percent of our customers are going to be better off with a tiered rate structure than a flat rate,” EWEB President Dorothy Anderson said.
Robertson said the average residential customer uses 1,250 kilowatt-hours and will see a nearly $20 dollar increase in his or her electric bill. This means most customers will be paying less than a 36 percent increase. Those who use more than 2,000 kwh will be paying more than 36 percent.
The average water customer uses 9,000 gallons of water and will see a $2 increase in water charges.
Community members spoke out at the Friday meeting in favor of the tiered rates, because many believe the system will promote energy conservation.
“I strongly support tiered rates,” Eugene citizen Bruce Newhouse said. “[The system] targets over-consumers and teaches that we reduce the energy demand by making [conservation] choices.”
Several citizens said a flat rate would mean one customer’s rates would rise because of another customer’s lack of conservation.
“People waste energy without consideration and drive up my rates,” Eugene citizen Tim Bowerman said. “A tiered rate system would prevent that.”
But there are still those who are worried that the tiered rate structure is not the best way to handle the price increase, including EWEB Commissioners Sandra Bishop and Patrick Lanning.
Both commissioners voted against the tiered structure because they are concerned that customers do not understand the system.
“A good 80 percent of people aren’t understanding the tiered system,” Lanning said. “We need to educate people or they aren’t going to see the benefit.”
But Commissioner Susie Smith said public education began last April when EWEB first began increasing prices.
“A flat rate is unfair; the tiered structure is necessary because of such a large increase,” Smith said. “We have done tons of public discussion on this. It’s imperative to move forward with the tiered system.”
EWEB is expecting a large number of calls from customers who will attribute the increase to the tiered system and not to the unavoidable increase, Robertson said.
Bishop also voted against tiered rates for the increase in water prices.