Background

Background

At its Monday, June 3, 2024, meeting the Cadott board did not take action on a preliminary agreement for the sale of Cadott’s electric utility to Chippewa Valley Electric Cooperative (CVEC). In July 2024, the Cadott board opted to put the preliminary agreement with CVEC on hold while it engages EPS Engineering in another study of its electric system and Ehlers, Inc., for an electric rate case study.

CVEC proposed combining Cadott’s electric system with CVEC after years of concern, including about such matters as:

  • Aging power lines, poles and equipment Cadott does not have the revenue to upgrade.
  • The urgent need to increase the system’s capacity – some lines are operating at 120 percent of rated capacity, which is an unsafe and unsustainable situation.
  • The inability to add new customers. This limits Cadott’s growth – the number of residential and business electric customers who can join in sharing the cost of today’s, and tomorrow’s, Village services and amenities.

In December 2023, Chippewa Valley Electric Cooperative began discussions with the Cadott board to explore partnering with Cadott, integrating the Village electric system with the Cooperative’s, adding Cadott electric customers as Cooperative members with CVEC taking on the financing to make the required Cadott electric system investment.

CVEC has maintained and operated the Cadott electric system since 2017, which occurred when Cadott was no longer able to offer the compensation necessary to attract and retain qualified linemen.

Phases To Approval

Phases To Approval

Should the Village of Cadott board approve the preliminary agreement for its system to combine with CVEC’s, phases to approval include:

PHASE 1

The preliminary agreement would be submitted to the Public Service Commission of Wisconsin (PSCW).

PHASE 2

The PSCW would conduct its due diligence on behalf of Cadott and its electric customers to determine if the preliminary agreement is in the best interests of the public.

PHASE 3

The PSCW would publish its Final Decision on the preliminary agreement, determine its approval and if approved, what conditions it imposes on the agreement.

PHASE 4

The preliminary agreement, if approved by the PSCW, would be presented in a referendum to Cadott voters.