Ordinance No. 19575 - Laserfiche WebLink

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provide service to Willow Creek would be $2.65 million lower if EWEB serves the area. These savings are due primarily to elimination of duplicative facilities necessary to connect EWE~'s service areas which straddle the Willow Creek area and because EWEB's operating expenses are lower than LEC's. 7, EWEB presently services property to the north, east, west, and partly to the south of the Willow Creek area. EWEB currently has electrical substations .2 and 1.5 miles from the Willow Creek area. EWEB will construct electric circuits through the Willow Creek area to serve its present customers. EWEB must make this investment regardless of which utility services the Willow Creek area. LEC will need to duplicate this investment in order to serve the Willow Creek area. 8, EWEB presently provides the southwest area of Eugene with an urban level of electric service that is highly reliable. LEC currently provides a rural level of reliability for electric service to the area, with frequent and longer interruptions of service. In order for LEC to upgrade its f acilities to provide an urban level of electrical service to the Willow Creek area, it will need to make substantial expenditures. EWEB will be able to provide power to users in the Willow Creek area more cheaply than LEC and at lower rates. 9. The R.W, Beck report states that existing customers of LEC will not pay significantly cheaper rates if LEC services the Willow Creek area. 10. Under CRS 758.4701}, when a municipality condemns another person's equipment, plant ar facilities for rendering utility service, it acquires the utility's territorial allocation that is served by the acquired properties. Condemnation of the assets of Lane Electric Cooperative, Inc. used to provide electric service to the Willow Creek area is necessary to effect a reallocation of the service territory from LEC to EWEB. This reallocation will result in the least private injury to LEC if it occurs at the present time before significant investments have been made by LEC in electrical facilities far the area. ll. Attempts to negotiate a transfer of territory between the utilities have failed, Negotiations in 1971, 1979, and 1987 were unsuccessful. An agreement was reached in 1975 and submitted to the Public Utility Commissioner by the utilities. This agreement was rejected by the PUC and abandoned by the parties. 12. The policies of the Metro Plan, the interests of the citizens of the City of Eugene in economic diversification, avoidanc a of duplication of investments in electrical distribution facilities, the least cost and injury to purchasers of electricity, and improved marketability of industrial property Drdinance -~ 3