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Regulatory Update: HVAC Replacement Project at Water Treatment Plant in Madison, WI

Strategic Insights

— 1 min read

The Public Service Commission of Wisconsin has received an application from the City of Oak Creek to construct a Heating, Ventilation, and Air Conditioning (HVAC) replacement at the Water Treatment Plant (WTP), with the original estimated total cost of $838,872. After reviewing the bids and revising the schedule, the City submitted a new request for an authorization of $1,213,540, an increase of $374,668. The project will be awarded to the lowest bidder, and the Utility has confirmed that it can be completed without a rate increase.

Key Takeaways:

  • The City of Oak Creek submitted an application to the Public Service Commission (PSC) to construct an HVAC replacement at the WTP, with an estimated total cost of $838,872.
  • The PSC found the application complete on September 6, 2024, and issued a Final Decision approving construction authorization on October 24, 2024.
  • The project was rebid with a revised schedule, and five new bids were received, ranging from $877,950 to $1,018,200.
  • The engineering opinion of probable cost was revised from $629,454 in June 2024 to $906,190 in January 2025, reflecting increased equipment and labor costs.
  • The City is formally notifying the Commission of the increase in construction cost authorization, which is $374,668.
  • The project can still be completed using cash on hand, without a rate increase.
  • The new request for authorization is for $1,213,540.

Statistics:

  • Estimated total cost of the HVAC replacement project: $838,872 (initial), $1,213,540 (revised)
  • Increase in construction cost authorization: $374,668
  • Number of bids received in the initial bid process: 1
  • Date of the first bid process: November 22, 2024
  • Number of bids received in the revised bid process: 5
  • Date of the revised bid process: February 21, 2025
  • Engineering opinion of probable cost: $629,454 (initial), $906,190 (revised)

Sources:

  • Public Service Commission of Wisconsin, Re: Notification of Cost Change HVAC replacement project at the Water Treatment Plant Docket No. 4310-CW-110.
  • Brian Johnston, P.E., Utility Engineer, City of Oak Creek.

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