ML20205C286

Eugene Water & Electric Board,1985 Annual Rept

ML20205C286
Person / Time
Site:	Trojan File:Portland General Electric icon.png
Issue date:	12/31/1985
From:	Pratt C EUGENE WATER & ELECTRIC BOARD
To:
Shared Package
ML20205C235	List: ML20205C229 ML20205C250 ML20205C286 ML20205C305
References
NUDOCS 8608120298
Download: ML20205C286 (37)

Text

.,...._

..,,,c'..

..y_.: . . .

v....

hEUGk ATER R

. .[, r * . . .h _.

p+ . _',. ;.. ,  ;

_ : - v ' .: .0,.

>P( 4 .

< - " - 3 r,.H [. ...}

- g ; q' 1 ...

.[, . , . -

. . 3.

..;t a

~

a. 2 .

-  ?. k? M. '.. w.4 v< q,. :f%'s'5%

s

.: p 'pp t <  ;.

• '. .; ' .})i :.;l*&

.;, 4

. ..- .-- . , . A , 3 yy  ; ,

. O 's * .' ' ' .- - . .. lj .l ' ..I~

e :b . . ; ;*L ..

r.v.a. : . - in .."' .

.y

. . n. ....

1 >

, ;,m - .g , p,, .

4

. y [; k '.?;' . .:.*.. ? k*%?g**l'{' p Q

..  ; y

.. a. . ., -

3.... : . . . .

.,.s

. , , + ..n ,.. ..

. . ; . 7. ....- . . ~. 9. .y. . .

3 :. .

4  ;. .

.z.

. v 4.. ;. p , .

_ ; . y ;,

s ; y 3. ; A ,_ g. e~. . . R y 3. ; , .

gg_: A.c. .3 MM. ,  ? .: 4: . wyng.? ~

'V .

.a3

~

. . g & .:. g... ,.. . .,  : .. v r, *> : :

.c v.,_g +~ A. v. g;. . . , c,k,.

s._.s,y.

... . : . .... ...u. , ,

. ,. e. .s.

'3 - . . ,s.

p , j' ,4, .,i . gw$.

.- 1 3

..4 , . *- .

u,, g a . ,. . .. .,,.y

.[

r 'i, s,

} 4 4 p,p e " 9gst , - _ ,

{ .s > . . - n*..

4% y _

q .g . D h .L b 8 -

)

yg %A g ii r.yk 4p; f g y t ~0.y a p 6 ,$g .y .y,.; .

?-o. . ', ,J 3 . - ... .y

.sy

== - y. y yg,.g ; t.

,- ..

. .e .;.. ,

... . x.- .;. wp. , p . m. . m : . ,.  :

, b.v

,l.,4. W. . fe .E $ [. '

I .%! ? sr ' ; , .N';'k

.e .

- , f ' T hg^

• _f,p.s.p.

r.

'I.

., .v yi. .. . 3 g

.u

.,< ..x, ,,. ...

,l.e;

.. . _ .. I ry: ;? : -

. l* o

%. + w. +

A...w .j.

4;e  ; ; sx

a. m. ,3.,,M;:a

, 3.. k ..

.s.4 em. : 8.k: + .a.s n A.v.+ n. .m,. . y x g ; .i .s. ., ;y

.mr.. . . . . .

g 3 p .c : x ..

.; 3 g,y

r.:ay:p:

&:  ; ,g}g;;w.;py,u.. ,. _ . 3 .,: ;,. . . .

; .

; .g. . ~ ,e.

(

/-...

, . s,. 4. n.gv

., y _.y.J b. 3 j p.g,; .g 4,. - . ..,[

y ..

j.*3 . ; ., , ., . a .g

.-rm . . , g ,.

- ~

c9 .

x .- -. .

,8 e n yxd

. . . . u ,g. s. ;.g. : a %; O ; y . - ! .

~.

- p,f wr c. 4,

', . *h >jW.;'*

, If e ,.

'Q%:w/.h.A f k yM g.en$;; % , y4 . N' . {. [ } N. ?. . - 3: .,. y3F%y%,ff.&g.

. ;y- py a y a ypj

.:.  % s. .;

.y.  ; n.-

,,+y g ;..,.

-. 2,,.

4, . s '.g. . . .

. .~

3 .. .. ..

,.rt g:';p)$

gMg:,

<- M . .,. T f:. .

.- e j ,. g .: - {-

.L,.

y N- ,.

.fr e*g ; - . .. Q

.g

, 1 ~3

. . .. .. .g. .. . ...

. e .>i ,, e,q

+' ,

.A t ,g: M,..s M%:wm W efN%., ,**;p %, .

2 ee -

g.

~ ~ L.,q

'N

+ mg '(.,Q ,,v ,

, g

,l.% ,~,g.p * #

• 4 es ,

,,, i ,

. _ r,

%KyA;g.

v .,

• g qa Ug6p u

• f l "'NRwsy!

e

,% M n %. ** m i .. .

• • • ~" , *Af *-

[ 'p ..bL. '% <s* %

Ewa

-n-2,.,

, der'**ut,%,

w] n m " syt,

.h ,45 j ,, Q l; ~C f*Ct'i$eWm %  % g

+w*s .

K sr W %; D.g,{m A .n%, *% &

.g 3 g ' .e (q , -.Js,e. .w:e ' -

" v

,,,l.. f~

e b5 a 4%g g,,s k

.. 4.

M

• A

' , Kf. 4 4* es g s

.ws e , y j -

,r4~e l , %,,t,* s Q-ps C A%

4 %*

c W ,. ~~ r.y,~ ;,. g+ , a".

='** , = % 7:q%q -

w w~

p 4-

_~y s y**$

. s;m , . ,o

,* gr.ma g e, & , .1mm p :: +-, tv s .

. f

.u y y <,.~*:: g y N L '

C* .

,

• i

~ .

ff' b ,

• ~

~

~ y

m. ._, .%g * "

35 $, ~

.s N 4 W; ^ .

- s..

t ;,

~

1.

%',~J" v$ O(QR ~

I  ;

~d : 1

/ Mi .

] ! WZ%g  % -

". ,. . ;, la% .4

~wAS 7 & . v > f y: ~

R' ;* . , 5 - -

s**ml%f- lW'Em,*K.

wr  % % Q: M ,

r. e W ,&,

-., b ,:i.K

~

.M,wf- 4., h,?%$U' W ',p

.s- e "

i= 3*L,Qs* ,, ,..,,

4^qr &: [c ** - 4 ,.

> . %, c r ,..

• e ~,1 3- .,

g.,4. .

N, n '6*

f ji" .

.>, ?~ 2 .:"*% ( * -

Ai

--f 7

• r

,- f'.s ' -

'p,*sV {; s sy

-' y x.,,+,

~ . . - ,(;~r.

<  % c",,R g.,n w>

w

.o m, ,% , *,

1,+ ,w n r 7'if,~

.'Lj":f,',;F*

'y

• ,,QM; '] $.a O" *f Y ,

%- ' 1h m .y . - r

.. %*s kN#L2ty. .;, - * !'.h rN'*

x.

g vt.ifW' kV?&.. . >,m.::~ ~

u#.:ng: 8%

m.NAI'7,d s &w/a:, khlhp, nt[:." d b. rE:&EpY lr si p n.:yvn.c@r,y,+n 4 j M' ,,e Y, I ~ '

C.,

M 1

J' '

n;~ h D m*a.

ar3 ~ % a . ;,' ' : c. . .

f L : &, cueL f ': . rA'.

p . f; ,, g** apassiW -:2 p,a.' MAllb Q, ' ., ;

~

~ . >

FINANCIAL HIGHLIGHTS

.r (thouunds of dollars)

ELECTRIC UTILITY awuama n.pn r en> inn 1933 1934 1933 1932 Tor the Tiar Gross Operating Revenues 69 463 62 114 59 500 57 07o

Net Operating Revenues 6 673 5 461 14 615 14 308 Net Revenue 3 882 2 978 12 274 13 190

, Capital Expenditures 8 991 4 550 7 451 3 933 f At Tiar Fnd Net Working Capital 16 361 20 875 20 489 19 793 Long-ferm Debt 39 132 24 424 26 414 28 199 Retained Earnings 120 501 116 619 113 641 101 368 WATER UTILITY 1935 1934 1933 1932 For the Year Gross Operating Revenues 6 652 6 220 6 096 6 512

., Net Operating Revenues 1 523 1 238 1 153 1 819 Net Revenue 794 434 68 882 CapitalINpenditures 1394 750 579 1 189 At \i'ar End Net Working Capital !909 1 765 1 353 1207 Long-Term Debt 11 936 12 430 12 895 13 144 Retained Earnings 15 813 15 014 14 579 14 512 HOND RAT!NGS Standard &I%r's AltuhisInmtors Corporation Service Electrie Utility System Revenue llonds AA+ Al

/ Electric Utility System Conservation ilonds AA Al Water Utility System Revenue lkinds AA Al Trojan Nuclear l'roject Revenue lionds AA A1

Eugene l\ilter & Electric Iloard 5@ East Fourth Avenue l'.O. Ihn 10118 Lugene, Oregon 97410 (503)481 2411 I

f ler wu e .4 bus 4< r e wv.

Ilw eu to*wn! of the % konw h rr onnly a few Indre,I h e t tran Ihr I hl th llav,le et Mrkl;r uwto nntair

.I

BOUNTIFUL McKENZIE 1, The Story of the Eugene Water & Electric Board I

[ '

,f By Norman F. Stone -

Newly published is this well-written and highly informative 245-page history of EWEB. /

The book is written by Norman Stone who /

retired in 1983 after 27 years with EWEB. first li as personnel manager and from 1971 as diree- #

tor of administrative services. Bountiful McKenzie has more than 130 photos and /

identifies the people involved in many of the j decisions and actions involving the utility. A /

comprehensive index makes the book easy to -

use for reference and historical research. d'a g .g "As you read this history you will learn about many of the people and events that f _ w- W QD' y jgg  :'

- ?..'Mfu %yy.yfl~

played a part in the evolution of EWEBfrom its valiant beginnings to its present leader- y <~ f Q '-f 'b f. }~ -M mL

-  % y{

ship role among the public and private uttil- '

y" F{-' &y R R ties in the Pacij1c Northwest," writes EWEB -

President Camilla Pratt in the book's forward. - U 4' "The result of[Mr. Stone's] work is a '~' -

thorough, honest and impressive review of y EWEU'sfirst 75 years."

Copies of Bountiful McKenzie may be ordered for S12.95 each by filling out the l order form below.

Ordcr Form for BOUNTIFUL McKENZIE Name Mailing Address City State Zip Number of copies @ S12.95 ea. Amount enclosed S Make Check payable to: Send order to:

Eugene Water & Electric Board Edie Warner Administrative Services Eugene Water & Electric Board P.O. Box 10148 Eugene, OR 97440 u

i 1i  ! 1 ' ' ' '^' ' ' ' ' S ' ' ' ' * ' ' '

, , i . , ,

'EWEB'S i '

, , . . , , ,  ? . . . .

! 1 i j v , ELECTED COMMISSIONERS :  ; i 1.  ! ,  !

; i ,

i

, . . , , . . . , , . , , . , , , , , , , , , . . , . t ,

f f l 4 { j ' l l l f i  ! i l l l 1 i <

? I

• i + + + t i f

1. - ' ' # ' -' ro'm file rards oflocal' usi' # * ' ' ' * '

• b ness,"governm*ent, Education'and profe'ssional i I -

i / # . enterprise, 't h ese peop el have sought the challenge of shaping EWEB to best !

^

t i / * *

• f + -. > r a serve the community., .. r , . * *

• 1 , , , , + , . ,

, , j j g j While KWEB's first five Commissioners were appointed, all subsequent ; # ,

j  ; , f Boa'rd members* have' been

• elected '

by Eugene' voters l And ' all '

have ' served ' ' ' ' ' ' ' ' '

withoist pa'y. ,

i I

?  ! -

i  ! Each EWEB Commissioner is elected to e four-year term. Many Commis-r i * ' * ' 4

• r , . , :sioners have chosen to seek re-election; some for a series of consecutive terms. . i . , , , ,

'.. , An especially, notable example of this dedication is John Tiffany, who in 1984, i

j , ~, j y . , j ,

f

• ' ' ' ' ' retired from the Board after more than 22 years of service; BoJrd*'for EWEB history. Mf. Tiffany s'erved as Vice President of the

' threethe ' ' longest ' ' tenure ' 'in 4 i  ! +

/. f years, before becoming Board President in 1968, s position he held for 17 ' years. / i  ; /  ! * /

lF. '. . v . , . , Committed and Effective e EWEB Commissioners have continuously , .# . , , i r #

l, 4 g . .

f shown the foresight necessary to guide the utility through a maze of obstacles, ', 'j ; ', , f j from major national issues to the kical growing pains of a developing city ' *

'Again an'd agafn, EWEB'Com'missioners have been called 6pon"to make tbugh* ,

+ - + 4. + +

decisions and to develop strategies for meetin~g future challenges. That these 4 -  ! t  !  !  !

, r , , , , 49 people have done an excellent job is a tribute to the people of Eugene. Local e , , , , , ,,

, , , , , , vote,rs have consistently; chosen Commissioners )vho phare a wjllingness,to , '

f , j j j y '

advocate for th'e highest level of customer senice. -

' ~'

• Evefy EWEB Comn'iissioner,'past'and prese'nt, h*as sh'ared'in a (ital process:

i i 4 guiding the destiny of a modern public utility. The job has seldom been' easy. 4 i i *  ! 5

+ - -  !

, ., , , o :But the commitment of time and energy has helped ensure EWEB's high level- , r , , , ,  ;

', , j , of national recogniti3n for efficiency, low',ratep, innovative p,rograms,yndepen g j , , j dence and progressive planning. '

' - As the Boaid members sh' ape and niold the f6ture'of EWEB,' the Eusto'mer is,

, 4 - + i -as always, the primary beneficiary. That's the reason the Board was originally e i j i f i <

, , , , , . created in 1911. And today, with welcome customer input and participation, , , ,. , , . ,

the Board continues to represent and further EWEB's basic purpose of p'roviding '.

,'s "Ekcclient Shrvicc at Eow Cost."

r e , - r > > a - , , , , e r . , , e a , o e a e e 4

h i h > 4 s

• h *

• 6 f } { y" ^ k i N $ < l 9 ,N h h Y ,)

+ 4 r a r r I e 9 a o e v 9 y a y p + + r + e v V 9 9

• 9

& *

• 3 *  ! h f f l + f 4 A N $ f h  ! 9 b _$

1. f a o. . r e

• a o e o e

• v r y a y <

r n' r r > e r o o r y a \

< * * + s i i f s + . ,

l *

• 4 + l l l l # f l t I

> o a o - r e o r ,

> > . + < e - o o r , , e o , , o r r 9  !  ! * $ 9 *  ! f f f l v h l h 5 y f I k f f f r + - + o e > > - e o a e a e o r. o e o e r e e r r e e o h t 5 $ f f } . n * + y 4 k  ? 9

• 4 + 4 h $

f f h l f ,t y e e o > > o > v r o r w * *

• e e e  ? o o e > a e o s a 3 k' & h

• 5 f f 4  ?

• *

• A + f i f- b h t h 5 A h f k f )

> V  ? 9 9 7 > *

• F F r F F 9 9 &

• 9 9  ?

• 9 9 9 9 *

• 9

. , , < . .  ! . + + i  ; 1 , i e 9 6 i +  ;

i a  ! < + r i r a e e + r e r > r a > < r r- r > o e p r. r p p y

• r p. *!

l 7 & l *

-h

• f  ? f '$ * + f h l 5 t . k- 5 f f f $  ! h h .\

.e a e p s. r s e r > r o r e r e r p r o *

• r o r o r o  ? ,

$\ 't 9  ! f f $ f b  ? + 4 *

• f 4  !  !  ! '! +  ! f l h- h $

fl r- r ^ r ~ r > r

• s o e > > o e o r e o e  ? r r > r r

• r r >

9 *

• 5 i 5

f. l l 5 4 5 9 l [ l l f 5 f '! i h f $ $ $ $ t

• 9 s

• y  ? 9 e p 9

• p s a p a 9 r

• r r 9 9 e

• 9 9 e .0; I h  ! t 5

• h 9 i *

{ $ + h ) v 5 4 Y $ .N e f N f f l f b r r -r o e r * .s e .* s r r y e r  ? p + r r s o p s .* r p a

? f A h h h h k f h l 7 _f h. f $  ? f f f. $ f

• v. r r r e r  ? > r > r r r w a s e o o r r a r o r o e e j F ~j i j

.i l + i i l j. + l ./ l l ./ f +. l l l + l f fi j '\

• J 9 't 9 t .? 9 9 .* 9 9 ~p p P. p 9  ? s t .9 9 9 9 t  ! 9 9 9

+ '

TODAY'S BOARD - -

I a 9 Y W / 4 4 y I  !

Dennis L. Solin -

Dr. Sarait S. Hendrickson Commissioner Solin was Commissioner Hendrickson l

i g elected Vice President of the Board in January 1985.

was elected to the Board in 1980, representing City Wards W Appointed to th Board in  : 6 & 7. She was re-elected in 1982, he also won election -

~

< .. 1984 to serve the 1985-88

' K' ^

that year to the 1983-86 term : term of office. Commissioner t representing City Wards 4 & 5.

~

Hendrickson is a family A certified publicaccountant, physician with a private Commissioner Solin is a principalin the Eugene practice in Eugene. She is a member of the Ameri-accounting firm of Babcock, Solin, Johnson & can, Oregon and Lane County Academies of Family Oberlink. He is also an active member of national Practice. She has chaired the Lane County Medical and state accounting associations, and has served Association's community health committee and has as a member of the Lane Council of Governments, been a member of its executive council. Commis-the Lane County Parks Commission and the sioner Hendrickson is a member of Eugene Profess Willamalane Park & Recreation District. 4 sional Women's Network, and is northwest representative for the women's issues committee of the American Association of Physicians for Jack /. Craig Human Rights.

1 Commissioner Craig was elected to the Board in 1978, serving the City at Large. He Dr. James E. Reinnrutir was re-elected in 1982 for a Commissioner Reinmuth term which expires the end won election in 1984 to serve

/

of 1986. Commissioner Craig the 1985-88 term of office has served as an Oregon representing City Wards 1 & 8.

State Legislator and as a Commissioner Reinmuth is state legislative administrator. He is a past president p<4 Q the Dean of the University of of the Lane County Health Council, a founder of 'g["j Oregon's College of Business the Lane Demo Forum and a former member of the Administration. He is a Lane Transit District Board of Directors. C,mmis- member of the American Institute for Decision ,

sioner Craig is a journalist and a freelance advertis- Sciences, the American Statistical Association and ing and public relations consultant. the Institute for Management Sciences. He has authored six books and numerous articles relating to strategic planning, forecasting, marketing, plan-ning and leadership. Commissioner Reinmuth is also active in a number of local business endeavors.

l Directing Oregon's largest publicly owned utility is a tinte-consinning and l challenging task. EWEB's five Conunis-sioners are dedicated to their responsi-bility and provide broad expertise, while serving the conununity without pay.

N 4 0

. p # " " " ""*= %

k AYOR, COMMON COLINCIL, e#

Cmzu~sOvutiac~c Cann.lIn P. Pratf  ;

,?

gSLECT, Enene water & acceric soars on Commissioner Pratt was htarch 11,1986 celebrated 75 years of

- y elected President of the service to the community. Throughout these

1. 75 years, EWEB has been recognized by its cus-Eugene Water & Electnc '

tomers as being a responsive, efficient, progressive Board m January 196' / utility-a provider of highly reliable service at costs among after serving as \ ice #

the lowest anywhere. EWEB's low-cost power and pure President for six '

water have been a major contribution to the quality of life our rs. Sh j ned / community enjoys. The credit for this excellence belongs not only

"' 9 to the nearly 50 citizens who have served as EWEB Commissioners and was elected m. 1984 to her third f and to hundreds of hard-working employees, but also to the commu-term (1985-88), representing City nity as a whole. It is the people's support for independent local control Wards 2 & 3. Als. Pratt is vice chair- 4[of th'e electric and water systems and for development of cost-effective manof theOregon RecreationTrails y resources that has enabled this utility to achieve its mission of providing Advisory Council which advises j ,, Excellent Service at Low Cost."

the Oregon Department of Trans- y portation. She has also chaired 4 Among the many examples of how the people of our community have played a crucial role in helping assure low-cost ser ice for themselves and for future an advisory committee for the [ Mzens was the voter approval nearly 30 years ago of revenue bonds to finance

. Oregon Department of Energy. f the Carmen-Smith Hydroelectric Project. Through its generation of low-cost elec-Oreg s j 3 tricity, and th' rough the operating flexibility it gives EWEB in the wholesale power r it- 4 I marketplace, this project-along with the Leaburg and Walterville Hydroelectnc International Studies Pro-gram and is secretary to F l Projects-has helped keep EWEB's rates among the lowest in the nation.

the program s director and I g Another example of the community's support for cost-effective resources was the associate director. two-to-one voter approval in 1983 for financing the home weatherization program with

! revenue bonds. EWEB became the first utility in the nation to issue bonds solely for yb a

the financing of conservation programs, and this unprecedented action will help thousands of customers reduce the amount of energy needed to heat their homes. At f I the same time, their savings are helping EWEB hold down costs to all customers by re-3 ducing the amount of power purchased from the Bonneville Power Administration and 9

by delaying the time when the region may again need to build new generating plants.

Ir 5

( In hfarch 1986, Eugene voters approved by better than a two-to-one margin the

, f I development of another resource which will enhance EWEB's service and efficiency g for years to come. This resource is the Energy N1anagement Control System together with other electric system improvements, including those called for in the Headquar-a ters Area Master Plan. Customers will receive both immediate and long-term benefits j as EWEB achieves lower purchased power costs, greater operational efficiency, y x increased employee productivity and better customer service through consolida-g* u" I

tion of its central operations. These benefits will increase in value each year as 4

n the utility is better able to meet the needs of the growing number of customers.

Qe'/ s, '

It would have been easier for the Board and the staff to ignore this opportu-nity for efficiency and savings, just as it would have been easier not to de-s velop the Carmen-Smith Project or the unique conservation bond financing T 1 plan. However, EWEB has not attained its high public standing by doing

~

u, what was easy, but by doing what was best. This is what EWEB customers T have come to expect from their utility.

t The past year has been filled with changes and accomplishments.

In January 1985, a new Commissioner joined the Board, new Board officers were selected, and Jean Reeder was appointed Acting General Manager. Following a six-month nationwide search-which attracted over 60 applicants-Ms.

, Reeder was unanimously selected to be EWEB's

% ninth General Manager.

Large-scale, long-term planning was a major focus at EWEB in 1985. The Board's goal-setting

. ;FIVE _-

R

m

%g en, . m I t bruaiv and Nhicet planning workshop in Nr a cre instrumental m assurmg tha: new itic,b and approaches u ould make i n t en more etlet tit e Og 4.

%A in cam /ath o t f or t he commumtv, the t ustomers .md thi I here a ej e ses cral signith ant milestones in 1%i ii 517 m:llnin In energv t(insers ation btinds, u ith all b ola < <wis paid by the h m nes iMe l'on er Adnunistrat:on. \\ hi!e other utilities face reduid tunding

,ces st was the sile of

$ lor their w cathert/ation programs, l.Wl-li customer s are a%ured et a full- I

s. ale p. grm f or the next three y cars I MTil began an aggrcun e nurketing prt'.; ram ts) pituntlit' eneTQv-Cr[hient IMme cLHlstrut thin in cutlperatitln l k u ith the regienu ide Super lioed l'ents" program ! WlB also became k one et tinly f our uti!ities m Oregon to offer its customers a W1 rebate for installation of so!ar tir I eat pump water heaters under a spnial g !wo vear market test pri> gram sponsored by llenneville.

6 li>mpletion of the Ibh da ersion sttern at I eaburg Dam and the

k. (enstruction of the llik\ transmiwion hne m not115fugene t.on-nn ting WillJken/ie JnJ Sprmg Creek sulwtatmns were tw o major

,. n stt m improiements in IM Other 'ubstantial prolects were the Impros ements to the steam % stem intludmg the sife removal

..# of a,bestos f rom the underground steam vaults using a process A[% g designed by l'h l li emplovces l he creatn e approaches taken c

{g to A comphsh the-e ditlicult tasks illustrale the high quahlv of petiple sert Ing tius commumtv as hn 1.11 emp!ovees.

h Wlule IM was a t car tiIled with actn ity and accomp!bh-j -hu ment, lh prombes to be an es en more i hallenging Year -

v.w w$  % in addition to the many projects planned for thb tear, there h are several major i,ues-mostly at tht federal les el- t h a t y requne considerable atten! Ion. Ihese include:

fa 3i  %

• Proposals to sell the lionneville Pow er Administration either to the Northwest states or to prit ate on nery i

L

• litorts to tumpromise the rights et publi<lv ou ncJ

!ttihtles to pief erent e in the port h ise of po'n er from lf )l $

lederal generatmg plants,

• Attempts by the Of fhe of Management and liudget to

[ os ert harge lh mnerlHe, and T p

• Propised legislation thanging the proccJures and triteria

,{ f or rela ensing hydroelectric pro;ect' l fp A priority bsue at the regional and state levelis the adoption i't model conservation standards for new home mnstruction.

(( We must ri doub!c iiur eth u ts to cons ince the Uregon legislature that in<orporating these standards m state building codes will f?

b'netit the people lit the Northwest, the state and our comniunity p - ni t on!v through the x aluable energs saved, but also through i

4 the a cidant e or wstly surt harges on i WI 11 and other local utihties.

lb s ause each et these i-ues has the pi i tentialt o signifitantiv

[ Ins ri b ~ f WI lf s rate' , it b imperatis e that u e firmly def end our

( uWmers mterests.

J[ lor D scars I h IB has fated great t hallenges and made the most ut f

/ emphn ris oppon u m hes; 1% will be no eu cption. W ith the commitment of the Of /

1. ecx th"leadeNip of the 14oard, and the support of the communitv, I% ;U h a s amru an! year in assuring i n i Irs contmued success in pro-x idin, bt c!5 m Hert ice at 1 ow Cost.'

,/

lf

, ,,sQ_ff

)

3 :a Camilla Pratt, President of the lhurd

,> f 215 V

p f**s&

r.

?'

,.- .. .h '. f _

q' y.., '* . + , .. 'Y

.g  ; ,

[ . .

'. . - ' . ._ ., ., y g

.g-

_ i_ 7 :.

• G . ;' - : lW.

"? ., s ; . .,

j.

_ '  ?

's ,. ) .

i, :.:i N ' ; .. .. - i' '

... . '! y - '

. f s .' .  ;

~

s'

. u

({ 3

', .' - ' f) '

=-,3 ' .

}

a l ,_ 'j ,

, g, -

s. ..+

v ,. ' * .r &. .j 3'd- g V T 7*.. .; - s, 4. 6 = -

., ,i i. . .

-cp  :- 's

(

- .k. -. t 3 u

.q _

1-

. ,+ ' a

.1 .,'  ; .- -- :*

- m *: ,

v. . .

y [.

f. .

e

~ i ' .  !-  :'. - g. y f. . , ,

.J )-

, .- . 7 . .. .

s; . ,y  ; .; s .  ?

. .; _ e ., ,

- R -

e .' , ,~4 . ' . :

' *+ .', .  ; .

. ( . .

i

...v n. .g ..y '; .

A W

-3

. 1 9 -

u

, 4 .

i..". , , . 4 ' .

t Y. .  :

.3- .' i..  :,' , ..,.

, :,- jj i "- -

t, ,  ; ,

3. .,

,r 4'

l. G - 3

(~

J '- .). .

,5:

<. t

't <..

- k

., w

?. .

E

- i , . 1 . . . ~. . _

..c.. -' :

A~ < ' q j:

f ".* 'm

' ?

, - .+

. g \ ' .i _ i; 1

l J ^ ' ,Mf .,_

.; . - w; 3 :  ; . L. .

. j . .f ( . f . *

. . ~

,- c  ;. e .

7- c i ! ,

[ ', ,,4 #

9t .j- _ . ;y 9

' . . . . t- , , . ,> .

4 i .

-- ? 4 .,.,, ,

g

-'c v1. .- .

a - -

- f. in

. . , i w m i .s '

e lu : h.,Wr;-

S. ,. V. -; ;.y,g

"..',.J..

- t .

.w , x ' .

-- .' - -* . . I. -h f8

,y .

g, y -

.* . .. , 1 .

.y

-l - .' \, '

4 .1i, y ..

_, .. . (. ; 1 ,$

' , ' , *.- h 4

., p.+ v

. . .s. .; , ~ 4

..a g .-

c. .

. v. .

<s- ^a.. q p.: -

• r-I :a * .

s ' .f , . -' ' '

,-  ?

4 m

I..'.l..

$. '...,- v

...--..t .,.[ - ...._ .. . , . . . . . t,:

..;w 4 .

. , , . , M , ' 1 . ',. w '

g- .

^

.$~ ,, gn N, po 3. . .- .,

'5 3,3-- , s' 6' W

'W  ? / ~

4 . . W

'.s '* ",-:

,,3 4 A- ,- ., .', $

.'.. 1

- *g " -

.'.: , , ,, . gi : r . y g ..J s . -V -

, , . . . , ., 3 '. 4, . . ., g- . c - ,. , 4

.. f . . . ' , ' , -

N y"e,*7 e ' ,  ; 'Is . .:.,

~,.',r" h',- '

E p.; ' d!! - - . s

. . . .s . .

.-f. .

N if,'s . .:. ,7 ' . , , . > . ' . - { .f_ n I.k 5 -

- -,i. . j . .i g '+. * 's 9 *' , *. i c . . . - . 19 2

( ,-..N .,l o 1*'3. t

..'r4 -

W.

• d a

1 + f g . =--* ., ..p .

4 ... '.. . . . ', -r

,.* -. 4 ;- ;

- [ ,1 \,.,

42' -

7 :- 7m g

.y f .. .

. , . - 4k ,7 ree-

. < ,i e '.g'.'

y . J. - .* 7,, g

r . . .- ; . y ., ; ~: - . . .

i- .?"

! *; i$.

i s , , n., 'y - i; * .~ # ,' .: r, n- .,s .- .

,. ..',f c - g.:s .7. ; w-.-..s. ,,, >.c . , -

.) .'.-,

"r J .- , .

,? * ~ * = '

q '

p* r ' ;.

d. -

. . , y a n ,;?-_ -J a.y * - - ,- .

,_ , e Q_ . x _- ' ;

4.; .  !

,;g. '" . -

~, .

J a d

,,t_~ .[' ,

• 4' ,. [ T ,

.,s .

..g,.- ,,4 y .i _ .j U .. , ' ,..~g .[I "

4,b< ' , , T ,7 ( * ..""..

a ,, - ) .- - { [.; .

b .. , ; .

'_._ ,.. g., . ; g.: 3

" [., -

i. L ' 'e J..,'~.. t. ', .- s. - , q } .

.- . . - i' . '- :. . , . . , .

...,-}; '

.. (:

i -- - , -

+

,4. _ , -r*3

,. _n-7' \

, '+

' q  ; * . , .z m;,. ; .,

.' , , ,; .' ,s-

- . -k

^ * - - ,p-,

.L,',,,,.. 7 . V .. ,, 'W' s-

' , . , '. *'--.s-- . i i

.g ,h . y:

,'

• i

. ~ ..

-e. _.

,f.',, -h.. ,.c..

.e

,4

, -S . _ .

'.. ,' 9 2 gi. s

- i -  ; '. ) '.

,, " [j,g[

y, . . .

, '%'.y.R y '_' <'. -

, g ? j g JT ,

';- ,..(x"'  ; 'i.- V ,. ,

• i, g$ . . , . ' ...'..,g - ; ' - .Og ', Y . . 1 : . ]/ I,: C'.

~

' ; ' ,Y 5- D ik :*:^*.Vf,/ h- -^"

c

. l.Q

.j

. %," 7 <y f

i

.V,=.,1 E. .Y ?

.' .

• u 3 4

• 3 -

y [ T .,. @; lf' g

.g.,r, pg ; , 'lg j ' ' ,, pd - - * ,:

.. c .<

. * .  : e  ; .g

, F.( - ,, '3,c% ~

.- . ~ .-l c " . - 4 .s * : < -

,O. *

y. ,

< ,. -f

( :, y ,.

o y:

. .Js ng; y - ,

-. , .. ~ . q .t .

s.,

L; u.... , .. m. 9 .,

.;, ,;. -.; 3 . q, .:

,,g- Q., _

q.,

.-  ; 7:,,, , _L

.. ~ Vy. . , .  ; G: : ' ;. . _. . u.; . .

p( , . 9 c,r.u

., .c , g. m . . % , ,m , - * .a  ;

,. ,7 ,  ;

.f.h k t Y y f T' g. " % . . i *-i.1-[ ~ T- .' l5d . '

.. i . .y;: , [ ; 7. ;. -( . ',( 1 j g .

QL ;;. ,*, . r , . ,

v ~;'@0. ..-. -. -.: c .,

cy z. . .. . - '

c s,.m w :. -<2 ;Q;,g. t. ;; . .. ,~ .a. . ..

g.- w

. s.: >

+ ..

. y .

..! r., .

.. '. .8 ~,. a, , ,, .,.

?,w . ' , f l ' ; . ;.. -- t '- .,' ,, P b , z_ '

s ** ' . - *

/'f'- *

(, .r4 ...t m .O, . t .~ : , , . , s, , . sc'a s. e , r -:

.;-/p* 9 A .;cv. ,.,a, -

.. :. wt .

t 3. ..

n, . ; . ,.

t s .. v . - ~

v; e 4.. ' l, .' 1 -

4..

-"a, >+ t; ,. q

. . [3 ,.., p. ] ) #~ . ._- - ., . a ' ,, . .7 1. . .[.

.f ! . - ?. . ',f . } 5 } '. , , < . -j..'. . -(% ( ';. Q ,

.; 4e i - A

. <r -

' ,' - , 3 . y 3, m. p. . - :et ., ;- ., . ,y 3 m. - .;es

.y

, ;j(4, .. -

,c y g.j .+ ..*-

+ s... p.. ., ;. ,,-t <

• Y~,,...-/

i, 4 .n -

+.

. . 4; ,., ;_y '. .,. ,

_., .eds. . . . , g, . g ,.3.,< p.mw.. ~-,. s %

2 y ., ,,v.

y ., , . ,i 1, .; 7 ,

3, .. .,:..e

.n, . - -  ; 5. .. -

. . ~, .+ +. ,f. ., i . . .p

• c., r: p .;- . .i n .s ,4-

.c .. *

. -Qw .g ,.-*: .> ..,

y, y.

. : 3.A t . ' g f .< <; ;, . .. 'f . .,SE., , a , .

, .s .. e, .. . . - . . . . .

,. , ' . . ' - . '-. ' ,A , T 1. ii '.'  : . % -.[ [ , I [ .),, . - . .[ " ". o j? - .gg -

.#.[ '.

.[. ,

% .;-a + +

• n, ., ..

. . . ~., .s -

4. - % -i -- , - * -

.+

. . L. , . . ,

'.'j~.? ,.w-- O.c

. e - , m .. - .\ - - ., .

t - r

[,, $. c ,g- wv. ~ % - ~4 ..] +a. ., ' fi " A.* *t; 3 T. . - L . '% . . . '- -*

3 .,' . ?.3- , ' ' (- ) a.Ys... <,. ...

b.. _ 1 L ;(3, ' '.. ' 'J '

,,.s,. . .. ' 3 .,. . s . 9, 7 - ...... -

.+

.,4.~.,., . -  ?. ..

.o_ .

.,e ,t .: '-

,*w ;,, .

gg

, s .e

-. y ,

1 ...,...>t

,. # _*r.f, i. 1 - .: > ** h (,,g ,- 4 z -r.

,p.

3

-i' .% - % ?q ,L. . ,x

..".;  : ~- A

. . s . .; ~..':- - ,._-fs.

it ' .- ,- .:.% . ~

"-g,.f q...'an, :. -. ; g . .y.. .v

t. .c

\ .

. . .% .m ;. :-. . .s ' , . " 7:

^"

-Q.. ,,;.p .~ ,.+ , ,._;,;

%...,. 2,

'-);.'

L . 7,. .,. *. e 3,

. 1 .i

• O, '[..? 9'j't @i.[,97 , ' " . R.'.5 ' .

r.

. .. e 2 , . . ,4, . .

d'('. .

l ; .. ., .".d [cl [ ?; st ' *t .

..a ... [ $ .h . . ' [ kYL . J. s

]

o..

I-

,% 6

. F

' .. - 4":""; ': -

.I 1 9. .  %" fr'

_,~ 9, .y 'r, [ . ;

e " .. .-. ' . , ,

[ E' '

g.\

..f'1 \

_ _ . f

. .. ,. i- 3 ' ' . R ' ,*i 4 .-

.f r

. , . ' . . _ , ,/

y .k y

. ?

g 4_ .

',7 4 ,

,; w.

}

. . N-

~ '

" ' , , . ._;.: - - 'c; y ', ,,  :,

3 .S > . .

e f -

.,, . . . 3 7 . '.i j , - ! *:  : . . f  ? *r z . ".  :

i

.. . 4 a' . , . : .. - w ,e s;y j , s.

j e. ,

py

. 3' . 7,

'. - , , :', - 3 .. . -( ,[

• O L

, ., .

• L. V... g -

- [

. { .-

'___,' g. ,

r \. ,', 5-

.. . ,. : a. w, y .

_ _. n .,4 .

,c ,,. '.A a 7_ -

- , , u ,.. .

. . .- ,. .. .e:

7 ' q.

,.n _ -'

e - .; y yu- !

L .. - . - .-' .

- . - .- .; - ~;

t .

,, - e ., ..

. , ,..r, ..,, -

}_: 4 p . '. , _ _. _ . ,

, ; 8_. . -

( ,_

. = ,. . . r  : -j .. - -

< _ . - ,.- - . l . * : .. * ,

. ',;I ).

. , . 5- .. - ' ' * *. . ..;  ;

A

, tg

~. : }. + .: , ;e y e .

ega- .

.-T.  :

. . .., . - i -

g.

. q. 5 , .

y= . - ,  ;

qe g- . ,

s , ,: <. ;  : .,. '. , : .-  : ,- ,- A

-t . '

e t - v -

- ' , ;.: . .A,. ,..- ., ..

7 .

e

.. . . R - " . . K

• 7. -- , , , ,

. . -4 . ,

..y,.'

- ' /,

,,% 5  ; ,-

d, v - '

. .y

,.- - y .-

, .- ; .- g3 . -

,.e se..  :

. m.

i C

v . .

e . . y } ,.. . i, i.--. -

' .* ,-' .-+-

e

+, . .. ._ '

h . ;s

< I 4 ' , S_ - <

i' f n .

u 'j - -

• . ' , . - +

• y .* .m . > ,

( . .. - , _ _

% _. . .J g* . g.. %','

ej , -

,y 'y y y i

fx - - * ,

Q. '... y - . ,' .-

t

, ' ._' s'fa . ,_ f. 9 -_' - .)

Q.17 n

< . .,gc.,- , - ., ..- ,

n.. -

+..'y

e. 2

.'..',L.:

c .: , - , > .,

j ,.,. . ."-

'. . L Q.

' - ' i  :, r. . ),;, _-_

_... 4 g

1

%g. -

. . . . ,S t -

g-f.; _,

,_," r

~-

., . .  : 8 .a

_ 3 7 - ,_ .; . ( . .

v ..~. .,.

.. . . . <: ..w _: y -

3 . . . ~ . - : .. - ..

,c .-_ 6 ., ,

...g. .

,. *y ... .

=

, . .r , - --

.c ,. : .

< c, .

., s

..y' ., . . < - ; y .. . > . , .. ,

- i. - ; 3 .,

., \ ,y _ . : .

n- .:, ,. ; ,. .

+y .- -~ ;_

hv.

.- - : .u.. - . .

-..i.-- .y , 3 - . . :. .

+

.c . 9. . y s.

' . g,, ^- .

.0 .- . L, ,'.u- '

M , i e

. j. .

U: ,

.#g.. - . - ;.q- {y x ._ . ' q, ' . f ; . ,.

1 9j., ~< .;,77 .. ;h. ,

4.

m,.

s . . o .p . =

'. ,-. 3~

~-

a -

,- e.

...,q

,2

- -. a^..'

y.  : . .

~

,~.\ _ 3 ' :_.;:

.. e . . _;

-  : _ ..._.;, . . .: .,1,

. < . .. . .w . , . ,

, - ' - 7 9 ." , . ' ,

" ' . .; 'r -

-- 7" )

~. .; - ;-. . .W.wy .,

• . '- 1 ' g . , . '.\;.cj- ,' .. 'n ' .., ;

- -  ;- . , . L : s.

'S_ V i

. , . . . ,  ; ;. e, l ,1,+. v 7- -J  ? 1 . , 4 .

.. 't E. . * . g

. '.' ,. '. e- .,.<

.*q .

3 :..  ;, ' i r.'

c.]. . .. 'n.,

c.~

- . r;, ,

y: - ,

t. y ..

_. 9-x* ..?  ;.- .

q . .?. , , ; < . 7..

4[ ' ,3 .. l'- zi -

N 3

7

- i Y.'.-,p . * .\ y .. . . ,' ,-./. 'ti 1 :ci fi " ' CJ V ,

. '., '.,., R;,_ ; .;.p'%-

3 ': y._ _..,~

- , :: s.: .. ..

. _g' .- = ::

e . a .' ' e.. , . .i.  : g , e.

, . 3 7...,

~ ., .

, i ' . ,

-1:' -',.;.( 3 ,-

-J

A

-, l. c .

N h

- '.,i . ,'.{',

g , ..

., .: 3 .. .,

n

.o M -

>. g .g[

.. ., v

.3

~ ' . s . 4.y

.c. r > 2-q

.. s z.y.... .

..e: e ,. y ~s /. -

s. !y s; s -v 'g

E

.. . ,

._ . . . , . . -s. . ..

>;; . y

. ; ::. . ~ -  :.-r~ Lg

. l- ~ ,y 5 .. 8 .

4. ./ a .;; <

, . e . ,. .

...v.._ - 3 e*: -

• s.

-. .? #_ f:  ; -

- . ,*p.  ? ,; .- ' . y\, .-

2 -4...  ; ,. ] '.,' , ; .; . ' . ' ' ;1 i .. > . - g ::,. ; - n" ~..

q, ~. ,,. \;' , . 8

n .. . =;. .. ,;. <. .. " , +

,s ,,

, . m... -

=

., ,.~'_

4

.% =. .~ .: ..\L * .% ,

y i- ,

-Le  ;

g' ., -

] >: . )) -

-- .. . . , 1 y l t. g Y .J.'.:

.. ;\ . . . ...>..,,s

. + , .. a ' < + s- e-m ' es -

- .,< .s('.'",'.

.~=,-4. .. . g, .~ f p.3 ... J.$l:  ;. .q:.. g :r  : ,.

,f,. ,, + J.- 7 s

,P, -v ., . :i . : '. ; .- . . . s g %. ,.  ; ;y , **

, .  ! .- ,..,_e -

.. .; - ! y.. f -. . -.] ,a:

- s.J .q

^

- - " 1

,, ] f ,,, ,,  ; I{ ,' ,

' [:E.. ,, ,.

. 4

, . , 3 ('; ;

. *q . *

%.. -; V n , .. .s, <' . . .. . ; : 4 f ?,. y..,. - - - . ,, ,  ; , . , . g ,.

} y43.; .: . . t. - Rg .;. . y. -, 'l

<q#. .g-4.. . f:",;l_ ._- .} ;, '-;, ;. , ' ,Q; , +i.' -

s . i , e .

.  ?.~ ~ :. ing .) .._

- .j'.= :* . y ,, , c.

. . . . . . , . ., ,. t. . ,. .

\..p. 3 . 2 - , ;.

9 . ,, ;n ;V - -- ;

J.f.' f

f. - c

..2 1

9*'.-..,..;

"..: 7

- - . j 1 i

.', ",. . . .-y.# '.

.a 4 . $ ,  ;. .. t, 3 : *

.-y y~ --

( 3, , , y. . .: '

, S , .-..

'9 - , .

('

[ . ( , ,.,f, "5~"'.- h -' ' . ' g . [ _' ' ' . l1,- . . ' ' ' f";

~

r * "4 .

. i ,' . .

.- . f

.. : ...a, ' ,.-. ._....'h. [ 7.- - [_

-- e . .g ,g... ..,. - -.,

. ~ + . . . .

s. - - - ..a

. .; . ,- y,

3. e

?

- - , ~. ._.

,, . .~t .., * .. 2. -

y.,

_ ., 1 .

+

4 - . ,Q; > _ . . . .. ;

.. . . . -. ..s.

-y 1.

,.;.y" ; . .

4. g,

..,--_ --w. x .. . .. -

, , . . . - ?. "-..  ?-

' E ; 'g . -' . ; ; .* 4*-. *; . _*%e

\e '. ';'_8

- ' J: : C, . \ ~ . ;. }

.,;..g s- . -  : .. >;: .

' -" tF . .:".. . . R -5~ ,9~

. . f, . , . ' ..: g, - , ,- -

g ' t.1 5 ..-.' y,f . ' .' .- .

g( . ,.

. . . . s.

t .

. y; e - ,~;.- . ;...,'

, , , , - ,-? . ..

n,

,e.. y. T : . , ,.. . ig , -

% . ; ..- g. - . c*4 .;7 7, 1. - .* ,s:

, . . ' -c , _n - . , y <; ~ : -

.. y ,

.V ya g,. . -

= . . , . .

f;; . _}-Q -M ;. Qmy.( c ; $. : .. - ,; , %.$& v %.9_ _ .\. . [ ?: f y ..

' ~ _

.j-

^

T * >- 1 .=; ; h,.ky,.,u.e..  ;

, :._ Ql .; L

. [? N t 7 j , 4

.q e, ' ,  ; - j, w'[ , ,' ; 3 , .J . ,

}.;

4 a..

gy_. " . . A l- , ( 1. 3. . -,..

... a.. 4

~ > :. r. . . - .~ w _ g;. .. .v . . -. .. . .. , . . . . . ,w,-

,-gsn ]..r. .

- .. ,y .s. ., 4 .

,..y. 4. *

,,g~.. . .

y.-

4

,,s1 * ', . -

) ,k_,f.c r5 . g, . ., .. .. a ";, '-

g e c4 , ,,.y A .J - - .

b.9 - : * . g. . .v .

p.

, v e '- .

. . , . .- , w .:. , . .n .. ' . , _ - gV . - .

., .g ..

. .' . .v

.- 4 :. .c. - .. .:. p,' . ," _i=p p 9. .; c ,- - ' ,,-'fy '. 0

.? np; . ,# -

. 3 V , ,p;. , ', ,.

c_f ,v... _ .. . ?.t ..~ ', ( .' Lu,

?l ,._-( ,( * .,-

. '{ f)% *h -

4'-

c' ' g? ' .'s I, M

. . '. . ,- ..b n '.-% ru

. :ls

~ _ . ,

m.. .

.-3-. --l.. y . . <.. . 3 1..

,,,e .,-  ;.-d(.; ~ , - . . ' -l ' ,

y -. .

t- - ,.- ,,

4.

..y . , ;

,' . . p,

. j s

.p c.

, ,% . L.

e p;;-

.t.,.

. . .; 1,

.s y , ,. - -

t 3g .,,r 4s.,

. .. , . , . . . . . f.: . _

,- t, . - ,. . , . 2 . >. .,s. . ... .- . .-

< - 3 I

Y l

Weyerhaeuser mill in Springfield, and by being a leader in assisting energy conservation in homes and businesses. j So md Board and management decisions have also a ontributed to the community's historically

~ '

low ates: l C mstruction of hydroelectric plants on the ,

Nh Kenzie River have assured Eugeneans savings I ir tacir power costs. EWEB's three hydro projects

. urrently supply about one-fifth of the commu-i nity's electricity needs. l Computerized operations and other labor-saving equipment keep labor costs down, and the planned Energy Management Control System l could save $800,000 or more in annual expendi- l tures for power.

For 75 years, EWEB and the community have accomplished common goals by working together.  ;

For 75 years, EWEB and the people of Eugene have anticipated tomorrow's needs and made decisions based on that vision.

That same foresight will guide Eugene for the j next 75 years. With careful planning, our commu-nity's children and their children will grow up with the pure water, reliable service and low-cost power  !

to which Eugeneans have become accustomed. In l the 21st century, as in the 20th, EWEB will continue its effective partnership with its customers.

n

. -- .,,q if

'^

~

4.

.a 9'". L e -

w  :

, o s56 , Sbb%.

g-a ps o ggg 2

~

ogpgjjp@"1 i e$ ' W Wh w we g es'-$g'o gege%tSt#4,la g

. k N mg #5?$et*')'b(op

, n a w ,

9(c eteds,'l

EWEB'S BEGINNING TRACED TO EPIDEMIC AND GLilNEA PIG

[t took the worst typholdferer epidemic in Oregon's The public, enraged about the epidemic, was history, a guinea pig from the University's biology more than receptive to the notion of a public utility.

lab and the unrelenting efforts of key Eugene busi- Eugene merchant J. D. N1athick was an outspoken nessmen and civic leaders to form the municipally supporter of the municipally owned utility, even owned electric and water utility. using the subject as his campaign platform for All early accounts cite the typhoid epidemic of mayor in 1907. When the Walterville Power Plant 1906 as one of the main instigators. The disease first was dedicated in 1911, it was named "hiatlock appeared in January, and by February 24th a survey Station" in honor of his valiant efforts to establish of Eugene physicians estimated that 300 typhoid the utility.

patients we.e under quarantine. The population In April 1908, Eugene voters approved a $300,000 was a mere 6,000. 40-year bond issue to purchase the water system.

An ins estigation by.the State Board of Health The voters also passed an ordinance for the estab-soon pointed to the water supply as the source of lishment of an independent board or commission the bacteria. Professor A. R. Sweetser, from the to operate the utility, once it began operating. Six University's biology department, injected a sample months later the City Council paid the Willamette of the waterinto the bloodstream of a guinea pig. Valley Company $140,000 for the water system.

The animalimmediately died. Beause Eugene citizens rejected a plan to build a The State called the outbreak "the worst typhoid gravity-feed water system, the City decided to use epidemic in the histo:y of Oregon." The State floard's a less-costly pump-operated system. This led to the Alarch 19 report concloded that: construction of the Walterville Hydroelectric Plant "The contamination of this well(kicated between to provide electricity for pumping water and for 6th and 7th streets near High St.) resulted from street lighting. The Walterville Plant was completed seepage from the sewer; another possible source on Feb.17,1911. At 6 p.m., hlarch 11,1911, the being seepage from the aJjoining millrace, which municipally owned utility officially began when is in a most filthy condition." E. U. Lee, A1. Svarverud, C. S. Frank, R. hl. Day The Board descnbed a second well as a " culture and B. B. hicKinney called to order the first meeting ground for bacteria, more unsafe by far than would be of the Eugene Water B0ard.

Og i the securing of water from the stream itself, directly "

Responsibility for the contamination fell on the In 1911, using wires strung along alleys bordering Willamette Street, the Water Board offered its first U e shoulders of the Willamette Valley Company. From commercial electric service to the Eugene Planing December 1905, Eugene's water, electric.and gas hiill. The company is still an EWEB customer.

utilities were owned by the Oregon subsidiary of The Board purchased the competing private the Eastern syndicate known as Rhodes, Sinkler electric system in 1916.

and Butcher. After the epidemic, the manager of The original five members of the Water Board put the Willamette Valley Company issued a statement the utility on sound footing, setting up an account-claiming that the company had not had actual ing system, establishing competitive rates, soliciting

{ possession of the water system until Feb.1,1906, but would take measures to ensure the safety customers and ensuring that the utility never had to call upon taxpayers to pay either interest or principal.

of its customers. In essence, the early founders laid the ground a) .

work for what EWEB' continues to emphasize p- today: " Excellent Service at Low Cost."

The municipally owned utility was here to stay.

7 .f b

4 g --y 6

90 ~

$ereVf $

'Ok .

s -gc gQ WO 4 j',.

pow #' .

s_dL * >

IMPORTANT DATES IN EWEB'S HISTORY IN3t> City Council grants first water franchise to T.W. Shelton and Charles 1.auer & Associates to operate the Eugene Water Company.

13s7 City Council grants first lighting system

]; - franchise to Eugene Electric Company.

J.;p'. 5 Generating plant's capacity is 100 h.p.

i toni Eugene Electric Company serves Springfield 3, customers and changes name to Eane County

_, Electric Company.

1001 Eane County Electric Company, Eugene Water Company and F.W. Waters' gas-heat franchise sold to Willamette Valley Company,

~

an Oregon subsidiary of the Eastern syndicate known as Rhodes, Sinkler and Butcher.

. g, f' -

a Eugene voters approve charter amendment to establish a publicly owned water and dnnu(forfy a .

gfy ne me,,mm e<,,c nay, %,,, wa, ,,, f, n c s i ,a,i electric system.

s gf n a rumes x Av. Iw t u zccan. si sea,ccr:sr ,

, g. , gg ik r#,4cer# s ,

to the privately owned water supply.

[ _

m Eugene veters approve $300,000 bond issue 1

to buy the Willamette Valley Company water g- -

- m system and pass ordmance to create an

3,

, . 'I 'Iq independent board to manage utility.

w

- % 4 ,, # "! City purchases water system for $140,00t).

2- W W O ,) 1911 Dignitaries make 14-mile trip from City Hall

~

95.; "

j JO to dedicate Walterville Power Plant, Feb.17.

.q*

• Ownership of the utility officially transferred

' ' # '"W W to the newly created Eu' gene Wa'ter Board, y - -

tw oy,ui actmc f u,m ., March 11.

M ... . , g I,Ntl7 2.7a'IN,{,7lQ With the aid of University Professors O. R.

g, f , , z, Stafford and A. R. Sweetser, Eugene becomes e

F-4, . ,. 7/ .} first city in Pacific Northwest to use chlorine

., 1..$ e i in water purification.

f 1912 Board and City Council reject offer by Oregon

' ~

I o Power Company to purchase utility.

c. s A 1911 Voters approve $llkUKX) bond issue to expand reservoir and main capacities.

~"

19!4 in April, Eugene voters overwhelmingly reject proposal to return management of utility to the Gtv Council.

M,3 : ., f ., . ', e 191o Water Board buys Oregon Power Company's y distnbution system for $150,000, a price the

'y;

[v i Daily Guard calls too high. The system pays for itself out of earnings in less than three years.

1921 Eugene voters approve $130,lkK1 bond issue for general water distribution improvements

_ and $375,000 bond issue for "McKenzie River F '

Supply Eine," a project routing water from l the McKenzie River at a point near llayden l

( ,

Bridge to Eugene via a 30-inch welded steel 4 supply line.

'm~

\ *

l W

,lpw-ediu tm 1h W

,. r+

s . n** 8 ann y-y

- ~b

p Y

1927 $1.25 million bond issue approved for 20-foot-h ' '

high dam on AtcKenzie and for generating -

plant near Leaburg. -

Y,b -

NicKenzie River Suppiv Line begins carrying -

8,500 gallons of water per day to Eugene. yN' d 191o Leaburg liydroelectric Power Plant begins b , y operation, generating nearly three times the ,

output of Walterville Plant. O 1932 The Water Board votes to give the City of ,

Eugene a 25 percent discount on water and #. s electricity used for municipal purposes. * * \

1916 Voters reject, by 4-1 margin, a proposal to i 't amend the City Charter which would require the Board to supply " free" water and electricity to the City for municipal purposes.

191s Board makes formal application to Bonneville Power Administration for purchase of addi-U" ",w has eg "31 "# gim tional power. 1 Hd * "'

Preta l 1910 Board signs agreement with BPA for mutual emergency stand-by service.

194i State Legislature passes law requiring all municipally owned utilities to pay to the City general fund a minimum tax of 3 percent on gross sales of electricity (commonly referred to as "in lieu of tax payments").

1914 Board eliminates discounted rates to the City. j j 1946 Electricity sales pass $1 million for general cus- 4- i tomers,' a23"o increase over 1945. All records s hh, M

'~~

? l' for sale and production of water broken. -'

New 20-year power supply contract signed with BPA.

$7.4 million 10-year municipal water and light expansion program presented that would .

double capacity of both systems.

1949 Water Board renamed Eugene Water & Electric neu i:ne nauwu rom. L* 102 Board. 7=

Old Walterville Plant replaced with new u 8,000-kilowatt plant. '

1930 Hayden Bridge Filtration Plant replaces Carl A. NicClain plant. Plant's new rapid-sand filtration process results in 25 million gallon per day capacity.

19i2 Utility warehouse office built on 4th and vaw num iou Ferry Street property.

1934 Voters reject plan to build dam on upper AlcKenzie at Beaver Nfarsh site because of project's negative environmental impact. .p 1919 Voters approve Carmen-Smith Hydroelectric 6 Project, located below Beaver Afarsh site, by "

3 to I margin. p 4

[

[ lll .

4 , ~

.??

? $ f".f ' h. Ih-l

-MV )1q" x

4'g 4'

• f,} }

,[~%,at n. jf,,,[' ti;,,

I ;.

3

?m ,; m ~

E yf - .

'e- t

, '*'s ,; ,- ',t ,

1' s

.; ; ~ - '

- i .;.. < . ,.

. , ..r .

I

..,f

y. .  ? ' . * , (e,y[oem,

. y p ,';; u .  :

' . &W'{ .?' p -

E

^ *~ 5

~

• j ?

c.

y- @ %-. .,. .. .,. . w .

l

~.

. ' */ - [' ' . *N 4 -4g 4 j _3{ I{ f } j j ] [)) g g '[ g, g f^\ l ( ),g [] g. f [(){l] l ,l 1l( - s, j [](

4 Y-  !!! Ira!ilill prt h i s s 'i' l'Itl till pTL h ess at I bls dell j' .# - *i ]

lir:dge tilt rath in plan t m ir ks hrst m ahir J

(

,s .-

. 3 ,g.:d' .em% _

t - a u h,oug m - c o d1m non ruoo m o -

, , w[.. %, ,

%tatt s Whist Ji st r th tis < u ind sti i rm a hit h n,.

R*. ,N ' '

• ,j f'

{,.

{

. ,s .

}l4 4 j.. L ;f j. ,g.. 4 miluded a mJs up to vi mph < auses Sl W a O 4

g ,. re i. , 5 . ;., m Januge to tunsmmien and Jrtribution -g

(

['S k . ,7- 1l]. f -l N;!dj .f 9 hnes li idate t hi n orst ptin er tallure in the W m.- ' '

... .- unhts s hsten \ll pow er s restored w ithm -

4. g. , .' I. " t (. . JN [ [*.b % j [ rn e d n s h

. ,. m . se c s # w .. ormen w 1 hero ompictea em . -

V .. , f '. (.' 1 ..

. y =

I \\ l B - largest generatmg f acihts w ith a total S w .

y #c,,p '

7,. ,

opa<,n ofen w Luomans no t ompictea

, 7% . -  % ,.>. & I \\ l B s largest u ater rescrs tii r t l . 211-(

.th T. m.

1. ,. 3 - ;. , . . . - .

nunion canon nau xm t hu e-en oir ,

g..

g \ 1'lc rs J ppri si e fl u( tr hia t h in r.:t w atel suppls

%ID y _',) .'gj :<

jg.

t m \.is ember i \\ l li begms Huoiidation m ali

.NgJ . y':,<y ^ . .

^4- '. < %

\prd b e \ S'et W clc< t h in in ',cptem ber

.m...

?' , , g . 9 ' .*-  ; ,-. gjya l ~ mscrses Je< rion and fluoridation n Immt'diJtels dl% tir1tinlied

\tifers apprtis e Itt' ! h22 5 millhiil li ind t

_ .- , .* - to om_ num _tneonermd  ;

pow er pro!ct ts m<luJmg a share or l'i rtland i e

( st'ne!al I let trh s Ir t 4a n !'riye(! l \\ l l3 s ]

shart it Irt 4an pliu t'r ls assigned it) l$l' \

i under net-bdhng ' < ontrat t u hh h ialls for lil'\ tti pJs Jll id I \\ l O s l ri4an ( tists

. y ;;;:9'

\ oters a ppros e a toe r-s car moratorium on _

I \\l B p!ar to strm t a , us lear plan

• a 3 l anc ( ounts I he i \\ l B C ommssioners -

det idt against ans f uture ins iils ement :n g

1. ' n ut lt'J r p(iu er as!dt t rinm t ht' Im 4an l'rt yet t I\\i H explores alternatn e energs sour < es 5 Includin.c t t uiperating w ith t he L () and ( hl "

5

~

, . ~

i n m'la r resca rt h u lnd pim er generatum i

the tit u t uid iir 1iu! and getithermal researt h ==

I h riiu ghtiut tht i arl, li ls I \\ l il is alit ads i 9

, Imp lt'menting mans (it the requitements -

mandatt'd bs the l^ \athinal I nt igs \<t y I \\ l B n nrst \orthw est utihts to begin -

44%L (ertifs mg new htime s iinstrut tisin built tti ,

L su pt'r-In sula ttsi stJ ndard s u!1derits l nergs a .; I tth ient BudJme \u ards erog ra m g

( iniperation betw een pra ate and publu E 3 set tor to sok e eneras proHen~ results in l i\ l lM\cs er haeu set L uhts Industrial y

g i neres ( enter I he 9 4-mdhon iogeneration ,

plantis ptin ered bs \\t's t rhat'tiset papi r- Z g board plant - t losed < s i le stea m ss stem _

gPe in Nos ember i ugene < tt'/ ens s ote to h.n e 1 cuenacadacato.n - er boune r 1ne -

h

< lll/t ns s i nt e !() dim innhnue flutir1dJting 5 the w ater 1

-E A

S 3 -

Y

id.

4 m ~- -

[ t rV  % s,

.,4

'l f

• t.

'f_'h~

-f Ji : A 74 r. F ', ,.,4  ?.

p ,___ -4

• e#;'

9 Nh -

l - @z w: 'x;P 4 '

f 1

%;rvu.au -~.

. > r- * +:, . .w< , v w y" " - ~ .n .

l _,

,p.l}

, ,p I ,,U < ; " _, y -i in j '

C f;p -

. N- %

• ll l?l TL a ;t > r' ~

'\ V -

' " .

. ' 7 ^ !Q %Q': ..

iy [} $^/$2 1 M%

M m*~ MfA.f y.nJ

. ky,;)- !QQQ@h gg;;, ,;:;#; 3 -

.4 <

1

.. ~>n. , c

.f- . '

.y 1 i l,m$$q$dlEb;.jw$? r. zy. 3:b ;[ I, i :abi h.hd N? $x+s&yys,f 4

-g&f~

p. m: u .t

--..a e- y~y ( W;-. y i

l >

u ~ . . c.n:=: w. .J& ; ?>n\L:}ly . ..

A t.

c y'ru gnn;.,.p:va;y  :.. :l C .u .

l1 . l$4;+r:

.-f;. .(ta .

l- *)- i*i es ei~ N 3. .

31 q %g;Uc'g .L'd'it;. , . cj it. (-?.+.p*- -i '.-' ~. '~.'< . .

Nr . Jb,hN.;hZ4'". .. . J* b. -

^.' .k!? [L .

^ -

'!Z5*k . w $VG M T M L '

.1 $  ; -9 x .;,gt n e L%' y 1

J Z "

O a 8'

-QTdf p%[s:hw,F':' "

'; s . e l /rMQg'f4'CJL&$y .. "* "T=-9;&p,$g ,y?jngig. ;;1

~ ~ ~ g?~  ; . ,1 ,  ;;  ;

p y W "Q}'[

Q L w, ,f: ~  ;] ' _ it (; lp* ' dhpri k i f, w

y ,

... y m= .

4 , [g .

y, ,mfu

.. .v s - m ,.

3 gy m.

4.- ,4 E. ...x t e J . '. .it - - r , j c ti. i t -'

24go 4 wi - / , )-y it ' /y * +- % g.. ,

We ~~ % g p" .

R,. .

n

.~

.11. "

~

, ... g

& y- -

-.w ww , ,

6 #

_ f.

VM < 'A

~

f

~~

,r-

.\ ]. \i ,ht )l2

\ '

s , . i.

I 1, \ ,l Ihe first ntajor change sirtce 1952 to f \\TlYs head- -

?'*v a. .. '< - y quarters tatilities w ill be mitiated in 1% ihree l: ' , ;c7~ ~

vears or preparation and pubhc re\ iew of the -

e .{,,-

utihtv's lleadquarters \rea N1 aster Plan resulted m .s _, sj .j f' 60 . .

a tu o-to-one voter appro\ ai in \1 art h 1% authorie- 3;%$$d (jn .. ~,,-

Ing re\ enue-bond finant mg f or the comprehensis e ,i -' *

• w; ,.

im prot emen ts Int luded is the installation ot' a m c omputeri/ed energ\ managenwnt t mtrel s\ stem. j, ,. e J , ; > ' ) ', ,.

construction of a nest headquarters ottice building. ;i i s.3.. ' g.c '. . - < . >.. , - "

2 and an os erall redesign of the operations and equipment storage areas ,4

}i% - ( ,

3 , ' , '.{7 '

' .' {. %w} [ Q, .,

','"' t"-

~.,

\\ hen completed in Im the annual operational ;f . . , .' y V -/ g,.

savings is expected to as erage about 51 ; million. , .

, i T ,R e, bV "

(" *-p

" ~'

i.$ Q' I his w ould < ome trom sa\ ings in w holesale pow er - '2 "-

purt hases, trom elimination ot le; e pavments for existing olisite otth es, and f rom se\ eral eithiency and productis itv impros ements. \s operational expenses rise sut h as trom svstem grow-th, infla-tion and higher w holesale pow er rates ---the dollar benefit w ill also rise \\ ithin tis e s cars. these saiings are expected to fulls ottset the annu il financing (ost f or the impro\ ements N;

-e -g ..,_

• LK w.

, , .+ a, m

-M . ' .. .n

& ,.ia -

'd..

,bh,

,.s xtf'"

a

l l

l Estuar AiAxAct.utxT CcxrnAt Ol>cumoxS l CONTROL SYSTEAl IAll'ROVEAIENTS The energy management control system provides EWEB's central operations have been located the largest portion of the dollar benefit-an est:- near downtown by the Willamette River since the mated $800,000 per year. The computerized system current office / warehouse building was constructed will monitor numerous points throughout EWEB's in 1952. Since that time, there has been a 150-percent electric system including its generating plants and increase in customers requiring a 50-percent increase

( interties with Bonneville Power Administration. in the number of employees. Because of space This information will help EWEB anticipate its limitations, about one-fifth of the employees--

electric loads on a continuous basis so that power including all the information services and conserva-

schedulers can maximize the benefit of EWEB's tion center staff-are located in leased buildings own resources while taking advantage of the most away from the central offices. Consolidation of l economical mix of power from Bonneville and operations at the headquarters site willimprove i other utilities. Half of EWEB's current budget- efficiency and productivity.

nearly $40 million-is spent buying electricity. The new headquarters building will be located Therefore, fine tuning the power supply schedules near the existing office / warehouse which will be can result in significant savings. retained for warehousing and other uses. Equip-ment and materials currently stored on neighboring leased property will be relocated onto EWEB property and the steam plant's fuel pile will be moved closer to the plant. New facilities will also be constructed for l maintenance, testing and repair functions. Because of the riverfront location, EWEB is providing space for a public plaza by the new office building, as well as enhancing bicycle and pedestrian pathways.

These improvements will allow EWEB to efficiently serve its growing number of customers, upholding the utility's mission of providing " Excel-lent Service at Low Cost." In addition, the project will stimulate economic development through construction activity, and will enhance a major entrance to the City.

j n e e r, oc m , s, oa n.m .m J i l l l

1 l

l

UNIQUE BOND SALE PROVIDES CONTINUED FUNDING FOR CONSERVATION PROGRAMS In September 19S5, Eugene Water & Electric Board Shortly after the bond sale, the 10,000th home became the first utility in the nation to issue revenue was weatherized under the EWEB Buy-Back pro-bonds solely to finance conservation programs. The gram. This milestone represents about one-fourth

$17-million bond sale culminated a two-year effort of all electrically heated residences in EWEB's to receive necessary federal approval of the bond service area and an annual electricity savings of 47 sale, following local voter authorization in 1983. million kilowatt-hours, enough to meet the energy The full cost of retiring the bonds is being paid by needs of 2,700 new homes, the Bonneville Power Administration. EWEB's conservation services go beyond weath-The bonds provide continuous funding through erizing existing homes and encouraging construction September 1988 of EWEB's home weatherization of highly energy-efficient new homes. Included are Buy-Back program; financially assisting the weath- programs providing detailed energy-use analyses erization of 9,000 homes. The program, which for commercial customers, promotion of solar and reimburses customers for up to 85 percent of their heat-pump water heaters, and site analyses for pas-weatherization cost, had been funded since 1982 sive solar energy potential. Completed in 1985 was with annual allocations by BPA. Without the bond a cooperative program with 15 local public agencies sale, BPA funding for the popular program would that utilized Bonneville funds to replace 11,000 have been cut in half. With the bonds, adequate street and area lights with energy-efficient lamps.

funding has been maintained while BPA has spread EWEB customers highly support energy conser-its cost for the program over 20 years without vation. This is seen in the excellent participation in having to borrow from the federalTreasury. An the weatherization programs and in the two-to-one additional bonus is that EWEB was able to sell the voter support for the conservation bonds in 1983.

bonds at a lower interest rate than what the Treasury These programs provide both an immediate benefit rate would have been to BPA. As a result, BPA also of lowering customers' energy use (and, therefore, agreed to fund special EWEB conservation projects the size of their bills), plus help assure an adequate at an amount equal to the interest savings. Included and affordable energy supply for the future.

are programs to enhance participation by builders and new home buyers in the construction of " Super Good Cents" energy-efficient homes, to expand the number of low-income households which receive 100-percent payment of weatherization, and to provide financial assistance for weatherization of multi-family highrise apartment buildings.

As B.

yA. Ean 1y c

a s- ,

M' -

1, I

M p.

L.. 24 .16

.s#6 -

_ en. , w.. _ ges ,

{YIS g(; gor 6) m- , , .

"h=

Y ** i

'~ ~~

r gu ,y,/lb.

.o.

i l 'n f i ,

,>i t t e-r s .. a,-

jh -Q

. . l

'"E j - % ,, g'i h k -

g

, S lkg /

~. . . r_

s

_, "~"f -

Q

! i

=

i e" ~j T

-\ Lbl\ A g w( m g\n 1y y, y  ; ~

g ,,

vf t >

r YEAR IN REVIEW EtscTaics1sren 1%TER S1 STEM Weather during the winter months of 1985 was A very pleasant and dry summer resulted in much colder than normal and electricity use by increased water usage by EWEB customers in 1985.

industrial customers recovered from a decline in A total of 8.4 billion gallons was sold,9.8% greater 1984, leading to a 8.4% increase in retail electricity than in 19M and the highest total since 1979. The sales in 1985. The 2.21 billion kilowatt-hours sold one-day peak demand was also up in 1985, reaching broke the previous one-year high of 2.19 billion 58.2 million gallons on July 19; the highest since the kWh reached in 1980. Average annual residential all-time record of 64.4 million gallons was pumped use was 17,M9 kWh, nearly 1,000 kWh greater than on a hot August day in 1981.

in 19M, but still well below the average usage Residential water usage was a record 3.26 billion during the 1970s. gallons. The average annual use per residential Revenue from retail sales rose 6.4% in 1985, customer totaled over 111,000 gallons compared exceeding $60 million for the first time. The average with just under 100,000 gallons in 1984. The average revenue per kWh was 2.74 cents. Residential cus- monthly cost was $9.55 per residence.

tomers paid an average of $43.23 per month for Water sales revenue was $6.66 million in 1985, electricity. There was no electric rate adjustment in 7.2% above 1984 revenue. For the third consecutive 1985, marking the third consecutive year that rates year, water rates remained unchanged.

remained stable. The outstanding quality and availability of EWEB's three hydroelectric projects generated EWEB's water supply is a significant attribute to the 403 million kWh in 1985 while the utility purchased commrnity's beauty, enjoyment and health. The 1,689 million kWh from Bonneville Power Admini3- water is pumped from the McKenzie River and is tration and a net 330 million kWh from other sources. purif.ed at the Hayden Bridge Filtration Plant.

The purchased power cost over $38 million, a 221% Water quality is monitored and tested both at the increase since 1980. The 1985 system peak demand plant and throughout the system. The water con-was 513,000 kilowatts; slightly above 1984 but well sistently exceeds all safe drir. king water standards.

below the record 567,000-kW peak reached in 1980. Major water system expansion in the late 1970s Favorable market conditions enabled EWEB assures Eugene residents and businesses that there to more than double its electricity sales to other will be an ample supply of refreshingly pure water utilities. The 244 million kWh sold brought in for years to come.

$6 million in revenue.

A major system improvement completed in 1985 was the installation of a fish screen on the canal to the Leaburg Hydroelectric Plant. Previously, EWEB was required to shut down operation of the plant for a few months each year to assure safe down-stream migration of fish. The new screen, specially designed by EWEB engineers, diverts the fish from the canal back to the river so that the plant can remain operating.

Nearly completed in 1985 was a new 115,000-volt transmission line through the northern part of EWEB's service area. For the first time, a helicopter was used to set many of the poles, substantially reducing the normal time required. The new line will increase system reliability and provide for customer growth.

i l

Ret 'il Electric sales 24 18 12 6

STEAM SYSTEM m .

.'.', EWEB provides steam to 133 customers. The

'/1/ / / /-/ /-/ /-/ / /, steam plant burns hogged fuel, which is waste wood

pt*,...* -

-principally tree bark-from mills. In 1985, EWEB

.

• f .. A t t a sold 477 million pounds of steam, a 6% increase s e Reudential over 1984 sales. Steam rates were increased in

- ceneralSernce Other February 1985 as the first step in a five-year plan to

"" To fully recover steam system costs through steam revenues. The increase averaged less than 10% for w ig, so,s the majority of customers and about 25% for the soon c,..ns larger-use customers. The rates also included a "y ,Y'7Y,7 ' %.

. monthly fuel cost adjustment that would raise or p#CL . ,.  ; lower the charges depending on the cost of hogged KM is) , ;s3 h ; e 5 fuel. In 1985, steam revenue totaled $2.35 million, a po .qf . _.. c ; 1 ( o.

2s 20% increase over 1984.

c. 1 A ten-year plan for continued reliable operation y#df f* ?,fi_Y j 'j * , *j N Mfj ," M (/ ** ' /' o of the steam plant was adopted by the Board of

? . ;. ... Commissioners in December 1984. During 1985, ynn nc u we._i[t several plant and system improvements were

~ * * *

• 7 * < * * ** made. One project involved the removal of asbestos

. '. ', / ' # ' '.*'.# . in underground steam vaults to be replaced with si,.,s2 m 84 as fiberglass insulation so that maintenance can be done in a safer, more efficient manner. EWEB x dner"aNma other employees not only did an excellent job in perform-mu Total ing this difficult task, but also specially designed much of the asbestos-removalequipment. Another steam system improvement in 1985 was the instal-i c , , , , , , ,,

MeonSof Docars 4o lation of a new fuel handhng system.

__ 4 4 '- g A '?!L s ,.% ANALYSIS OF L985 SALES

. erg .en. v . v. i -

a

,o y:/;1 ;;/ut;/ci.  :( j j ELECTRIC SALES i 41,., . , . , /- " o

,.y f

Aivrage No. Consumption Total Qo;a;f

jfjLjdj;}:)._;

a * ' e ia:: s * . ; < < . o. Class of Service ofCustorners kWh Retenue Residential 56 257 + 1.0% 987 214 411 + 7.0"o $29185 739 + 6.3%

GeneralService 6 802 + 1.7% 642 591 301 +5.6% 18 362 462 + 5.2%

, , , , - we ?.?!/ j.1r

,3 Large Commercial l

& Industrial 25 -3.8% 563 767 057 + 14.0% 12 683 235 + 7.7% i gm m Street Lighting 8 5 100 418 +1.8"o 102 174 + 3.3"4 m a Other Water Utility 1 15 255 095 + 29.9"e 324 669 + 36.1%

maas rotal Retail Electric Sa es 63 093 + 1.1% 2 213 958 282 + 8.4% $60 658 279 +6.4%

Sales to Other Utilities 213 690 000 + 128.5% 6 006 586 + 117.9%

Contributions in Lieu of Taies TOTAL ELECTRIC SALES 2 457 648 282

• 14.3% $66 664 865 + 11.5%

a uaons of oodars

-a ,. ,,,, a m ; $s

p . ,

IVATTR sal ES hp'gfl ai , a j . . -j ;; ;je ' a' i a . a ,;a f< Aivrage No. Consumption Total tj;jb7 p;);}py-l: /J Class of Service ofCustomers 1.000 Gallons Retenue

. s <; : 2 q .n.J < f. .- < *

. Residential 29 195 + 1.1" 3 258 100 12n $3 345 986 + 8 41, 1

,H/.;f.7/?I'/-/./ / ;f fl o GeneralService 4 971 - 1. 0 ' ., 3 904 488 + n 7" 2 685 507 + an )

.' j

• j

• Water Districts 3 1 16] 951 + 114" 586 303 + 14.1" > l 7'f'j 1 8542* . j 'A: [ 'j A*' f 'U <o ,1, ,jj Electric Utility 1 81 671 4 7" , 41 291 I 4.3";

/ .. . .-a ..- ..a f- 1 i. I e a .

TOTAL WATER SALES 34170 - 1 1" 8 406 210 + vn $6 659 089 + 7. 2"., l

\

, i i.oI f, I f CONTRIBLITIONS IN LIFll GT TAXES ilneludnnu Irown l'rouxt> l School Districts urans any of Lusene City of Eugene and Others Total school Dotncts. Other .

I armm Total 1985 $5 908117 + 219". $2 214 424 + 15 8". $8122 541 4 20 2"

MANAGEMENT STAFF i

l i

fitn Brown, director of the operations & engineering division, joined EWEB's engineering staff in 1963 after receiving a degree that year in civi! engineering from Oregon State University. He was appointed as civil & mechanical engineering supervisor in 1976 and was assistant director of the operations &

i engineering division from 1984 through mid-1985.

• The operations & engineering division includes the engineering, generation, electric operations, water

, operations and shop / maintenance departments.

?

Rosemary Edwards, director of the administrative services division and assistant secretary, joined EWEB in 1963 as secretary to the general manager.

She was appointed assistant secretary to the Board in 1974, and was assistant to the general manager from 1976 through 1983. The administrative services division includes the property & insurance, contracts r re,wm c.urm,u zwv uma. o., owmacro & records, purchasing, personnel & safety, energy 1ca Reedcr./WrFr er. education and stores & materiel departments along with the public information, customer relations, strategic planning, governmental relations, and

[can Reeder was appointed by the Board in June organizational development & training functions.

1985 to serve as EWEB's ninth general manager /

secretary. The selection was made following a nationwide search for a successor to Keith Parks, Garry xunter, airector of the power management who retired on December 31,1984 after serving 11 division, ioined EWEB in 19M as an accounting years as general manager. Ms. Reeder had been clerk. He'was promoted to assistant commercial i

appointed acting general manager in January 1985 manager and to project analyst prior to serving as after having served as assistant general manager rate manager from 1977 through 1983. The power 4 since December 1983. She joined EWEB in 1978 as management division includes the energy conser-planning & governmental affairs coordinator and vation, power resources, resource planning and l managed EWEB's energy conservation services and rate administration departments.

staff from 1980 to 1983.

1 i l l Don Vandcr:anden, director of the accounting &

l finance division and treasurer, joined EWEB in 1968 as general accounting manager. He served as assis-tant treasurer from 1973 through 1983. A certified public accountant, Mr. Vanderzanden has been honored by the Northwest Public Power Association for " Outstanding professional performance in i utility financial administration." The accounting &

l finance division includes the general accounting, cash accounting and customer service: departments.

l L

W ~

j

~'

r / /

/ / / /

. <a .

........... go . . . . . . . . .

ELIGENE WATER ..

& ELECTRIC BOARD 0) FINANCIAL STATEMENT!

l f f f l  ! f I f h h f b f I f l h h h h h  !  !  ! $ h f h f h  ! $

f f k f f f 9 f f f f h  ? I f h f I h h $  ?

f f f f f f *  ! 4 f f f f $ h f h f f h h h f b $ h h .I f f h h  !

f f f  ? h h  ! t

• h  ! h I h $ f $ $ f I h f h f f h $ $ l $  ! N f f f $ .h  !  !  ? l f l h h $ h h f h h h h h  ! ,$ l 4 f h  ! l f f f h h + h k I N f h h h f I  ! h h  !  !

! 9 $ b 9 h h  ?  ! h h f  ! $ t t f b h I ,k  !

f f f h h $ . I h h > h h l $ h h h f N h h h h h h h i

.............e . . . . c . . . . .

h 9 f h h 5 h i + b f 4 f h b l h h $ f $ $ $ h h  ! f f

$ $ $ 4

/ f 9 4  ? Y  ! $ h I h f h f f  ! l  ? +  ? f f f f 4 {

• 4  ! 4 . b h

$ N h h h . h f f f h h h f 09..f  !

h f

k

?

?

?

h 4

h f

y f f $ $ f Y I s.......................

e/

h f

i  ;

g . +. i

+ s' + + h + .i $ l f f l t h h f h 9

. . . . . . . . , , , h h h , , , $ . , ,

f f $ $ b f f 9 h f h h h f m......,....,...,..f f $

f  ? h h

Co i $ i > + . ,

i h f f 1 9 h  ! h 1 i i $ 1 s g . . . . . . . . . , . . . . . . . . . . .

+ + 1  ! h h >  ! ' ' ' i

q. 9Oi'.'.'.'.'.'.'.'.!

, . f h h . , j 4 f

h k

4 h

j h

sqf .

h h

h h

b 24 . . .

h i

i

+

1 i

i i

i i

b i

i i

h h l h

$  ! $ h h  ! $ f Y h  ! h t b f l $ h h  ! I h f k f h  !  ! 4 l 1 h 9 $  ? h h l I f $ f f f $ $ h h i f 7

9 4 l f I h 4 l h 9 N f k h k f $ f h h f f  ? h h h f f r . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 h 9 $ h  ! f  ! f h h h h I h h h f h f f k h h $ f f i $ l f  !  ! f f N $ 4 h h $ h f h f f l h f f f 1 h h h i E h h  ! h l

• t , f f $  ! f l  ! f I f f f' l f f f f l . . . . . . . . . . . . . . . . . . . . . . . . . . . f

EUGENE WATER & ELECTRIC BOARD 500 East Fourth Ave.

P.O. Box 10148 Eugene, Oregon 97440 (503) 484-2411 Financial Statement Responsibility The management of Eugene Water & Electric Board maintains a system of internal controls to meet its responsibility for the integrity and objectivity of its financial statements and to safeguard its assets. The financial statements were prepared in conformity with generally accepted accounting principles for pub-lic utilities and accounting requirements of the Federal Energy Regulatory Commission. They reflect all adjustments which are, in the opinion of management, necessary for a fair statement of financial condi-tion and results of operations.

Coopers & Lybrand, independent certified public accountants, are engaged to perform an examination of the Board's financial statements. The examination provides an objective outside review of manage-ment's responsibility to report operating results and financial conditions. Working with our internal auditors, they review and make tests, as appropriate, of data included in the financial statements.

M+_ v Treasurer March 1,1986 To the Board of Commissioners of Eugene Water & Electric Board:

We have examined the financial statements of the Eugene Water & Electric Board for the years ended December 31,1985 and 1984 which appear on pages 2 to 12 herein. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the ac-counting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the aforementioned financial statements pre >ent fairly:

(1) the financial position of the Electric System and Water System of the Eugene Water & Electric Board at December 31,1985 and 1984, and the results of their operations and changes in their financial position for the years then ended; and (2) the assets and liabilities of the Electric System's Distribution Division and Trojan Project of the Eugene Water & Electric Board at December 31,1985, and the results of their operations and changes in their financial position for the years ended December 31,1985 and 1984, all in comformity with generally accepted accounting principles applied on a consistent basis.

6D &

Eugene, Oregon February 14, 1986

Eugene Water & Electric Board Electric System Balance Sheet December 31,1985 and 1984 Assets 1985 1984 Distribution Trojan Electric Electric Division Project System System Plant in service 162 735 573 174 859 284 337 594 857 327 479 412 Less-Accum, depreciation & amortization 67 381 768 20 544 831 87 926 599 79 950 518 95 353 805 154 314 453 249 668 258 247 528 894 Property held for future use 1 687 029 1 687 029 1 687 029 Construction work in progress 10 016 293 10 016 293 5 650 423 Nuclear fuel,less accumulated amortization 1985-$46,202,163; 1984-$38,302,263 26 368 794 26 368 794 22 707 129 llTILITY PLANT 107 057 127 180 683 247 287 740 374 277 573 475 Bond funds 4 702 002 10 562 141 15 264 143 13 168 201 Reserve & contingency fund 2 000 000 2 000 000 2 000 000 Renewal & replacement fund . 500 000 500 000 500 000 Construction fund 2 534 209 2 534 209 2 892 358 Conservation project fund . 13 581 410 13 .581 410 Contract charge reserve fund 6 665 948 Debt defeasance fund 12 387 400 12 387 400 Decommissioning reserve fund 451 911 451 911 207 811 SEGREGATED EllNDS . 33 705 021 13 014 052 46 719 073 25 4'L1318 Cash & temporary investments 11 484 160 9 762 371 21 246 531 27 506 273 Segregated cash & investments 2 635 178 3 465 289 6 100 467 5 698 097 Receivables,less reserves 1985-$218,790; 1984-$225,689 14 036 876 14 036 876 9 528 172 hiaterials & supplies, at average cost 1 446 269 3 291 796 4 738 065 4 548 377 Prepayments & special deposits _

436 111 535 815 _ 971 926 793 218 CllRRENT ASSETS 30 038 594 _ 17 055 271 47 093 865 48 074 137 Advance refunding costs 9 863 900 9 863 900 10 280 684 Deferred charges & other 2 611 933 625 095 3 237 028 5 402 331 071IER ASSETS 2 611 933 10 488 995 13 100 928 15 683 015

$173 412 675 $221241565 $394 654 210 $366 761945 The accompanying notes are an integral part of this statement.

Equity & Liabilities 1985 1984 Distribution Trojan Electric Electric Division Project System System Balance at beginning of year 116 618 751 116 618 751 113 641 142 Net revenue for the year 3 881 938 3 881 938 2 977 609 RETAINED EARNINGS 120 500 689 120 500 689 116 618 751 LONG-TERAf DEST . 39 131 709 130 340 307 169 472 016 157 530 587 Accounts payable 9 887 627 6 885 675 16 773 302 23 290 111 Accrued payroll & vacation pay 832 853 832 853 842 271 Accrued interest on long-term debt 879 M7 2 623 M3 3 502 990 3 062 501 Long-term debt due within one year 2 078 000 2 885 000 4 963 000 4 176 000 CURRENT LIABILITIES 13 678 127 12 394 018 26 072 145 31 370 883 OTIIER LIABILITIES AND DEFERRED CREDITS . 102 150 102 150 145 949 DEFERRED TROJAN NET BILLINGS 78 507 240 78 507 240 61 098 775

$173 412 675 $_221241565 $394 654 240 $366 7M 945 1

Electric System Statement ofNet Revenue For the Years Ended December 31,1985 and 1984 1985 1984 Residential 29 185 739 27 468 910 Commercial & industrial . 30 957 484 29 227 612 Sales for resale & other 6 % 9 097 3 465 907 Steam heating 2 350 294 1 951 206 OPERATING REVENUES 69 462 614 62 113 635 l'urchased power 38 948 338 32 818 100 Steam & hydraulic production 2 434 882 2 371 377 Transmission & distribution 5 801 981 5 964 317 Customer accounting 2 366 694 2 318 867 Conservation expenses 1 985 661 1 580 884 Administrative & general 4 192 746 4 313 395 Steam heating expenses 2 2N 074 2 121 898 Depreciation & amortization 4 854 756 4 663 476 OPERATING EXPENSES .

62 789 132 56 152 314 NET OPERATING REVENUE 6 673 482 5 961 321 Interest earnings on investments 2 546 828 3 246 835 Allowance for funds used during construction 2M 900 163 6(U Other nonoperating revenues 442 936 128 391 OTHER REVENUE .

3 254 684 3 538 826 Contributions in lieu of taxes 4 921 672 4 445 321 Preliminary surveys & investigations 871 N6 Interest expense & discount amortization 1 177 656 1 242 571 Allowance for borrowed funds used during construction . (53 100) (36 400)

REVENUE DEDUCTIONS 6 N6 228 6 522 538 SYSTEAf NETREVENUE $ 3 881938 $ 2 977 609 The accompanying notes are an integral part of this statement.

Electric System Statement of Cheunges in Financial Position For the Years Ended December 31,1985 and 1984 1985 1984 Net revenue for the year 3 881 938 2 977 609 Charges not requiring current funds Depreciation & amortization 5 119 978 4 755 575 Provided from operations 9 001 916 7 733 184 Decrease (increase) in construction fund 358 149 (280 359)

Decrease (increase)in contract charge reserve fund 6 665 948 (665948)

Decrease (increase) in deferred charges 1 851 263 (67 145)

Increase (decrease) in cu rrent liabilities 2 372 M9 (2 821 415)

Issuance of long-term debt . 17 000 000 l'OFAL DISTRIBUTION DIVISION 37 249 625 3 898 317 Provided from operations-Depreciation & amortization 11 567 114 8 936 337 Deferred Trojan net billings 17 408 465 (3 744 393)

TOTAL TROJAN PROJECT 28 975 579 5 19l 944 TOTAL SYSTEAl FUNDS PROVIDED 66 225 204 9 090 261 Additions to utility plant-Net 8 991 097 4 549 779 Long-term debt paid . I 653 000 1 804 000 Increase (decrease)in receivables, materials & prepayments 4 765 021 (920 702)

Increase in conservation bond proceeds account 13 581 410 Increase in debt defeasance account 12 387 400 Increase in segregated cash & bond funds . 2 492 225 48 353 Changes in other items-Net 3 233 (34779)

TOTAL DISTRIBUTION DIVISION 43 873 386 5 446 651 Additions to utility plant-Net 17 306 719 10 375 801 Increase in other segregated funds 250 187 132 499 1.ong-term debt paid 2 755 000 2 645 000 increase in cash & temporary investments 364 019 4 513 163 Change in accounts payable & other items-Net 8 299 654 (12 474 519)

TOTAL TROJAN PROJECT 28 975 579 5 191 944 TOTAL SYSTEAl FUNDS USED 72 848 ve>5 10 638 595 DECREASEIN DISTRIBUTION DIVISION CASH AND INVESTAIENTS . $(6 623 761) $(1548 3M)

The accompanying notes are an integral part of this statement.

Water System Balance Sheet December 31,1985 and 1984 Assets 1985 1984 Plant in service . . 44 487 660 43 602 947 Less-Accumulated depreciation & amortization . 20 583 832 19 370 621 23 903 828 24 232 326 Property held for future use . 100 316 100 316 Construction work in progress 557 508 334 026 UTIUTY PLANT . 24 561 652 24 666 668 SEGREGATED BOND FUNDS 1 213 942 918 163 Cash & temporary investments . 1 466 608 1 516 778 Segregated cash & investments . . 1 563 451 1 856 861 Receivables, less reserves 1985-$18,039; 1984-$18,034 . 810 216 662 192 Materials & supplies, at average cost 288 698 263 331 Prepayments & special deposits 136 408 85 801_

CURRENT ASSETS 4 265 381 4 384 966 DEFERRED CHARGES AND OTHER 64 367 73 656

$30105 M2 $30 043 453 The accompanying notes are an integral part of this statement.

Equity & Liabilities 1985 1984 Balance at beginning of year . 15 013 577 14 579 280 Net revenue for the year 799 195 434 297 RETAINED EARNINGS 15 812 772 15 013 577 LONG-TERAf DEBT . 11 936 469 12 430 352 Accounts payable . . I 117 333 1 381 226 Accrued payroll & vacation pay 294 061 286 116 Accrued interest on long-term debt 433 232 449 703 Long-term debt due within one year 511 475 482 479 CURRENT LIABILITIES . . 2 356 101 2 599 524

$30105 342 $30 043 453

Water System Statement of Net Revenue For the Years Ended December 31,1985 and 1984 19S5 19S4 Residential 3 345 986 3 086 697 Commercial & industrial 3 271 812 3 075 718 Other . 33 941 57 970 OPERATING REVENULS 6 651 739 6 220 385 Source of supply, pumping & purification 986 632 895 933 Transmission & distribution 1 176 126 1 101 621 Customer accounting 440 200 438 481 Administrative & general 1(M8 615 1 091 607 Depreciation & amortization . 1 477 008 1 454 952 OPERATING EXPENSES 5 128 581 4 982 594 NET OPERATING REVENUE 1 523 158 1 237 791 Interest earnings on investments 229 163 248 869 Allowance for funds used during construction 24 600 18 800 Other nonoperating revenues -

64 666 OTHER REVENUE , 318 429 267 669 Interest expense & discount amortization 1 061 792 L n87 363 Allowance for borrowed funds used during construction . (19 400) (16 200)

REVENUE DEDUCTIONS 1 042 392 1 071 163 2

SYSTEM NET REVENUE $ 799 195 $ 434 297 The accompanying notes are an integral part of this statement.

Water System Statentent of Citanges in Financial Position For the Years Ended December 31,1985 and 1984 1985 1984 Net revenue for the year 799 195 434 297 Charges not requiring current funds Depreciation & amortization 1 498 717 1 466 020 Provided from operations 2 297 912 1 900 317 Change in other assets-Net 27 813 44 833 TOTAL FUNDS PROVIDED 2 325 725 1 945 150 i

Increase (decrease)in receivables, materials & prepayments 224 930 (28 153)

Decrease (increase) in current liabilities . 272 419 (37 077)

Additions to utility plant-Net 1 393 701 749 695 Increase in segregated cash & bond funds . 2 366 313 343 Long-term debt paid . 482 479 472 478 TOTAL FUNDS USED 2 375 895 1 470 286 INCREASE (DECREASE) IN CASH AND INVESTA1ENTS .

5 (50 170) 5 474 864 Th? accompanymg notes are an integral part of this statement.

Notes To Financial Staternents December 31,1985 Sinnmary of Significant Accounting Policies:

GENERAL-The Eugene Water & Electric Board, an administrative unit of the City of Eugene, Oregon, is responsible for the ownership and operation of the electric and water systems, previously described as the electricand water utilities. It has the authority to fix rates and charges forcommodities orservices fur-nished. The Board's policies conform to generally accepted accounting principles for public utilities and the accounting requirements of the Federal Energy Regulatory Commission. Significant policies are described below.

UTILITY PLANT AND DEPRECIATION-Utility plant is stated at original cost. Cost includes labor, materials and related indirect costs such as engineering, transportation and allowance for funds used during construction. -

The cost of additions, renewals and betterments is capitalized. Repairs and minor replacements are charged to operating expenses.

The cost of property and removal cost, less salvage, is charged to accumulated depreciation when property is retired.

Depreciation is computed using straight-line composite rates which are equivalent to approximately 3.2% of the Electric System Distribution Division and 3.4% of the Water System original costs of depreciable utility plant. Depreciation for the Trojan Plant is computed using the 6% sinking fund ,

method based on a 33-year plant life.

[i INVESTAIENTS-Investments, principally in U.S. Government securities, are carried at amc,rtized cost plus accrued interest which approximates market.

OPERATING REVENUE-Operating revenues are recorded on the basis of service delivered. Approxi- ~

mately 13% of 1985 and 1984 Electric System operating revenues were the result of sales to one mdustrial customer. ,

OTHER ACCOUNTING POLICIES-Debt premium, discount and expenses are being amortized over the terms of the respective issues. Nuclear fuel amortization is based on the quantity of heat produced with-out provision for salvage value.

Exng-Terrn Debl: 1985 Electric Utility System Revenue Bonds Series A,8-1-60 issue,3-4%, due 1986-2004 13 968 000 Series C,8-1-66 issue,4.35%, due 1986-99 2 610 000 Series D,8-1-68 issue,4.90%, due 1986-99 3 510 000 Series E,11-1-75 issue,6-6.50%, due 1986-90 2 825 000 22 913 000 l Less unamortized discount 126 291 22 786 709 Electric Utility System Conservation Revenue Bonds Series 1985, 9-1-85 issue, 5.50-9.20%, due 1986-2000 . 16 345 000 Distribution Division long-term debt 39 131 709 Trojan Nuclear Project Revenue Bonds, Series of 1977 Serial Bonds,4.60-5.75%, due 1986-90 . 48 375 000 Term Bonds,5.90%, due 2009 83 700 000 132 075 000 Less unamortized discount 1 734 693 Trojan Project long-term debt 130 340 307 ELECTRIC SYSTEA1 LONG-TERAI DEBT S169 472 016

1985 Water Utility System Revenue Bonds 8-1-66 issue,4.33%, due 1986-99 1 660 000 8-1-68 issue,4-4.90%, due 1986-99 1 330 000 12-1-82 issue,7.25-10.125%, due 1986-2002 9 075 000 Debt assumed through annexation,3.60-4.80% due 1986-90 48 018 12 113 018 Less unamortized discount 176 549 WATER SYSTEAf LONG-TERAf DEST $ 11936 469 Totallong-ter.a debt requirements during the years 1987 through 1990 are as follows:

Electric System Water System Distribution Division Trojan Conservation Other Sinking Revenue Revenue Fund Bonds Bonds Maturities Deposits 1987 690 000 1 285 000 3 015 000 462 3M 189 627 1988 730 000 1 430 000 3 155 000 497 593 1989 780 000 1 700 000 3 305 000 522 652 1990 830 000 1 920 000 3 475 000 555 239 The Board has observed, performed and fulfilled its covenants and obligations as required by resolu-tions authorizing the issuance of revenue bonds.

In October the Board approved a Resolution segregating $12,387,400 from current cash and temporary investments into a debt defeasance fund to pay the principal and interest at maturity of outstanding Elec-tric Utility System Revenue Bonds. The Bonds remain a liability as the funds have not been placed in an irrevocable trust and, as such, the Board retains control over the funds.

The Board and the Bonneville Power Administration (BPA) have entered into the Bond Financing Agreement to fund BPA's share of weatherization measures with proceeds from the Electric Utility Sys-tem Conservation Revenue Bonds, Series 1985, issued September 25,1985. Under terms of the agree-ment, the Board has agreed to expend the 1985 Bond proceeds in accordance with terms of the Bond

) Financing Agreement and the Program Agreement, and BPA has unconditionally agreed to pay the debt l service and any other costs associated with the 1985 Bonds regardless of the performance of the Board. A receivable is recorded by the Board for the difference between the unspent bond proceeds and the out-standing principal and acccrued interest on the Bonds. There is no effect on the Electric System statement of net revenue and, therefore, any receipts and expenditures related to the Bonds are not included in such statement.

Trojan Nuclear Plant:

The Board has assigned to Bonneville Power Administration (BPA) and other public agency partici-pants its 30% share of the output from the Trojan Nuclear Plant. The Board will receive payments and credits (net billings) equal to its share of all Plant costs, including decommissioning, spent fuel storage and debt service whether or not the Plant is operable or operating and notwithstanding the suspension, interruption, interference, reduction or curtailment of Plant output. Net billi..gs may vary from expenses each year but are recognized in each accounting period only to the extent of current expenses. Since there is no effect on net revenues of the Electric System, net billings and operating expenses are not included in the statement of net revenues. The accumulated excess of net billings over expenses is stated in the bal-ance sheet as " Deferred Trojan Net Billings." Following is an analysis of changes in this account during 1985 and 1984:

1985 1984 Total net billings 59 653 495 42 550 000 Add interest earned 2 612 980 3 009 815 Less Operation & maintenance < 3enses 23 339 314 21 882 556 Depreciation & amortization 11 010 939 8 377 444 Other fuel expense 2 192 119 10 640 878 Interest expense 8 315 638 8 403 330 INCREASE (DECREASD IN DEFERRED TROJAN NET BILL!NGS . $17 408 465 $(3 744 393)

Accounts payable and other fuel expense in 1983 include spent fuel storage charges of $8,980,782 for the Board's share of fuel used prior to April 7,1983.

l l

Power Supply Resources:

The Board receives approximately 18% of its power requirements from its own generating resources and 82% from BPA and other agencies under contractual agreements expiring from 1986 to 2017. BPA provided approvimately 81% of the Board's purchased power in 1985 (1984,78%).

Retirement Benefits:

Substantially all employees are covered under the State of Oregon Public Employes Retirement System (PERS) plan, a contributory defined benefit plan, and supplemental retirement plans. Pension expense for 1985 was $2,115,477 for the Electric System and $464,373 for the Water System (expense for 1984 was $1,927,278 and $423,061, respectively), including amortization of the unfunded liability for the present value of all past normal costs over a 30-year period. The Board's policy is to fund pension costs accrued. The date of the latest actuarial valuation of the PERS plan was December 31,1982 and the sup-plemental plans was January 1,1985. PERS does not allocate unfunded liability, vested benefits or assets available for benefits between the Board and the City of Eugene; therefore, this information is not pre-sented. For the supplemental plans, the actuarially computed present value of vested benefits was 9,600,239 and the net assets available for benefits were $2,145,617 ($3,832,273 and $2,092,338, respec-tively, for 1984). The assumed rates of return used in determining ti e actuarial value of vested benefits were 7.5% for the PERS Plan in both years, and 8% and 6% for the supplemental plans for 1985 and 1984, respectively.

In addition to pension benefits, the Board provides certain health care and life insurance benefits to re-tired employees. The cost of these benefits is recognized as expense as claims are paid and for 1985 was 922,300 for the Electric System and $92,700 for the Water System (expense for 1984 was $378,840 and

$83,160, respectively).

Conunitments:

During 1983, the Board was a signatory to a residential conservation agreement offered by Bonneville Power Administration (BPA) to all utilities in the Northwest region. The agreement provides substantial BPA funding of conservation measures in the Board's service area. As a signatory, the Board was subject to a " contract charge" levied against all generating utilities for recovery of a portion of the conservation funds expended in the region. Based upon the Board's share of projected conservation funding available '

from BPA, the Board in 1983 segregated $6,000,000 from current cash reserves to provide for the esti-mated maximum future annual contract charge payments.

During 1985, BPA offered signatories an amendment which replaced the contract charge with cost sharing whereby a participating utility shares in the funding of conservation measures installed in its service area. The Board accepted the amendment and is currently contributing 10% toward such funding. This amount will approximate $500,000 per year through 1988. Accordingly, the segregation was eliminated and the amount in the contract charge reserve fund was returned to cash and temporary investments.

Reclassifications:

For comparability, certain 1984 amounts have been reclassified to conform with account classifications used in 1985. There was no effect on previously reported net revenue. <

1

1 i i i i i + + 1 1 1 1 1 + 1 i  !  !

. . . . . . . . . . . . . . . . . . FINA. NCIAL STATEMENT .;

4 i + . i + + 4 i i i . i i t +  ! l 1

)1 1_ t  ! i i i l l

! t 1 i s  !  ! + 1 1

• 1 i  ! t i i < 1 i  ; i i  ; i  ! t j I

\ i t i i i f i + i i + 4 + 1 i i + f I $ l 9 4 i l l l 1l i t t + i 1 i i + i > 1 + + t +  ! 1 i i / i 4 4 i + i i l

.l

< 1 , < + . , . < , . , . , . 1 i i i i <iiiii! .

, . . . , , , , , . . . , , i . . . . t 1 , , , , . i .i

. . . . . . . . . . . . . . . . . . . . . . . . . . . .a l

s + i . , . . . . , , , , . . , i  ! i  ! i i < i i , i  !

l

, , , . < . . . .  ! . i , ,  ! . i < 1 i i i . , , i ,

,i I

+ 4 i i 9 i 4 9 i * . . 4 s i 4 i + 4 + f f l + l 1 i f .,

l

+ , . . . . . < . . . . i , . ,

i i i , i  ;  ; i j , i i :

l

+

i i

+

1 i

TRIC  ;

0 4 . . [ 4 . , 6 d F 4 h .

'f f f f . Y f f k

. . . . . . . . . . . . . . . . . . . . . . 99- a

. , . . . . , .  ; i q~

p

, . . . . . < i , i i

+ l . .

f . f f

• .  ! . +  ! A f f

>. . . . . . . . . . . . . . . . . . . . T l l

. 4

.

• 9 s S 9 . 4 f f 5.

f f f h f

., + , , , . i ,  ; ,

.g

. , . . , . , , , +

+ , , < < + 1 ,

'i. 1 . e . 4 . . . . . . . O , . . . . .

< , . , . , , . , . , 1 , , 1 9+

i

,i , ,. ,o

+ + + .

+ 1 + i e  ? 1 . . . + 1 9 1 i i x//

1 I'

[

. . , , . . . . . . . , . , , . . . , .  ! i,, yENTY, ,

. . . . . . . . . . . . . . . . . . . . ..... 'W i

{h 9 4 $ f 5 l l t . ,t' N f , j 9 I h f h f f I i f f f f 4 . $ h $ 6 f 1 4 . . l , I i $ A i f i i f i f f h

$ . 9' f h .' i 4 . 5  ?

• i  ! h f f . l 1 k i i i  ! i f f,

- 1 1

t + . + + . 4 + t + i 1 + l 1 i + 9 i  ; 4 l l l l 1 i /\

. . . . . . . . . . . . . af . . . . . . . . . . . . . .

l l f f 9 l f f 0 f h l $ N  !  ! ,5 h A ,0 i i + 1 [ f f l

l. . . . . . . . . . . . . . . . . . . . . . . . . . . .

t i 9 i i , 9 i I i f i 1 i I l 1 l 1 / j j l 1 l l l f A

MANAGEMENT ADVISORS, CONSULTANTS EXECllTIVE A1ANAGEA1ENT fean Reeder General N1anager Secretary Ale! Darneivood Assistant to the General N1anager Donald \'ander:anden Director, Accounting & Finance / Treasurer David folinson Controller / Assistant Treasurer fantes llroien Director, Operations & Engineering Randy llerggren Engmeering Alanager Rosernary Edicards Director, Administrative Service 3/ Assistant Secretary Garry Kunkel Director, Power hianagement ADVISDRS AND CONSULTANTS

\Vindsor Calkins General Counsel Coopers & Lybrand Independent Auditor lloteard Needles Tamnten & Elergendoff Independent Engineer / Consulting Engineer Scinvabe, \Villiarnson, \Qiatt, Afoore & Roberts Special Counsel

\Vood Dairson Sanitit & llellutan IkmJ Counsel La:ard Tri>res & Co.

Financial Consultant Coates, Kenney, Gava::i & \Vitt, Inc.

Consulting Actuaries

/

Ta rer r.w fr".mct.d ,tatentnut, b4 I alsmg pitsratum, then Itw t

o

-