Preparing for the NEXT CENTURY - Eugene Water & Electric Board

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Focus on renewable power When Eugene Water & Electric Board customers say they want renewable Dawn Craig and Chris power Davidson converted to solar resources, water heat. the utility listens. Ever since EWEB initiated an extensive energy resource planning process in the late 1980s, customers have communicated with their utility through citizen involvement committees, surveys and focus groups on the issue of energy resources. Their advice: Invest in conservation, then pursue renewable energy sources to help meet the growing demand of consumers and help the environment at the same time. “In each process, citizen groups have concluded the same thing: conservation first, then renewables like wind and solar,” says EWEB’s Energy Resource Projects Manager Jim Maloney. The utility’s elected board and staff responded in numerous ways. EWEB currently spends 5 percent of retail revenues on conservation – one of the highest commitments to conservation among utilities. It launched a solar hot water heating program in the early 1980s, which has provided financial assistance and expert advice to more than 1,000 customers who’ve installed systems. It also has provided incentives and advice for customers wishing to install solar electricity (photovoltaic) arrays. In recent years, EWEB has embarked on a path to diversify its “portfolio” of energy sources, using $150 million in bonds approved by voters in 1992. Like most other public utilities, EWEB is heavily dependent on hydropower. Having a better mix of resources, particularly renewable energy, can help reduce the volatility of energy prices (such as during a drought) and help the environment at the same time. In 1999, EWEB, PacifiCorp and the Bonneville Power Administration partnered to build a 69-turbine wind farm in southeastern Wyoming. For the first time, EWEB customers could choose to buy wind power to support the project and test local markets for renewable energy products. As for the future, EWEB continues to look to invest in renewable energy projects that make financial sense or in promising research. As the result of the most recent update of the utility’s resource plan, EWEB commissioners in May 2006 dedicated UO’s Lillis Business Complex. ( ) “In each process, citizen groups have concluded the same thing: conservation first, then renewables like wind and solar.” – EWEB Energy Resource Projects Manager Jim Maloney 1 percent from electric rates to acquire new renewable energy sources. Earlier this year, commissioners agreed to purchase wind power from the Klondike III wind farm being built in northeastern Oregon and may buy geothermal power from a project under consideration in Idaho. EWEB also purchases renewable energy from the Stateline wind farm on the Oregon-Washington border and the Tieton Hydroelectric Project in Central Washington. In addition to supporting the Solar Monitoring Laboratory at the University of Oregon, EWEB also supported the Wind Research Cooperative at Oregon EWEB’s Wyoming wind farm (also top). State University in the 1990s. The utility continues to study solar electric, ocean wave generation and other new technologies. “EWEB’s energy resource plan is not a typical ‘least cost’ plan because the utility has multiple objectives guided by community preferences,” says Maloney. “The philosophy is to provide electricity for the Eugene community today and in the future at the lowest economic and environmental cost.”
EWEB: PREPARING FOR THE NEXT CENTURY 9 Focus on reliability Ever since the utility’s early beginnings 95 years ago, the people who run the Eugene Water & Electric Board have placed a high value on maintaining reliable electric and water service. Reliability of service and water quality are EWEB’s highest priorities. And for nearly 100 years, it has succeeded. The utility’s low power-outage rate ranks among the nation’s best, for example. The quality of the water consistently comes out at the top of various national or regional rankings. Customers think so, too. In the most recent customer survey conducted by EWEB, more than 90 percent of customers say electric reliability and water quality are high priorities for them. Ninety-three percent say electric reliability is good to excellent, and nearly 90 percent rank their water quality as good or excellent. “We know that reliability is one of the most important services that we provide,” says Jim Wiley, EWEB’s Electric Division Director. “When you turn the switch or faucet on, you expect electricity or water to be provided immediately.” But as EWEB nears its 100-year anniversary in 2011, utility planners are taking a hard look at parts of the electric and water systems that are getting older and showing signs of deterioration. EWEB has 1,200 miles of electric wires, more than two dozen substations and other facilities that need to be constantly maintained or replaced as they end their useful life. EWEB faces the same “aging infrastructure” issue for its 800-mile system of water pipes, reservoirs, pumping stations and water-treatment facilities. In 2004, EWEB commissioners approved a 4.6 percent rate increase devoted to upgrading the electric system. The rate action generates about $7 million in additional revenues that are being reinvested in new poles, wires, crossarms, substations and other components of the electric system owned by the citizens of Eugene. The added revenues already are being put to good use. For example, EWEB is performing a detailed inspection of more JOHN BAUGUESS than 20,000 power poles and is making necessary maintenance or safety repairs. In 2005, EWEB replaced 337 poles and 1,328 crossarms. Next year, EWEB’s oldest substation will be totally rebuilt. Willamette Substation, located near the river that bears its name, has served downtown Eugene almost since the utility’s beginnings. The substation is showing signs of old age, and many of the transformers, wires and other components are deteriorating at an unacceptable rate, resulting in periodic failures. Many of the larger “feeder” lines that extend out from the substation and serve entire neighborhoods surrounding the downtown area also are being upgraded. EWEB has advanced the timetable of the project to have it completed prior to the 2008 Olympic Trials. EWEB also has developed an ambitious capital-improvement plan for the water system. Many pipes and water mains date back to the 1920s and 1930s. EWEB needs to speed up the replacement and maintenance schedule on many of these older pipes to ensure continuation of the system’s high reliability. Over the next few years, EWEB likely will increase water rates, reinvesting the additional revenues in projects to replace aging pipes, rebuild deteriorating reservoirs, build up to four new reservoirs and improve the water-intake facility on the McKenzie River. The capital plan also calls for developing a back-up source of water in the event the city’s sole source, the McKenzie River, is disrupted. One project already under way is a connection to Springfield’s water system. This “intertie” will provide water to each city in the event an emergency limits one city’s ability to process water for customers. JOHN BAUGUESS
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Preparing for the NEXT CENTURY - Eugene Water & Electric Board

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