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08/08/1988 Meeting (2)
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08/08/1988 Meeting (2)
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8/8/1988
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<br /> e Ms. Brody noted that EWEB did protest the PUC's decision to certify the <br /> boundaries. She said Metro Plan policies, while not being a deciding factor <br /> in the matter, do represent public policies that are adopted at the local <br /> level and are relevant. Ken Beeson, EWEB Engineering Manager, addressed the <br /> distribution feeder line issue. He said the basic design criteria for such <br /> lines is based on land area, zoning, and load. He said EWEB could place its <br /> feeders around the area and would prefer to do so. By choosing to go through <br /> the area, he said EWEB opted for the most economic action. <br /> Mr. Winnerfeld addressed comments that EWEB's service to the area would <br /> prevent rate stability to other LEe customers, and that the R.W. Beck study <br /> assumed the rate differential would remain constant. He said both statements <br /> indicate a misunderstanding of the methodology and process used to arrive at <br /> the results. He said the study used projections from the CH2M Hill study to <br /> make a detailed forecast for financing and investment requirements, and <br /> resulting impact on expenses and rates. He said R.W. Beck tried to look at <br /> all components from both utilities that go into developing revenue require- <br /> ments. <br /> Ms. Power said negotiations between the two utilities began in January and <br /> went through March. By that time, the two general managers had reached an <br /> agreement on general goals. Several months into the negotiations, she said <br /> LEC surprised EWEB with a requirement for a written agreement guaranteeing a <br /> permanent boundary for LEC as well ,as the right to serve within the Urban <br /> Growth Boundary. <br /> e Ms. Power said EWEB does not have the authority to sign the agreement. LEe <br /> refused to negotiate without such an agreement. EWEB has since tried two <br /> more times to initiate negotiations. She said negotiations still remain <br /> EWEB's first and best option for resolving the dispute. <br /> Ms. Ehrman asked about the additional 49 customers, Ms. Brody said they are <br /> currently within EWEB service territory, but have traditionally been served <br /> by LEC. Ms, Power said the 49 customers date back to the 1950s when LEC had <br /> lines closer to the area. Since then, the area has grown and customers <br /> moving into the area have become EWEB customers. The 49 customers are a mix <br /> of residential and commercial. Ms. Brody said it seemed appropriate to deal <br /> with this issue at this time. <br /> Ms. Ehrman asked why the customers have remained with LEC if they are in EWEB <br /> territory. Ms. Brody said there is no mechanism that allows for the change. <br /> Mr, Gleason said the issue with these customers has been under discussion for <br /> the last 25 to 30 years, He said a tentative agreement was put together to <br /> resolve the issue. However, he said that apparently fell apart when it got <br /> before the PUC. <br /> Ms. Schue asked what the current rates are for residential customers for both <br /> utilities. Mr. Norm Oakely said LEC has a current base rate of $7 and charg- <br /> es a 3.69 cents flat rate per kilowatt hour. Ms. Power said EWEB has a $5 <br /> per month basic charge and charges 2.9 cents per kilowatt hour, <br /> e MINUTES--Eugene City Council August 8, 1988 Page 8 <br />
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