Kaukauna moves ahead with hydro plant plan

From an article by Larry Avila in the Appleton Post-Crescent:

KAUKAUNA — The scene outside Jeffrey Feldt's office window is dominated by the sight and sound of water rushing out of two aging hydro power plants.

This will change in the spring when "Old Badger" and "New Badger," which have operated reliably together for more than 80 years, will be shut down and the area transformed into a construction site, said Feldt, general manager of Kaukauna Utilities. The time has come to replace the power-generating facilities, the first built in 1908 and the other in 1928.

After a decade-long process, which included assorted environmental and economic feasibility studies as well as securing state and federal regulatory approval, the Kaukauna Common Council approved a $44,875,000 bond issue Jan. 17 to cover the costs of building a new $25.5 million hydro power plant and rebuilding the canal — for $10.5 million — which supplies water to the facility. Work is scheduled to start in May with construction expected to last 18 months, city officials said.

Modernization will come at a price, likely in the form of higher electrical rates for the utility's 15,000 power customers in 2013. The utility plans to file a request with the state Public Service Commission before the end of March to seek a 6.5 percent rate increase to generate more revenue to repay the bonds. Rising expenses

Bill Roloff, owner and president of Roloff Manufacturing in Kaukauna, recognizes the benefit of updating the power plants and understands higher electric bills are coming.

"Personally, it's something that's needed," said Roloff, whose business produces assorted castings and is a big power user.

He estimates electricity costs represent 15 percent of his company's overall annual expenses. A rate increase may raise his power costs up to 20 percent, but Roloff sees that as a worst-case scenario.