Power Rates Going Up for River Residents

Folks in the McKenzie River area will see changes on their electric bills soon, as both Lane Electric Cooperative and the Eugene Water & Electric Board (EWEB) prepare to raise rates over the coming months.

Lane Electric will raise its electricity rate by 7% beginning December 1, although some critics say the increase is closer to 12%. The change follows a major cost hike from the Bonneville Power Administration (BPA), which supplies a large share of the region’s power. BPA raised its own rates October 1 – 19.9% for transmission and 8.8% for generation.

“With more than a third of our electricity coming from BPA, this increase was unavoidable,” the co-op said in a release. Lane Electric is also simplifying its rate structure by eliminating seasonal pricing and dropping extra charges for customers using more than 1,500 kilowatt-hours a month.

EWEB customers will see more gradual changes next year. Earlier in 2024, the utility forecasted a double-digit 15% increase. But after reviewing its finances, EWEB’s elected board voted in October to soften the blow.

Instead, electricity rates will go up 7% in February 2025, followed by another BPA passthrough increase – currently estimated at 4% – in October 2025.

For the average metro area customer, the utility says, that works out to less than $1 a day in combined water and electric rate increases. EWEB’s typical city customer currently pays around $190 a month for power and $43 for water.

The Bonneville Power Administration is a federal, nonprofit agency that provides most of the Northwest’s electricity through the region’s vast hydropower system. EWEB buys about 80% of its power from BPA, while Lane Electric relies on BPA for roughly a third of its supply.

Every two years, BPA reviews and updates its prices – and those costs ripple directly down to local customers. Hydropower remains one of the region’s most affordable energy sources, but purchased power is still EWEB’s biggest expense, making up nearly 40 cents of every dollar on a customer bill.

Both EWEB and Lane Electric have stressed that these rate changes aren’t about profit. As community-owned, not-for-profit utilities, they say rates are set to cover the true cost of delivering reliable service – including maintenance, infrastructure upgrades, inflation, and wholesale power costs.

Final 2025 rates will be finalized in December. Residents are encouraged to take part in the public process and share feedback with their elected utility commissioners.

*The EWEB information details 2025 rates, which have been in effect for essentially the last year..

More information about EWEB’s upcoming meetings and rate discussions is available at eweb.org/Board