Steam utility transition plan
Faced with rising costs, an eroding customer base and an inefficient distribution system, EWEB is beginning the
process of shutting down its steam utility.
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
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.
- 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
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.
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1962
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EWEB enters the steam business after acquiring the system from a private operator
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1990
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Major customer Chase Gardens leaves the steam system in favor of an alternative fuel
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1994
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Steam utility converts from hog fuel supplied by local mills to natural gas boilers
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1998
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Agripac closes, resulting in the loss of a second major steam customer
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January 2008
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EWEB's Board of Commissioners tasks the General Manager with developing a long-range plan for
steam utility
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August 2008
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Letter and survey sent to current steam utility customers
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September 2008
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EWEB Board approves Steam Utility Transition Policy
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October 2008
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Letter sent to steam utility customers; Staff compiles customer input
and incorporates that feedback into the plan
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December 2008
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Board approves Steam Utility Transition Plan
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June 2009
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RFP for engineering firm to conduct alternative source analysis and develop estimates on
customer conversion costs
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August 2009
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EWEB Board awards
McKinstry a contract to conduct an engineering study of all steam customer
facilities
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2010-13
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EWEB steam customers to transition off system
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2012
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Three-year steam delivery contract with PeaceHealth expires
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- Update on Steam Utility Transition Plan – McKinstry to Begin Building Site Assessments
(August 27, 2009)
- Letter to Steam Customers with Update on Transition Plan
(June 5, 2009)
- Staff Assessment of Northwest Neighborhood Energy's District Heating Study
Concept
(May 14, 2009)
- Oregon Business Energy Tax Credit Application for Preliminary Certification for
Conservation Projects
(Jan. 14, 2009)
- Steam Utility Transition Plan –
Requested Board Action
(Dec. 10, 2008)
- Steam Utility Transition Plan Board Presentation
(Oct. 7, 2008)
- Letter to Steam Customers
(Oct. 1, 2008)
- Steam Utility Transition Plan
Outline Discussion Draft
(Sept. 30, 2008)
- Steam Utility Transition
Policy SD18 and Resolution No. 0826
(Sept. 16, 2008)
- Steam Utility Transition Plan Board Presentation
(Sept. 2, 2008)
- Steam Utility Transition Plan
– Background Information and Draft Policy
(Aug. 26, 2008)
Send us an email with your questions or comments regarding the steam utility transition plan.