Last Tuesday night, the Evansville Common Council heard an important presentation by WPPI, Wisconsin Public Power, Inc. In their literature, they say they are "a statewide power company owned by 40 municipalities that operate electric utilities. These community owned utilities purchase all of their electric requirements from WPPI.... WPPI is the fifth largest electric utility in Wisconsin with revenues of more than 314 million."
The question is why? Why does Evansville want to join this cooperative? The answer lies in the fact that currently we are a customer of Alliant Energy. We purchase energy and also purchase services at retail rates as needed.
When we join WPPI, we will be an "owner", have a seat on the board of directors, and we as a community will have access to "services" at fellow owner rates rather than at retail rates.
Evansville Water and Light officials have indicated to The Observer that it is too early to determine the exact details, but there should be savings on the power side and also on the purchased services side. Over the past several years it would have been much better if we had had such an arrangement for shared services.
While there is a rate filing scheduled for September 2006, it has not been determined precisely what the net amount of the filing will be. It is important that the utility file rates so as to achieve a return of 7% in order to provide for the necessary replacment capital for mains etc. It is also important to generate funds for the "buy in" to WPPI. The utility will contribute funds so we are an equity stake holder in WPPI.
Several neighboring towns such as Brodhead-Juda and Stoughton have recently joined WPPI and have given very positive reviews.
Stay tuned to The Evansville Observer as I follow this development.
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