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2025 Rate Update: Less than Initially Forecasted

October 31, 2024 Jen Connors, EWEB Communications

Graph of original and updated 2025 rate projections

While the costs of producing and delivering electricity and water are rising, EWEB is actively working to reduce the financial impact of rate increases in 2025.

Earlier this year, we forecasted a 15% increase in electric rates and a 9% increase in water rates for all customer classes, effective February 2025. However, we have been able to reduce the projected increases through careful financial management and cost-saving initiatives.

*At the public board meeting on Oct.1, 2024, EWEB's elected commissioners took further steps to ease the impact on customers by staggering the electric rate increase over two smaller adjustments: a 7% EWEB rate increase in February 2025, followed by a direct passthrough of a Bonneville Power Administration (BPA) rate increase in October 2025, which is currently forecasted at 4%.

The average EWEB residential customer currently pays $43 a month for water and $190 for electricity. The combined total rate increases for electricity and water in 2025 will amount to less than $1 per day.

How does Bonneville Power Administration affect your rates?

BPA is a nonprofit federal agency that provides wholesale energy and transmission services to utilities in the Northwest. EWEB buys almost 80% of Eugene’s electricity from BPA. Every other year, BPA updates its rates and your rates are automatically adjusted to reflect these costs.

Although hydropower is an affordable source of electricity, buying that power — particularly from BPA — remains EWEB’s largest budget item, accounting for nearly 40¢ of every dollar in your EWEB bill.

Publicly owned utilities, including EWEB, are negotiating with BPA on the terms of a new contract. In the future, BPA price changes could be recombined with EWEB rate increases.

There are no profit margins built into your rates

As a community-owned, not-for-profit utility, EWEB’s rates are cost-based. Setting new rates will help EWEB collect the necessary funds to cover investments in infrastructure reliability, inflation on raw materials and utility equipment, and increases in purchased power costs.

Final 2025 rate changes will depend on your classification, such as residential or business, and will be decided in December. We welcome and encourage you to contact your elected commissioners and participate in public board meetings. Learn how at eweb.org/Board.

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Budget and Rate Information
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As a customer-owned utility, we do not operate to earn a profit. Prices are based on the costs to serve our community with safe, reliable water and electricity.

Major projects
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We're continuously working to provide you with safe, reliable services, maintain utility infrastructure, and invest in system improvements that make your services better.

Public meetings
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The board holds its regular meetings on the first Tuesday of each month.  Commissioners welcome and encourage customers to come to meetings and share feedback.