Stanley, Wisconsin will soon have new water rates, pending a public hearing Tuesday, Jan. 20 at 2:00 p.m. with the Public Service Commission (PSC), held via Zoom, with web, live, and mail comment accepted. The estimated rate increase to take place in two steps has prompted widespread discontent among city residents, including the hearing being scheduling at 2 p.m. on a workday.
The hearing, scheduled for Tuesday, Jan. 20 will take feedback from city residents on a proposed water rate increase of 103.12 percent. The proposed increase would take place in two steps, with rate payers looking at an overall rate increase of 115.16 percent after a public fire protection charge is added following Step II.
The Step 1 water rate increase as proposed would raise $878,224 taking place following issuance of the final decision from the PSC, followed by a Step II increase of $1,150,883 to take place after notification by the city to the PSC of completed improvements made to the central water treatment plant, along with well 3 work. All told the proposed increase represents an additional $2,2029,107 in water utility revenues to the city, deemed necessary due to a 71.53 percent increase in gross plant investment and 75.43 percent increase in operating expenses since the last water rate increase.
A full rationale as previously given by the city for the proposed water rate increase are the following:
• Operating Expenses
• Ozone and SCADA upgrade
• Central Water Treatment Plant update
• Well 3 Update
• City had not completed any rate cases (Simplified or Conventional) since 2017
A public hearing notice with full details appears on page 9 of this week’s newspaper.
Back at council Monday Jan. 5, meanwhile, members had questions of their own, specifically regarding the question of initially submitted rates versus proposed rates as received from the PSC, or Public Service Commission.
Alderperson Jason Meyer led things out with a question for City Administrator/Clerk-Treasurer Nicole Pilgrim.
“I have a question about item G,” he said after “Is it possible to get a copy of the proposal we submitted to the PSC? And is that different from the one that was given to us in October that was prepared by Ruekert & Mielke?”
“It’s not any different,” Pilgrim said. “What they did was submitted to the PSC and then the PSC did their own modifications.”
“Ok,” Meyer said. “Is there a way that we can get the PSC document other than going to their website?”
“Jon sent them out, didn’t he?” Pilgrim asked. “Not in this meeting, but in previous meetings I thought I included them.”
“That’s very possible,” Meyer said. “I’ll see what I can find through the previous meetings.”
“If you can’t find it let us know and we can send it out again,” Deputy Clerk Maggie Keeku said.
Alderperson Ben Wald followed Meyer.
“Is there a reason why ACE Ethanol is lower than all of these other manufacturing concerns in town? he asked.
“We asked for them to be the same as the others,” Pilgrim said. “They (the PSC) told us they feel that based on their usage and what they use it for that they (ACE) deserve to be a lower rate.”
“That’s not right,” Alderperson Laurie Foster said.
“That price is being absorbed by other businesses,” Wald said.
“We don’t make those decisions,” Pilgrim said.
“That’s not fair,” Foster chimed in again.
“To be clear we didn’t ask for that,” Wald said.
“No we did not,” Pilgrim said. “We asked for it to be the same as the other industrial park businesses.”
“Ok,” Wald said.
Ace Ethanol President and General Manager Neal Kemmet commented on the question of water rates and Ace after the council meeting.
“I don’t like the proposed water rate increases either—just like most residents—but it’s important to recognize that many of these costs are for improvements that Ace Ethanol doesn’t need, while residents do,” he said. “In a recent article in the Stanley Republican, it was noted that ‘the city requested that Ace no longer have its own rate and was told no.’ That statement underscores the importance of fair and lawful rate design. To illustrate how absurd some ideas can be, imagine if we decided to pass all water costs to Stanley Correctional Institution because the State of Wisconsin pays the water bill. Then, everyone in Stanley could enjoy free water while the State covers the cost—and it would only increase state household expenses by less than $2 per year. Clearly, that’s not how responsible rate-setting works.
“As the operator of two ethanol plants—Ace Ethanol in Stanley and Fox River Valley Ethanol in Oshkosh—I see firsthand how water costs impact local businesses and, ultimately, the community. Ace Ethanol’s water and sewer budget is approximately $1.2 million annually, while Fox River Valley’s budget is less than $200,000. The difference is partly because Fox River Valley operates on a private well, while Ace relies on Stanley’s public water system. Importantly, Ace does not require potable water for its operations, yet because we are part of a common municipal system, we pay for treated water we don’t need. This makes the cost disparity even more pronounced and raises questions about fairness in rate design.
“Moreover, Ace Ethanol’s water usage profile and infrastructure requirements differ significantly from other customer classes. Our fire-flow requirement and peak demand ratios are unique. The Public Service Commission’s deliberations in Case 5670-WR-103 recognized that costs should be assigned to those who cause them. A dedicated rate for Ace is not only fair but consistent with law and cost-of-service principles.
“Fair rate design supports economic health and community contribution. Misallocating costs through “class absorption” invites contested cases and undermines transparency. A separate rate for Ace ensures recovery is tied to real drivers—peak demand, fire-flow capacity, and RO waste treatment—without resorting to costly individual metering.”
The council next meets in regular session Monday, Jan. 19 at 7 p.m. in city hall. The new water rates as proposed await a Jan. 20 PSC public hearing at 2 p.m. via Zoom for final approval, with comments accepted by web, live, or mail. Those unable to attend the meeting or make web comment can send water rate comments via mail to:

Attn: Docket 5670-WR-104 Comments
Public Service Commission
P.O. Box 7854
Madison, WI 53707-7854

Comments must be received by Jan. 22.