Regulation of the Chippewa and Flambeau Improvement Company.
If enacted, SB255 would authorize the Chippewa and Flambeau Improvement Company to recover costs related to taxes, depreciation, and provide a reasonable return on capital investment. Additionally, the bill clarifies the conditions under which water power operators are assessed tolls, specifically stating that those operating for a specified minimum duration will incur charges for the entire toll period. This change is aimed at ensuring a more stable revenue stream for the company, thereby enhancing its ability to manage water resources effectively.
Senate Bill 255 aims to amend and modernize the regulatory framework governing the Chippewa and Flambeau Improvement Company, which is responsible for managing water flow and flood control in certain rivers. The bill proposes significant changes to the way tolls are levied on water power operators who benefit from the company's reservoir system. Notably, it allows these tolls to be used not only for operation and maintenance but also for the acquisition and improvement of the water management system. This represents a shift from previous regulations which prohibited such financial practices.
The amendment to existing regulations eliminates several restrictions, including those against using tolls for capital projects and limits on the funding of infrastructure improvements through negotiable bonds. This has raised concerns among stakeholders about the potential financial implications for water power operators. Critics argue that the increased financial burdens could lead to higher operational costs, which may ultimately be passed on to consumers. Supporters, however, assert that these changes are necessary for the sustainable management of water resources and will contribute to economic development in the region.