The challenge:

The challenge:

The Village of Cadott (Cadott) board has determined that it must act to address the condition of its electric system:

  • Portions of Cadott’s electric system are over capacity subjecting the electric system to unacceptable risks of extended outages.
  • Cadott’s electric system has no capacity for growth, but the Village must grow – add residential and business electric customers – to broaden its tax base so that today’s, and tomorrow’s, cost of Village services and amenities are spread across more consumers – lowering the shared cost per individual household.
  • When something breaks on Cadott’s power lines, it is very difficult to get replacement parts – like trying to find parts for any piece of equipment decades out of manufacture.

In July 2024, the Cadott board opted to put the preliminary agreement with CVEC on hold while it engages EPS Engineering for another study of its electric system and Ehlers, Inc., for an electric rate case study.

Initial CVEC estimates indicated that it would require a more than 40 percent rate increase over several years for the 840-some Cadott electric customers to pay for the cost of keeping and upgrading its electric system investment on their own.

A June 2023 engineering study commissioned by the Village of Cadott board reported that the required Cadott electric system investment consists of an estimated $7.45 million to replace:

  • 2 substation transformers and associated disconnect switches and connection equipment
  • 500 poles and cross arms to support new electric conductors
  • 491 spans of overhead electric conductors
  • 227 pole and pad mounted distribution transformers
  • Voltage control systems, fusing and regulators

An additional $250,000 would be required to replace the meters.

Combining the Cadott and Chippewa Valley Electric Cooperative (CVEC) electric systems best serves Cadott electric customers.

Combining the Cadott and Chippewa Valley Electric Cooperative (CVEC) electric systems best serves Cadott residents.

The solution:

The solution:

A preliminary CVEC analysis showed that bringing the Cadott and CVEC electric systems together with CVEC taking on financing the investment required to upgrade Cadott’s system would lessen the rate impact on Cadott electric customers by up to half or more and only be applied incrementally as the project progressed.

The savings come from CVEC being able to leverage its economies of scale in operations and the ability to use its own crews to do most of the electric system upgrade work (rather than hiring outside contractors).

Cadott and CVEC have enjoyed a long-time working relationship:

  • Cadott has contracted with CVEC since 2017 to maintain and operate its electric system. Cadott had operated and maintained its electric system with its own staff until it was no longer able to afford the compensation levels required to recruit and retain experienced linemen.
  • CVEC is a known and trusted partner that has long proven its dedication to serving Cadott.
  • CVEC is a not-for-profit, cost-of-service electric power provider completely focused on service to its members.
  • The service territories of Cadott and CVEC are next to each other and interconnect in places. The systems could be backup resources for each other, benefiting both Cadott electric customers and CVEC’s current membership.