EWEB to Mitigate 2025 Rate Increases to Reduce Customer Impacts
EWEB is taking steps to lessen the financial impact of upcoming rate increases for electricity and water services in 2025. While facing rising costs associated with providing reliable utility services, EWEB has committed to minimizing the burden on Eugene residents and businesses.
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, through careful financial management and cost-saving initiatives, the projected increases have been reduced to 11% for electricity and 8% for water.
At its public board meeting on October 1, 2024, EWEB's elected commissioners took further steps to ease the impact on customers. The Board approved a plan to stagger the 11% electric rate increase over two smaller adjustments: 7% in February 2025, followed by a direct passthrough a Bonneville Power Administration (BPA) rate increase in October 2025, which is currently forecasted at 4%.
The average EWEB residential customer pays $43 a month for water and $190 for electricity. The combined rate increases for electricity and water in 2025 will amount to less than $1 per day.
“As EWEB works to ensure the long-term reliability of essential electricity and drinking water services, we recognize the financial challenges many Eugene residents and businesses are facing,” EWEB Chief Financial Officer and Assistant General Manager Deborah Hart. “Our goal is to control costs, operate efficiently, and reduce the size of the rate increases. By spreading out the adjustments, we aim to lessen the financial impact on our customers.”
Like many goods and services, the costs of producing and delivering electricity and water are rising. Although most of Eugene’s electricity comes from low-cost, carbon-free hydroelectric power, buying that power — particularly from BPA — remains EWEB’s largest budget item, accounting for nearly 40 cents of every dollar collected from customers.
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.
“Today’s energy landscape is turbulent, driven by a complex mix of demand pressures, supply constraints, policy shifts, and technological innovation. The future of power supplies and costs remains uncertain,” said EWEB Chief Energy Resources Officer Brian Booth. “A new contract could significantly impact power prices and how those costs are passed on to our customers.”
As a community-owned, not-for-profit utility, EWEB’s rates are cost-based. There are no profit margins built into the rates customers pay. Setting new rates will help EWEB collect the necessary funds from customers to cover ongoing investments in infrastructure reliability, inflation on raw materials and utility equipment, and increases in purchased power costs. EWEB plans to invest nearly $120 million in electric and drinking water infrastructure in 2025 and about $1 billion over the next decade to address aging infrastructure and increased risks of natural disasters.
Final 2025 rate changes will depend on a customer’s classification, such as residential or business, and will be decided in December after multiple public meetings. EWEB customers are welcome and encouraged to contact their elected commissioners and participate in public board meetings.
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