Service Territory Realignment Study

Lane Electric and the Eugene Water & Electric Board (EWEB) have begun a conversation regarding whether changes to our respective service areas could benefit those we serve.

About the Study

Lane Electric Cooperative and EWEB are in the early stages of evaluating the future of electric transmission and distribution service territory in the McKenzie Valley. One possibility under the study is the potential realignment of some or all of EWEB’s service territory in the area to Lane Electric. This would not include generation assets such as the Leaburg and Walterville hydroelectric facilities.

The territory study encompasses approximately 3,000 EWEB customers between Thurston Road and Vida. Depending on the outcome of the study, these customers could become members of Lane Electric Cooperative.

The evaluation process is anticipated to continue through the end of 2025 and will include opportunities for public input to both boards. If a path forward emerges from this work, additional information will be shared well in advance of any changes.

Why Might a Service Area Realignment Make Sense?

EWEB and Lane Electric bring distinct advantages shaped by our respective business models. EWEB is structured to serve a dense, urban population, while Lane Electric is designed to meet the needs of rural, low-density areas like the McKenzie Valley.

Only about 3% of EWEB’s customers live in the McKenzie Valley, but this area accounts for approximately 25% of their total service territory. This imbalance creates significant inefficiencies—both operational and financial—that impact EWEB’s entire customer base.

A 2020 Cost of Service Analysis (COSA) found that it costs 14% more for EWEB to serve residential customers in the McKenzie Valley than the utility recovers through rates. These higher costs stem from the area’s distance from EWEB’s urban core, increased vegetation management needs, and logistical challenges related to maintaining infrastructure in a rural setting.

Lane Electric already serves communities from north of Vida to Belknap Springs. Transitioning the lower McKenzie Valley to Lane Electric could make more sense for everyone involved.

What Are the Benefits of a Possible Realignment?

Both Lane Electric and EWEB see potential operational and strategic benefits in realignment.

• Both utilities provide safe and reliable services at comparable rates.

• For McKenzie Valley residents: Potential benefits of receiving service from a utility focused on rural areas, and the ability to vote for and elect representatives to the cooperative’s board of directors, offering a more direct form of local representation.

Process & Timeline

Lane Electric and EWEB are committed to a careful, collaborative process, with a focus on creating long-term value for the communities we serve. The study is expected to continue through the end of 2025 and will involve a thorough assessment of key factors before any decisions are made.

What the Study Will Evaluate

• Infrastructure and Asset Valuation: Understanding the value of existing equipment and what a potential realignment would involve.
• Customer Experience: Assessing how a transition could impact service, reliability, and rates for customers in both service areas.
• Employee Considerations: Evaluating potential effects on utility staff and ensuring any changes support workforce resilience.
• Energy Supply Agreements: Reviewing impacts on existing power supply arrangements, such as those with the Bonneville Power Administration (BPA).

Public Input & Transparency

Throughout the process, there will be multiple opportunities for public input to both Lane Electric and EWEB boards. We want to hear from community members and ensure that diverse perspectives inform the study’s outcomes.

If the study results in a recommended path forward, we will share detailed information well in advance of any proposed changes.

Questions or Feedback?

We want to hear from community members and ensure that diverse perspectives inform the study’s outcomes.

General questions for EWEB: Email

Download Q&A (PDF)