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QuickTake:
EWEB has agreed to a new deal with the Bonneville Power Administration to keep buying most of its electricity from BPA’s Columbia River dams. The deal will cost up to $3 billion.
The Eugene Water & Electric Board chose a new power contract to continue buying electricity from the Bonneville Power Administration, which operates 31 hydropower dams in the Columbia River Basin.
Nearly 80% of EWEB’s power comes from BPA. With its current contract expiring in 2028, the board needed to decide on a new, multibillion-dollar deal well ahead of time — essentially shopping for its energy mix.
Shopping for a utility’s energy mix is a bit like a restaurant sourcing ingredients. It’s about finding the right balance of cost, quality and reliability to serve its customers. And what’s on the menu may depend on the season.
For EWEB, that means planning how to meet customers’ extreme peaks on the coldest winter nights and the hottest summer days.
Commissioners weighed a couple of contract options, but ultimately chose a plan where EWEB actively manages its own energy supply, rather than leaving it up to BPA. The board also added a “peaking service” to help meet the seasonal demands.
The new contract is expected to cost $2.5 billion to $3 billion over 20 years.
Rates are not fixed under EWEB’s BPA contracts, which guarantee supply but not price. The rates EWEB pays BPA are passed directly onto customers and make up one of the largest line items on their bills.
