Public Service Commission of Wisconsin Inter‐Municipal Water Sales and Agreements ‐ 2012 In 2012, 55 public water utilities in Wisconsin purchased water wholesale from 33 other entities, 28 of which are other public water utilities, mostly in the Great Lakes Basin. These purchasing utilities represent over 250,000 customers. Chart 1 below shows that wholesale water sales comprise approximately 10% of the total volume of water sold in the state. Chart 1: Wholesale Volume as Percent of Total Sales in Wisconsin Wholesale Water in Wisconsin 2012 9.9% Water Pumped for Resale Water Pumped for Self‐Use Source: PSC Annual Reports, 2012 Wholesale Purchasers The City of West Allis is currently the largest municipality that purchases its entire water supply from another utility. While there are exceptions, utilities that purchase water at wholesale generally have higher retail rates to their customers compared to their class averages. Chart 2: Average Residential Quarterly Bills (18,750 gal) Average Quarterly Residential Bill $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $‐ AB C Wholesale Purchasers D Class Average Source: PSC Bulletin 25, 2013 1 Wholesale Providers Milwaukee and Green Bay are the two largest wholesale water providers in the state, with combined sales of over 1.5 billion gallons of water to 12 other utilities. Another large water provider in the state is the Central Brown County Water Authority, which purchases water at wholesale from Manitowoc and resells water at wholesale to six utilities in Brown County. The largest wholesale providers in the state are shown below. Chart 3: Wholesale Water Sold in Wisconsin Wholesale Sellers by Volume MILWAUKEE WATER WORKS (31%) GREEN BAY WATER UTILITY (24%) KENOSHA WATER UTILITY (16%) MANITOWOC PUBLIC UTILITIES (10%) OAK CREEK WATER AND SEWER UTILITY (5%) APPLETON WATER DEPARTMENT (4%) ASHWAUBENON WATER AND SEWER UTILITY (4%) SHEBOYGAN WATER UTILITY (3%) RACINE WATER WORKS COMMISSION (2%) MADISON WATER UTILITY (1%) OTHER (2%) Source: PSC Annual Reports, 2012 2 Other Water Agreements Besides agreements to provide wholesale water service between communities, municipalities can enter into other types of water service agreements. Thirty‐one utilities have municipal interconnection agreements in which water can flow both ways as needed, usually on an emergency basis, or emergency standby agreements to cover times of unforeseen demand such as firefighting or large interruptions in service. While the PSC does not regulate these agreements, there are some best practices that make for good water service agreements. The best water agreements contain terms that clearly define: Maximum flow rates and durations Notice requirements for exceeding the maximum in emergencies Minimum pressure Clearly defined meter responsibilities and ownership Fire protection Considerations for system growth Wholesale Providers and Customers Selling Entity Purchasing Entity Adams Municipal Water And Sewer Utility Village of Friendship Water Utility AFP Corporation Appleton Water Department Clear Lake Municipal Water Utility Ashwaubenon Water And Sewer Utility Town of Lawrence Water Utility Village of Hobart Water Utility Bellevue Water Utility Ledgeview Sanitary District No. 2 Beloit Utilities City of South Beloit, Illinois Cashton Municipal Water Utility Central Brown County Water Authority Melvina Municipal Water Utility Town of Grand Chute Sanitary District No. 1 Village of Sherwood Water and Sewer Utility Waverly Sanitary District Village of Allouez Water Department Bellevue Water Utility De Pere Water Department Village of Howard Water and Sewer Department Town of Lawrence Water Utility Ledgeview Sanitary District No. 2 Danbury And St. Croix Chippewa Indians Danbury Sanitary District Edgerton Municipal Water Utility Green Bay Water Utility Fulton Water Utility City Of Ironwood, Michigan Kenosha Water Utility City of Hurley Water Utility Ashwaubenon Water and Sewer Utility Town of Scott Water Utility Village of Hobart Water Utility Bristol Water Utility Village of Pleasant Prairie Water Utility Town of Somers Water Utility 3 Kimberly Municipal Water Utility Combined Locks Water Utility Darboy Joint Sanitary District No. 1 Madison Water Utility City of Fitchburg Utility District No 1 Village of Maple Bluff Municipal Water Utility Village of Shorewood Hills Water Utility Waunona Sanitary District No. 2 Manitowoc Public Utilities Central Brown County Water Authority Menasha Electric And Water Utilities Milwaukee Water Works Town of Menasha Utility District Brown Deer Public Water Utility Butler Public Water Utility Village of Greendale Water Utility Village of Menomonee Falls Water Utility Mequon Municipal Water Utility Milwaukee County Institutions New Berlin Water Utility Shorewood Municipal Water Utility Wauwatosa Water Utility West Allis Municipal Water Utility City of Hurley Water Utility Town of Pence Municipal Water Department Bellevue Water Utility Village of Fox Point Municipal Water Utility Glendale Water Utility Mequon Municipal Water Utility Village of Whitefish Bay Water Utility Montreal Municipal Water Utility North Shore Water Commission Oak Creek Water And Sewer Utility Village of Caledonia Water Utility Franklin Municipal Water Utility Onalaska Municipal Water Utility La Crosse Water Utility Prairie Du Chien Municipal Water Utility Bridgeport Sanitary District Racine Water Works Commission Sheboygan Water Utility Village of Caledonia Water Utility Sister Bay Utilities Liberty Grove Sanitary District No. 1 Spooner Municipal Utilities Beaver Brook Sanitary District No. 1 Town Of Somers Water Utility Racine Water Works Commission Village Of Caledonia Water Utility Wind Point Municipal Water Utility Waterloo Water And Light Commission Wausau Water Utility Town of Portland Sanitary District No. 1 Kohler Municipal Water Utility Sheboygan Falls Utilities Village of Brokaw Water Utility Rib Mountain Sanitary District Whitehall Municipal Water Utility Lincoln Sanitary District No. 1 Withee Municipal Water Utility Owen Municipal Water Utility Source: PSC Annual Reports, 2012 4
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