Item 3: EWEB Water Rights - Laserfiche WebLink

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Frequently Asked Questions Veneta wholesale water supply agreement Q: Why does EWEB want to sell water to Veneta? A: Two of the three water rights EWEB holds for the McKenzie are perfected, meaning EWEB and its citizen-owners hold those rights in perpetuity. The utility must demonstrate to state water authorities that it can put the volume granted under the third water right to beneficial use within a reasonable time frame. The predicted population growth and water usage within the city in the next 50 years will leave EWEB short of certifying that third right. Selling surplus water to wholesale customers such as Veneta will help EWEB obtain “partial certification” for the third water right. Such a certification would preserve EWEB’s ability to access 25 percent of the water granted under the permit. Q: If EWEB does sell water to Veneta, do the rights to that water also transfer to Veneta? A: No, EWEB is the permit holder and the water right would still belong to EWEB. Q: Will this agreement raise my rates? A: No. Treating and delivering water comes with high fixed overhead costs. Spreading those costs over a wider retail and wholesale base helps lower per capita costs and minimizes the magnitude of future rate increases. The cost differential to treat and deliver 60 million gallons a day versus 55 million gallons a day is marginal. The economies of scale EWEB has achieved in delivering wholesale water to utilities and water districts reduces per capita costs for all customers. Under the contract, the city of Veneta would be responsible for funding and building the 10-mile interconnection between its system and EWEB’s water system – primarily using county roads. Q: What happens to Eugene residents if there is a water shortage? A: In times of water shortage or drought, city of Eugene customers would have first priority to the water. The contract requires Veneta to maintain its existing wells as a secondary source of water in case of an EWEB water shortage or curtailment. A: Why is EWEB now deciding to sell surplus water? Q: The utility has been supplying surplus wholesale water to districts and utilities for several decades. Current wholesale customers include River Road and Santa Clara water districts, and the Willamette Water Co., and amount to about 8 percent of total sales. The utility has been working toward finding ways to perfect the third water right since 2004. Veneta’s need for water fits well with EWEB’s need to perfect the third water right and guarantee supply for future Eugene residents. Q: Where does EWEB get its water? A: The utility’s sole source of water comes from the McKenzie River. McKenzie River water is exceptionally pure and cold because of its spring-driven source high in the Cascades. Q: How will climate change affect water supply in the future? A: Overall, the McKenzie River is less subject to climate change than many neighboring river systems because of its spring-driven source and the large volume of water stored in that system. Most climate change scenarios indicate that the McKenzie River will be subject to lower late summer flows due to shifts in snowfall patterns. The research indicates total volumes of water into the McKenzie system will be roughly equivalent for various climate change scenarios, however the timing of the recharge to the spring system will change. Updated June 8, 2010