According to Lookout Eugene‑Springfield, the Eugene Water & Electric Board (EWEB) commissioners moved forward on a $502 million budget for fiscal year 2027, an increase of $14.5 million over the 2026 budget. The proposal would raise utility costs for most residential customers by about 7% in 2027.
Under the plan, owners of average‑sized single‑family homes that rely on electricity would see their combined water and electric bill rise by $18 per month, from roughly $257 to $275, beginning Feb. 1, 2027. Smaller homes with gas heat or apartments would experience a $9 increase, moving from $133 to $142 per month.
The primary driver of the higher budget is design and engineering work for a new water‑treatment plant on the Willamette River. The existing Hayden Bridge Filtration Plant, which draws from the McKenzie River, is 76 years old and is slated to be taken offline by 2040. The new plant, estimated at $431 million, would become Eugene’s second source of drinking water and is described by EWEB leaders as a “once in a generation investment.”
EWEB projects a 32% increase in the 2027 water budget—about $27.6 million—and says it will need to collect 15% more revenue from customers to cover the costs. Alicia Voorhees, EWEB’s Financial Planning & Analysis Supervisor, noted that “costs and risks are growing while federal funding is shrinking, and our customers face real affordability pressures.”
To mitigate the impact, the board plans to defer roughly $100 million in other capital projects, continue scrutinizing spending, and use long‑term borrowing to soften the rate increase. The budget also adds $100,000 for bill assistance at the “calculated need‑based level.”
Current utility spending averages 3.3% of median household income; the board projects that figure will rise to 3.5% in 2027. For a household earning $70,781 annually, that translates to $2,462 per year on utilities. More than a third of Lane County households already exceed the state’s 6% threshold for being considered energy‑burdened.
Commissioners defended the proposal, emphasizing the need for a second water source to protect the region against earthquakes, wildfires, severe weather, or hazardous spills. “If we didn’t feel it was needed for our community to build the second source water treatment plant… we wouldn’t be making these things,” said Commissioner John Barofsky. Commissioner Tim Morris added that the decision resulted from “many conversations” and was not made “in a bubble.”
The board also included funding for other infrastructure projects, such as rebuilding the Jessen Substation, decommissioning the retired Leaburg Dam, completing the new College Hill reservoir, and advancing dam safety and fish passage at the Carmen‑Smith hydroelectric project.
What’s next: The EWEB board will hold a final vote on the proposed budget on Dec. 1. If approved, the rate increase will take effect on Feb. 1, 2027, and the new Willamette River treatment plant will move forward in the coming years.
Sources: lookouteugene-springfield.com
