08/08/1988 Meeting (2) - Laserfiche WebLink

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e Ms. Brody noted that EWEB did protest the PUC's decision to certify the boundaries. She said Metro Plan policies, while not being a deciding factor in the matter, do represent public policies that are adopted at the local level and are relevant. Ken Beeson, EWEB Engineering Manager, addressed the distribution feeder line issue. He said the basic design criteria for such lines is based on land area, zoning, and load. He said EWEB could place its feeders around the area and would prefer to do so. By choosing to go through the area, he said EWEB opted for the most economic action. Mr. Winnerfeld addressed comments that EWEB's service to the area would prevent rate stability to other LEe customers, and that the R.W. Beck study assumed the rate differential would remain constant. He said both statements indicate a misunderstanding of the methodology and process used to arrive at the results. He said the study used projections from the CH2M Hill study to make a detailed forecast for financing and investment requirements, and resulting impact on expenses and rates. He said R.W. Beck tried to look at all components from both utilities that go into developing revenue require- ments. Ms. Power said negotiations between the two utilities began in January and went through March. By that time, the two general managers had reached an agreement on general goals. Several months into the negotiations, she said LEC surprised EWEB with a requirement for a written agreement guaranteeing a permanent boundary for LEC as well ,as the right to serve within the Urban Growth Boundary. e Ms. Power said EWEB does not have the authority to sign the agreement. LEe refused to negotiate without such an agreement. EWEB has since tried two more times to initiate negotiations. She said negotiations still remain EWEB's first and best option for resolving the dispute. Ms. Ehrman asked about the additional 49 customers, Ms. Brody said they are currently within EWEB service territory, but have traditionally been served by LEC. Ms, Power said the 49 customers date back to the 1950s when LEC had lines closer to the area. Since then, the area has grown and customers moving into the area have become EWEB customers. The 49 customers are a mix of residential and commercial. Ms. Brody said it seemed appropriate to deal with this issue at this time. Ms. Ehrman asked why the customers have remained with LEC if they are in EWEB territory. Ms. Brody said there is no mechanism that allows for the change. Mr, Gleason said the issue with these customers has been under discussion for the last 25 to 30 years, He said a tentative agreement was put together to resolve the issue. However, he said that apparently fell apart when it got before the PUC. Ms. Schue asked what the current rates are for residential customers for both utilities. Mr. Norm Oakely said LEC has a current base rate of $7 and charg- es a 3.69 cents flat rate per kilowatt hour. Ms. Power said EWEB has a $5 per month basic charge and charges 2.9 cents per kilowatt hour, e MINUTES--Eugene City Council August 8, 1988 Page 8