Utilities Ink Customer Transfer Deal

The Eugene Water & Electric Board (EWEB) and Lane Electric Cooperative (LEC) have signed formal agreements to transfer electric distribution service in the McKenzie Valley from EWEB to Lane Electric, marking a milestone in the renewed discussions of realigning the metro utility’s service territory.

Under the agreement, Lane Electric will purchase EWEB’s electric distribution assets serving customers between Thurston Road and Vida. The purchase includes poles, power lines, transformers, meters and related infrastructure, but do not EWEB’s power generation facilities, transmission lines, or substations.

Lane Electric will pay $8.6 million for the assets, along with defined administrative costs, through monthly payments over 20 years at an interest rate of 4.5%.

Utility officials said by signing the agreements the process has moved from evaluation into detailed planning and operational coordination, with both utilities emphasizing a collaborative approach aimed at ensuring a smooth transition for McKenzie Valley residents and businesses.

“This is the most significant development at this utility in recent history,” Lane Electric General Manager Scott Coe said in a statement. “I’m excited to share that Lane Electric and the Eugene Water & Electric Board have agreed to an asset purchase and sale agreement for the cooperative to take over electrical service to the lower McKenzie and unite service in the River valley. Our staff has done a tremendous job working through the details of taking on this new territory.”

Once details of the transfer are complete, approximately 3,300 customers currently served by EWEB will become members of Lane Electric Cooperative on the target date of May 1, 2026. As members of the Lane Electric, those customers will be eligible to elect members of the coop’s board of directors, answering an often heard complaint about their inability to vote in EWEB elections.

EWEB says the realignment will allow the utility to focus more fully on strengthening infrastructure and resiliency in Eugene, where about 97% of its customers are located. For McKenzie Valley customers, Lane Electric said uniting electric service along the McKenzie River will allow for better allocation of resources and capital investments, improved long-term strategic alignment, and stronger financial performance that can help guard against significant rate increases. The cooperative plans to add staff to support the expanded service area and maintain current service levels for existing members.

In the coming months, EWEB and Lane Electric will coordinate final meter readings, customer account transfers, billing systems and technical integration. Until the transition is completed, EWEB will continue to provide electric service as usual.

Lane Electric plans to host a series of new customer meetings in the McKenzie area beginning in March to provide information and answer questions about cooperative membership and services.

Although EWEB will no longer provide electric distribution service in the McKenzie Valley after the transition, the utility will continue to operate electric generation facilities in the area and steward the McKenzie River watershed, which supplies drinking water to the Eugene-Springfield metro area community.

Lane Electric is governed by a seven-member board of directors. To ensure balanced representation following the transfer, the board has approved redistricting that will place the McKenzie geographic area within both the McKenzie District and the Central District, alongside areas including Row River and Oakridge.

Following completion of the transfer, Lane Electric will serve approximately 13,500 customers across its service territory.