The Eugene Water and Electric Board has signed a multi-million dollar contract with a firm to help decommission the Leaburg Dam.
The Leaburg Hydroelectric Project stopped generating power in 2018, following concerns about seepage and seismic vulnerability. In early 2023, EWEB Commissioners voted to remove the dam.
"When we went to look into what it would take to rebuild the canal to current seismic standards, the price tag for that was extremely high," said EWEB Electric Generation Manager Lisa Krentz. "And it was not warranted based on the low amount of power that the project produces."
This month, EWEB approved a ten-year, $18.5 million contract with McMillen Inc. to help manage the project. The firm previously worked on the Klamath River Restoration Project, which succesfuly removed four dams.
Krentz said EWEB has never decommissioned a facility like this, and sought a firm with experience. She said McMillen will help EWEB navigate the design process, perform community outreach, and meet government regulations.
“This is not a contract for shovels in the ground to actually remove the facility," said Krentz. "This is for the work that gets us to that point.”
Rate Increases
EWEB estimates that the removal will cost between $175 million and $200 million. The utility plans to partially fund the project through raising prices on its customers.
This year, EWEB imposed a 4% rate increase to support the dam removal. It's also planning a 1% increase in 2026, and a 3% increase in 2027. These figures don't include rate increases meant for other purposes.
"We're starting to put money into an account right now, knowing that ultimately the price tag for this project is quite large, so that it doesn't sneak up on our customers," said Krentz.
However, Krentz said EWEB will also work with McMillen to find alternative sources of funding—such as competitive grants—to offset the costs on Eugene residents.
EWEB expects to begin deconstructing the dam by 2032. It is currently seeking federal approval to move forward with its plan.
