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08/08/1988 Meeting (2)
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08/08/1988 Meeting (2)
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City Council Minutes
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8/8/1988
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<br /> e Mr. Fadeley said the boundaries make sense if one walks through the area and <br /> looks at the geographic configuration. He pointed out EWES is the utility <br /> with irregular boundaries that do not make sense since it serves Weyerhaeuser <br /> in east Springfield, customers up the McKenzie River to Vida, and Lane Commu- <br /> nity College. In 1968, LEC applied to the Public Utility Commission (PUC) <br /> for a certified boundary. It was awarded that boundary after input from LEC <br /> and EWES as to what boundary would make the most sense. He said legal coun- <br /> sel for EWES stated at that meeting that the utility accepted the authority <br /> of the PUC to act in this manner. He said EWES is now looking to change <br /> those boundaries because the area has become economical and efficient to <br /> serve. <br /> Mr. Fadeley said LEC is willing to spend whatever it takes to meet the load <br /> in the Willow Creek area. LEC commissioned an independent study by CH2M Hill <br /> that found LEC can provide the service needed. He disputed R.W. Beck's <br /> findings that LEC costs are higher because of outages. Since LEC has started <br /> serving the Willow Creek Industrial Park in 1984, he said there has been one <br /> small outage due to a fault in the system. He said comparing connection <br /> costs is difficult because policies vary between residents and connections. <br /> LEC connection policies are liberal and usually low-cost. <br /> Mr. Fadeley said the R.W. Beck study did not factor in LEC's added costs due <br /> to a loss of anticipated load. He pointed out electric utilities are capital <br /> intensive entities. The piecemeal ,taking of territory hinders LEC's overall <br /> efforts to provide efficient and economic operations. He asked how LEC can <br /> efficiently plan to meet its load growth if it does not know where it is <br /> e going to serve. He noted that six years ago LEC had lower published rates <br /> and did not come before the council at that time and ask for EWES territory. <br /> He said the council should not transfer territory based on a variable such as <br /> rates. He said LEC questions the assumption that the current rate differen- <br /> tial will always remain the same. <br /> Mr. Fadeley addressed the issue of economic diversification. He said LEC <br /> would like the City to stop sending letters to LEC customers that are inaccu- <br /> rate and disparaging of its service. He said the pace of economic diversifi- <br /> cation is not enhanced by inaccurate statements about service reliability and <br /> ability to serve. LEC has a proven record of service reliability. The CH2M <br /> Hill study states service is available from LEe for the projected load <br /> growth. Of the 20 prospective businesses noted earlier by the Metro Partner- <br /> ship, he said only three from the list considered locating in the Willow <br /> Creek area. Of those, two did not choose to locate in available light indus- <br /> trial land served by EWES. <br /> Mr. Fadeley said LEC negotiated at length with EWES. He said EWES rejected <br /> several alternatives including interconnection, territory swapping, and a <br /> provision that would let EWES serve ~he industrial park with some degree of <br /> permanence. He reiterated his request that the council provide additional <br /> opportunity to receive information. He said LEe would like to be a full <br /> partner in the area's economic development. <br /> . MINUTES--Eugene City Council August 8, 1988 Page 5 <br />
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