Home utility costs to jump: 7.7% electric, 6.6% water rate increases in February, 4% more for BPA in October

by Aaron Orlowski, Eugene Water and Electric Board

Following months of public meetings and deliberation, EWEB commissioners approved the utility’s 2025 budget and rate adjustments at their Dec. 3 board meeting.

The $489.6 million budget accounts for the economy-wide inflation and funds essential projects to enhance the resiliency of Eugene’s electricity and water systems.

“Eugene depends on infrastructure that has served us for generations but is now at the end of its serviceable life,” said EWEB General Manager Frank Lawson. “We have a responsibility to ensure the reliability of these critical systems as our community faces growing demand along with increased risks from severe weather, climate change, and natural disasters.”

Since 2016, EWEB’s rate increases have lagged behind surging inflation in the electric and water sectors, creating a gap of approximately 20%. The 2025 budget and rate adjustments aim to bridge this gap while funding vital infrastructure projects, such as:

• Modernizing water storage facilities and substations to meet seismic standards.
• Preparing for a new water treatment plant to diversify and strengthen Eugene’s water supply.
• Upgrading the Carmen-Smith Hydroelectric Project to continue generating clean, low-cost power.
• Allocating funds to remove the Leaburg Hydroelectric Project, which no longer supports operations.

Starting in February 2025, residential electric rates will increase by 7.7%, with an additional increase in October tied to Bonneville Power Administration (BPA) costs. Residential water rates will rise by 6.6%.

For the average household using 1,600 kilowatt hours of electricity and 9,000 gallons of water per month, the combined rate increase will amount to less than $1 per day. These changes reflect the increasing costs of maintaining and modernizing systems critical for Eugene’s safety and quality of life.

Forecasts earlier this year projected a 15% electric rate increase and a 9% water rate increase for all customer classes. However, EWEB pared back these projections by using financial reserves to balance the 2025 budget and postponing some non-essential spending. EWEB’s elected commissioners further eased the impact on customers by staggering the electric rate increase: a smaller EWEB adjustment in February 2025, followed by a passthrough of a BPA increase later in the year.

Supporting affordability

Utility affordability is a key priority for EWEB. On average, Eugene households spend 3.4% of their median income on electricity and water, well below Oregon’s energy affordability threshold of 6%. However, EWEB recognizes that some customers pay a significantly higher percentage.

“It’s critical that we balance investments in infrastructure with the need to keep utility services affordable for everyone,” said Lawson. “EWEB’s locally governed structure ensures that we make thoughtful decisions to meet today’s challenges while planning for future needs without overburdening our customer-owners.”

Recognizing that affordability remains a key priority, EWEB will increase funding for its Customer Care Program by $275,000 to $1.6 million for the 2025 budget year. Each year, the program assists around 5,000 limited-income households with a $280 bill credit. Additional weatherization programs, specially tailored to low-income customers, are also available to help reduce energy costs.

Responding to a changing energy landscape

As energy supply and demand evolve, the costs of producing and delivering electricity have risen. 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.

The anticipated 4% BPA-related rate increase will be implemented separately in October 2025 as a pass-through adjustment. Future changes to BPA pricing may be combined with EWEB rate adjustments.

Community-owned and cost-based

As a not-for-profit, community-owned utility, EWEB operates without profits or shareholder dividends. All revenue beyond operating costs is reinvested in infrastructure, services, and community programs. For more information about EWEB’s 2025 budget and rate changes, visit EWEB.org/RateInfo.

About EWEB

The Eugene Water & Electric Board is Oregon’s largest customer-owned utility. Founded in 1911, EWEB provides water and electricity to approximately 96,000 customers in the Eugene-Springfield area. EWEB’s service area covers 236 square miles with a population of more than 200,000 people, including major institutions such as the University of Oregon.

A five-member elected Board of Commissioners governs the utility, which does not operate to earn a profit or to serve the investment needs of stockholders. Employing approximately 500 people, EWEB serves the people of Eugene by embodying core values of safety, reliability, affordability, environmental responsibility and community/culture.

EWEB owns four energy generation facilities, including hydroelectric projects on the McKenzie and Clackamas Rivers, and leads watershed protection measures with local landowners and environmental organizations. With one of the greenest energy supplies in the nation, approximately 90% of EWEB’s power comes from carbon-free sources, and EWEB is committed to achieving a 95% carbon-free energy portfolio by 2030.