What are EWEB’s procedures related to large consumption customers such as data centers?
Communities across the Pacific Northwest are grappling with requests from large consumption customers such as data centers to connect to local electric and water systems.
EWEB has procedures and processes in place to ensure that we treat interconnection requests fairly and impartially, and that large consumption customers don’t pass costs on to other customers.
We know cost and affordability — for both power and water — are a significant concern for our community. These priorities are central in every decision EWEB makes, including how we respond to requests from new large energy or water users.
Frequently Asked Questions
What is EWEB’s position on data centers?
EWEB generally has an obligation to serve customers who request service within our territory, provided certain conditions are met — including that the customer covers the cost of any infrastructure required to serve them, pays rates based on the actual cost of service, and meets our standard technical review for system capacity, safety, reliability, and clean energy targets.
Do residential customers subsidize large consumption customers?
No. Large customers already pay their own way. EWEB applies different rate structures to large commercial and industrial customers, designed to ensure large consumption customers cover the costs to serve them.
Will my rates go up because of data center development in Eugene?
EWEB’s rate structure is specifically designed to prevent this kind of cost shifting. We apply different rates to large commercial and industrial customers based on usage and service needs, which ensures they cover the cost of the infrastructure required to serve them.
A larger customer base can help spread the costs of maintaining the system more broadly among more customers, though any benefit depends on how a project is structured and served.
What is EWEB’s role related to economic development?
EWEB was established in the Eugene City Charter for the principal purpose of providing water and electric service to the public. General governance issues such economic development and land use reside with the Eugene City Council. EWEB’s formal role in economic development is limited to requests for utility service.
Do recently passed state laws that govern utility rates for data centers apply to EWEB?
No. Oregon’s POWER Act and the FAIR Energy Act only apply to investor-owned utilities regulated by the Oregon Public Utility Commission, like Portland General Electric and Pacific Power, and are aimed at more transparent, accountable, and fair rate-setting, including new protections specifically for how data centers are charged. As a community-owned, not-for-profit, locally governed utility, EWEB customers already benefit from similar protections that already exist through our local rate-setting process and Board oversight.
A developer has asked the City for a “zone verification request” at the former Hynix semiconductor manufacturing facility. What is EWEB’s role in this situation?
Land use and economic development decisions belong with the City, not EWEB. EWEB does not have a role in the City’s current zone verification request. If the City determines that a data center conforms with land use and other policies and regulations, then EWEB has an obligation to serve that business, so long as certain conditions are met. Those conditions include covering the cost of infrastructure required to serve the customer, paying rates based on the actual cost of service, and meeting our standard technical review for safety, capacity and reliability. Visit the City of Eugene's website.
What review process does a large energy or water user go through before receiving service?
Any potential buyer would need to go through EWEB’s standard required technical and financial review processes. These include studying whether the grid can safely handle the new load, before receiving power from EWEB, as well as determining compliance with state and local clean energy policies. EWEB would also need to meet external processes for technical review and potential system upgrades from EWEB’s transmission provider, the Bonneville Power Administration (BPA). A similar review would apply to assess water system capacity and infrastructure needs.
