Kyle Roadman, EPUD General Manager
Hello Emerald Customer-Owners,
As we kick off 2026, I’m excited to announce a significant change to EPUD’s power supply portfolio that will protect our customers from future rate increases. After owning and operating a power plant at the Short Mountain Landfill for more than 35 years, we recently signed an agreement to close down this facility by the end of 2027. In return, we’ll receive financial compensation that ensures we can continue providing the low-cost, reliable service you deserve.
Decision Making
This was not a decision we made lightly. Our power plant at Short Mountain has long provided low-cost, reliable electricity to meet about 4% of EPUD’s needs. We’ve invested tens of millions of dollars into the system while helping to capture a harmful landfill gas (methane) on behalf of everyone in Lane County. Our staff and Board are proud of this legacy and would not give it up without good reason.
Like all major infrastructure projects, however, the time comes when a facility needs to be either replaced or repurposed. In our case, the engines we maintain are older and less efficient than current models, requiring substantial (and expensive) maintenance. We looked seriously at replacing them with newer models, but frankly it was very hard to make this pencil out for customers.
This was even more evident once Lane County (the owner of the landfill) signaled its desire to reduce the waste supply at Short Mountain through a new diversion project. The waste that goes into the landfill is what produces the fuel (methane gas) we use to generate electricity.
Higher infrastructure costs + less fuel availability = bad economics. Luckily, we found an alternative that avoids us having to pass on this impact to our customers.
Renewable Natural Gas
Over the past decade, industry trends have moved away from landfill gas-to-electricity projects and to a model known as renewable natural gas (RNG). With RNG, landfill gas is converted to a nearly pure form of methane and injected directly into a natural gas pipeline. Because this fuel is considered renewable, it can be sold at a premium to generate significant revenue for those able to produce it.
In late 2024, EPUD solicited a Request-for-Proposals (RFP) to identify a partner that might help install an RNG project at Short Mountain. Our search led us to Waga Energy, an industry leading firm with proprietary RNG technology. We then spent most of 2025 negotiating with both Waga and Lane County to make RNG at Short Mountain a reality.
Signing the Deal
Finally, in late December 2025, after approvals from each of the governing Boards, all three parties signed a set of transaction documents committing to an RNG project:
Project Structure
The broad outlines of the new RNG arrangement include:
- Waga Energy will install, own, and operate a new RNG facility at Short Mountain
- Waga Energy will share RNG sale proceeds via a royalty to EPUD and Lane County
- EPUD will decommission the current power plant by December 31, 2027
- EPUD will secure replacement power from the Bonneville Power Administration (BPA)
- EPUD will be compensated for replacement power from the RNG royalty
- EPUD and the County will evenly split any remaining royalty
- This arrangement will last for 15 years from the new facility’s commercial operation date
Among the key provisions for EPUD is the requirement to decommission our current power plant by the end of 2027. After this date, we’ll acquire replacement power from our current wholesale provider (BPA), while being compensated in full through the RNG revenue. This will ensure EPUD customers are “made whole” and protected from future rate increases regardless of any changes in landfill practices (waste diversion) down the road.
BPA is widely regarded as the most reliable, low-cost provider of wholesale electricity in the region and has agreed to supply us with the entire amount of energy currently coming from our Short Mountain plant.
Beyond the financial benefits, this transaction will also allow EPUD to best focus on our core mission of providing safe, reliable, low-cost power. We’ve taken major strides to improve reliability in recent years and offer new customers services. The revenue generated from this RNG project will allow us to double down on these investments while keeping our service affordable.
Next Steps
Over the next two years, EPUD staff will be working with our partners to facilitate the new RNG project. This includes obtaining permitting, installing infrastructure, and ramping down power plant operations. This will be a substantial change for our organization and I’m committed to keeping customers well informed of our progress.
We’ll also be going through a new strategic planning process later this year, during which we’ll discuss the RNG project and its implications for our future. Stay tuned for more information about this effort.
For additional information about the the RNG project and our new partners, please see the official press release at the link below:
Thank you for being a customer and please reach out with any questions. All the best.
Please stay safe,
