Steam utility transition plan
Photo of steam utility

Faced with rising costs, an eroding customer base and an inefficient distribution system, EWEB is beginning the process of shutting down its steam utility.

Transition policy guidelines

After several years of study, EWEB's Board of Commissioners adopted a policy in 2008 which mandates that the transition out of the steam utility will be completed in a manner that is:

  • Socially responsive
  • Environmentally and financially responsible
  • To the fullest extent possible, balances the considerations of steam customers, the downtown community, the community at large and EWEB's electric utility interests
Who are EWEB's steam customers?

Current steam customers include:

  • Downtown-area businesses
  • Medical service providers
  • Large, multi-unit residential facilities
  • Various government offices
  • Churches

In 1985, the utility served 124 customers compared with 75 today.

Why transition from steam to alternative fuels?
  • Expected hikes in natural gas rates will increase steam production costs.
  • PeaceHealth, the steam utility's largest customer, has shifted the bulk of its operations to the Sacred Heart Medical Center at RiverBend in Springfield, and will likely continue reducing its University District facility steam requirements.
  • The aging steam distribution system no longer distributes steam efficiently to customers. Significant capital investments would be required under any future operating scenario.

Each of these challenges will shift a greater portion of the system operating costs onto the remaining customers, pushing steam costs above what could be considered competitive compared with other fuel alternatives.

Read more Steam Transition Facts
Conversion process

To ease the transition for steam customers, EWEB partnered with the Oregon Department of Energy to fund an engineering study of all steam customer facilities.

EWEB awarded McKinstry the contract for the study in August 2009. McKinstry is a Northwest design and engineering firm specializing in building energy services. The firm began work in September 2009 and is doing the following for each building on the EWEB steam system:

  • Assessing the requirements and the conversion costs to transition to alternative fuels
  • Reviewing other energy-saving measures and providing each customer with a prioritized menu of cost-saving opportunities

Read more about the steam customer engineering studies

EWEB and ODOE are also exploring options to develop a program that would offer steam customers low-interest loans to cover the costs of conversion.

Timeline


1962 EWEB enters the steam business after acquiring the system from a private operator
1990 Major customer Chase Gardens leaves the steam system in favor of an alternative fuel
1994 Steam utility converts from hog fuel supplied by local mills to natural gas boilers
1998 Agripac closes, resulting in the loss of a second major steam customer
January 2008 EWEB's Board of Commissioners tasks the General Manager with developing a long-range plan for steam utility
August 2008 Letter and survey sent to current steam utility customers
September 2008 EWEB Board approves Steam Utility Transition Policy
October 2008 Letter sent to steam utility customers; Staff compiles customer input and incorporates that feedback into the plan
December 2008 Board approves Steam Utility Transition Plan
June 2009 RFP for engineering firm to conduct alternative source analysis and develop estimates on customer conversion costs
August 2009 EWEB Board awards McKinstry a contract to conduct an engineering study of all steam customer facilities
2010-13 EWEB steam customers to transition off system
2012 Three-year steam delivery contract with PeaceHealth expires

Documents

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