‘EWEB must work with community to conduct overhaul of rate structure’

Eugene is in the midst of an affordability crisis.

Between paying for the rising costs of housing, groceries, health care, transportation and other basic necessities, working families are shelling out thousands of dollars a month, while incomes remain stagnant. This issue isn’t isolated to Eugene – people across the state and the nation are struggling to get by as inflation continues to rise and President Donald Trump’s tariffs further increase the cost of basic goods.

A May 2025 Asset Limited Income Constrained Employed report found that more than half of Oregonians cannot afford their cost of living. Adding to this financial strain, utility bills continue to climb, even at our publicly owned Eugene Water and Electric Board. Just a moderate increase to residential electric rates, such as the 7.7% increase that took effect in February and the additional 4% increase to come in October, can have significant impacts.

But we don’t have to accept these rate increases as inevitable. It’s time we change how EWEB is making these decisions and distributing the costs of our electrical grid. EWEB’s Board of Commissioners must work with the community to conduct an overhaul of its rate structure – and Eugene is the perfect place to lead on progressive energy policy.

Expensive energy bills can force Eugene residents to choose between keeping the lights on and paying rent, buying food and accessing health care. A study by the American Council for an Energy-Efficient Economy (ACEEE) found that 25% of all U.S. households experience high energy burden, defined as paying more than 6% of their income on utility bills.

And impacts of high energy costs are not distributed equally. The same ACEEE study found that households of Black, Indigenous and people of color experience disproportionate energy burden.

Fortunately, our city has an often overlooked advantage to fighting against these rising energy bills: Our local electric utility is publicly owned and democratically controlled. Unlike investor-owned utilities whose top priority is increasing profits for shareholders, EWEB is accountable only to its customers.

Increasing energy costs are not inevitable, but rather a product of decisions utilities make on who pays for our shared energy infrastructure and investments on subsidies to support energy efficiency upgrades.

So how can we leverage this advantage? There is a growing movement across the country to socialize the costs of maintaining the energy grid to ensure those least able to pay their bills are not saddled with the same costs as higher-income households. Specifically, advocates have been calling on the commission to consider a few options to establish expanded incentives and progressive rates, which prioritize benefits for low-income customers through a system that sets utility costs on what households can afford.

Here’s how it works. Rates generally consist of a fixed charge – a monthly flat rate that customers pay to maintain access to the energy grid – and a usage charge, a cost based on how much energy customers use in a month. Income-based pricing focuses on the fixed charge and creates a tier system based on household income to reduce that base charge for the lowest income households. At the same time, it increases the charge for those with higher incomes.

We already have a successful model to follow. Last year, California Public Utilities Commission established a tiered rate-making structure statewide. It set fixed charges at $6 a month for the lowest income customers; $12 for more moderate income customers; and $24.15 a month for the rest of customers. (EWEB’s current fixed charge is $30 for all residential customers).

These lower fixed charges can reduce bills dramatically for low-income houses, while still incentivizing critical energy efficiency upgrades across the spectrum.

Beyond income-based pricing, advocates have also proposed additional approaches to reduce costs, including offering a discounted rate for homes with heat pumps to incentivize high efficiency, low greenhouse gas emission alternatives to fossil fuel appliances. In recent years, similar policies have been adopted in Massachusetts and Colorado, putting these states on trajectories to lower energy costs and climate pollution.

Lowering base costs for low-income customers in Eugene is a no-brainer and an important first step in ensuring affordable energy. It is vital that we address energy affordability as we simultaneously push for an energy transition away from fossil fuels. Progressive ratemaking and robust energy assistance programs can alleviate the existing energy burden, while also ensuring that historically disadvantaged communities see reductions in future energy costs as Eugene homes transition from polluting fracked gas to renewable electricity.

The path forward is clear. Our city is fortunate to have a publicly owned utility. We must hold EWEB to the highest standards and ensure Eugene continues to be a progressive leader, setting models for others to follow.

Our community has an opportunity to join the growing movement around the nation. We can adopt common-sense provisions to reduce costs for our most vulnerable community members and socialize our energy system, all while transitioning our city to clean, renewable electricity.

What are we waiting for?