Chippewa Valley Electric Cooperative

Chippewa Valley Electric Cooperative (CVEC) is a well-managed, financially strong not-for-profit electric cooperative that has served its members, now numbering nearly 7,000, since 1936.

Like most electric cooperatives in the United States, CVEC serves a more rural community with fewer members spread out over more service territory than is typically found with investor-owned utilities (IOUs) and municipally owned utilities (munis). With similar fixed costs as IOUs and munis, electric cooperatives must operate with exceptional professionalism and efficiency so that they provide safe, reliable electric service to members at the lowest practical rate.

More information on the Cooperative can be found at its website, cvecoop.com

Combining with the Village of Cadott

Combining with the Village of Cadott

Chippewa Valley Electric Cooperative

CVEC and Cadott appreciate that combining their electric systems is a big idea. The preliminary agreement to do so is on hold while studies authorized by the Cadott board in July 2024 – with EPS Engineering for another study of its electric system and Ehlers, Inc., for an electric rate case study – are completed.

Should the Cadott board approve the preliminary agreement to combine its electric system with CVEC’s, there would be outreach to Village of Cadott electric customers to discuss why this option is the best, most affordable solution to address the safety and reliability conditions of Cadott’s electric system. Discussions would include how a rate would be designed specifically for Cadott electric customers.

For Cooperative members, what is important to understand is that merging the two electrical systems is a financially sound response not just to Cadott’s electric system problems but to their electric customers’ and CVEC members’ need for safe, reliable electric service at the lowest practical rate:

  • CVEC member rates would not be used to subsidize the Cadott system upgrades.
  • Rates proposed for Cadott electric customers are expected to support the work plan and are anticipated to be up to half or less than if Cadott had to finance the project on its own.
  • The scope and cost to bring Cadott’s electric system up to safety and industry standards as presented by the engineering consultant in its June 2023 study is similar in size to most other CVEC standard work plans carried out over several years.
  • CVEC would carry out the update to Cadott’s electric system in a cost-efficient manner, using its own crews and equipment for most of the work.
  • Cadott has more than 38 accounts per mile of line – compared to CVEC at about 6 per mile of line – making it exceptionally cost efficient to service its electrical system.
  • CVEC already maintains and operates Cadott’s electric system and has done so since 2017.
  • The two electric systems are adjacent to each other and in some places intersect. If Cadott’s system is updated, both CVEC and Cadott would be able to serve as a back up to the other in case of a power loss, benefiting both Cadott electric customers and CVEC members.
  • Cadott’s 840-some electric customers becoming members of the Cooperative would introduce more consumers to share in the fixed costs of operating CVEC’s system. Adding more members to the Cooperative helps keep current member facility charges and rates as low as practically possible.