Utility Signs $2.5+ Billion Power Deal

The Eugene Water & Electric Board has finalized a major power-supply agreement with the Bonneville Power Administration, locking in what officials estimate to be between $2.5 and $3 billion worth of electricity through 2044.

The long-term contract ensures continued access to the federal agency’s low-cost hydropower, which already supplies about 80 percent of EWEB’s energy. BPA draws power from Columbia and Snake River dams and the region’s only commercial nuclear plant, the Columbia Generating Station.

“For many decades, BPA has been a dependable partner, and we are glad to continue that partnership for another two decades,” said Brian Booth, EWEB’s chief energy resources officer.

Hydropower from BPA is among the least expensive in the market, thanks in part to federal laws that give community-owned utilities priority access to the federally built dam system. EWEB officials say that advantage helps keep local electric rates significantly below those of many other regional providers.

EWEB estimates that power procurement accounts for about 30% of its customer bills. The remainder covers system maintenance, customer service, water infrastructure and other operational needs.

In addition to affordability, officials emphasized the environmental and operational benefits of the BPA supply. More than 90% of EWEB’s power portfolio is carbon-free, and the hydropower system is flexible enough to meet winter surges in demand.

“When cold weather hits, our customers’ electric heaters kick into overdrive, and so does the hydropower system,” Booth said. “No other energy technology today can generate that kind of abundant, carbon-free energy exactly when we need it.”

The contract decision follows two years of analysis, public outreach and resource planning. In 2023, EWEB completed an integrated resource plan that reaffirmed BPA hydropower as the most reliable and cost-effective cornerstone of its long-term energy mix.

Because BPA is entering a new contract period beginning in 2028, utilities across the Northwest were required to select from a menu of power products tailored to different operating needs. EWEB-Oregon’s largest community-owned utility-evaluated the options with help from community representatives through a “Community Table” focus group.

Utility staff ultimately selected a product known as “block with shaping,” which provides a predictable block of BPA power along with flexibility for EWEB to manage supplies using its own resources, including the Carmen-Smith Hydroelectric Project on the McKenzie River.

“We are making a bet on our customers,” Booth said. “The BPA product we chose gives us more flexibility to meet our customers’ energy needs, but it also gives us more responsibility. When we dug into the finances, we found that if we dedicate ourselves to deep partnerships with our customers, we can keep costs lower than if we had gone all-in on BPA.”

The new contract must be signed by all participating utilities by the end of 2025 and will take effect in 2028. EWEB leaders say the agreement ensures long-term stability while giving the utility room to innovate within a rapidly evolving energy landscape.