MADISON — State utility regulators Tuesday authorized construction of a $1.46 million well project for the village of Monticello to meet its growing demand for water.
The village currently operates two wells but elevated nitrate levels in the N. Main Street well, and a 42% increase in water sales since 2017, including a 7 % increase in residential demand, prompted it to seek another water source.
In July, Monticello’s water utility applied to the Public Service Commission for approval for a new well, a 750 gallon-per-minute pump, a 576-square-foot wellhouse, upgraded electronic controls, a generator, 75 feet of water main and 1,050 feet of sewer main.
The initial location for new well (Well #4) was to be on the northwest corner of the village near its water tower #2, according to the application. That property is currently used as farmland and remains privately owned as the village hasn’t acquired it yet, said Brian Grossen, public works supervisor.
Asked why the village hasn’t purchased a well site yet, Grossen deferred to Delta 3 Engineering, the project’s engineers, which didn’t return a call seeking comment by deadline.
The property’s cost would increase the overall project’s cost but the application didn’t specify the amount.
The village plans to finance the project through the state Safe Drinking Water Loan Program, which often has a principal forgiveness provision. Details of the loan’s terms weren’t available Tuesday.
The project could result in a 39% overall increase in water rates, according to a PSC staff estimate. However, any increase would depend on project’s cost, how much loan principle wouldn’t have to be repaid and the rate of return the utility wants to earn on its infrastructure investment.
Average residential households currently pay $33.75 monthly for 3,000 gallons of water. A 39 percent rate hike would add $13.16 to the monthly water bill bringing it to $46.91. However, the village hasn’t filed a rate case with the PSC which sets water rates in a several month process that includes a public hearing.
The PSC can take several months to process a rate request.
Well construction was to begin in June, according to the application, whether the delay in selecting a well site affects that schedule remains unknown at this time.
The village’s demand for water has steadily increased in recent years due mostly to increased consumption by the Wisconsin Cheese plant, according to PSC’s order approving the well’s construction.
The village expects water consumption to continue to rise with increased production by Wisconsin Cheese and another 600 residents added by 2040, a 49% increase, according to the PSC order.
During the coming years, the village anticipates that industrial customers will supplant residential as the largest water consuming class.
In approving the well’s construction, the PSC asked the village to consider implementing more water conservation measures and order it to submit a water loss audit and a plan to control system leaks within six months.
The pump for Well #4 is sized to meet the village’s average daily water demand in the event that Well #3 becomes temporarily inoperable. The plan is to have each of the two wells provide half of the village’s water needs.
The village wants to reduce reliance on Well #1 which has elevated nitrate levels. Those levels have remained below the Maximum Contamination Level set by the Environmental Protection Agency.