Citizens in Two Rivers on average pay higher utility rates than their neighbors in Manitowoc.
This led to some Cool City residents asking “Will the city one day be able to purchase their basic utility needs from Manitowoc to balance the so-called economies of scale?”
City Manager Greg Buckley was on WOMT’s Be My Guest Program this week, where he revealed that he asked this often and acknowledges it’s a great question.
However, many legal and logistical roadblocks stand in the way.
The first of those is that significant infrastructure investments would need to be made.
“Each city’s water systems were developed from the center outward, and we don’t have real robust distribution systems. That is we don’t have real big pipes when you get out to the periphery,” he explained. “We have run those numbers before. We would also be paying for an upgraded water plant that we did and have a couple of years of debt service left on.”
Buckley went on to say that they are currently under contract with a major energy supplier that provides the city electricity.
“We are one of 51 co-owners of WPPI Energy based in Sun Prairie, so we do have that group buying power for energy,” the City manager said. “That’s a long-term commitment, and frankly I think it’s a long-term commitment that has served us well. It wouldn’t be possible contractually to buy energy from Manitowoc Public Utilities.”
Meanwhile, customers recently received a surprise on their electric bill as the result of issues at two WPPI contract-purchased coal-powered plants.
“Both of those plants had mechanical issues, unanticipated, this summer and had to shut down,” Buckley said. “That forced WPPI to buy energy elsewhere on the market, and that caused…our local bill to go up. That dropped in September, and I anticipate it will drop again this month.”
Buckley added, “Admittedly, our water and sewer services are amongst the highest in Northeast Wisconsin but the electric rates are not nearly as high as what people make them out to be.”
