Stronger Together: Cadott

What is happening:

The Village of Cadott (Cadott) board has wrestled for several years with how to affordably solve the problem of its aging electric system.

Some areas of the system operate at 120 percent of rated capacity and replacement parts for the power lines are impossible to find, exposing Cadott electric customers to unacceptable risks of extended outages.

Last year, Cadott’s board engaged EPS Engineering to do a study of the Village electric system. The firm’s June 2023 study indicated it would cost $7.45 million to bring the Cadott electric system’s power capacity to acceptable industry and safety standards. Replacing the aging meters at $250,000 would be another needed upgrade.

What is next:

The Village of Cadott board members are considering a preliminary agreement for the sale of Cadott’s electric utility to Chippewa Valley Electric Cooperative (CVEC).

Merging the Cadott electric system with the larger, not-for-profit and consumer-owned CVEC electric system would make the cost of upgrades – the investment required to assure the continued safe and reliable operation of Cadott’s electric system – more affordable to Cadott electric customers.

Even if there is approval of the preliminary agreement by a majority of the Cadott board, there are many steps to adoption.

phases to Approval

What this means to you:

The Cadott board’s goal is to make this investment in its electric system – essential to its safe and sustainable operation – in a manner most affordable to its electric customers.

For CVEC members, there will be no change to their rates as a result of this proposed agreement.

A preliminary analysis shows no affordable path for Cadott electric customers to carry this cost burden alone. New bonds would have to be sold to fund the investment, putting more debt on Cadott finances and, initial CVEC estimates indicate that:

A rate increase of more than 40 percent over several years would be necessary for Cadott electric customers to pay for its electric system investment upgrades on their own.

Preliminary analysis shows combining Cadott’s electric system with CVEC’s would lessen that rate impact by up to half or more and only be applied incrementally as the project progressed.

While a rate design study by Power System Engineering of Madison, Wisc., is underway, its recommendations will not be available until mid-summer 2024.

All parts of the proposed agreement, including rate design, are subject to PSCW determining that they are in the best interests of the public.

Stronger Together Phases:

PHASE 1

Cadott board votes, rate study completes, Preliminary Agreement submits to Public Service Commission of Wisconsin (PSCW).

PHASE 2

PSCW conducts due diligence.

PHASE 3

PSCW publishes Final Decision.

PHASE 4

If PSCW approves, Cadott schedules referendum.