by: Mark Fritsch, General Manager
I have exciting news to share with you. An agreement between Owatonna Public Utilities (OPU) and Jaguar Communications will provide safer, more reliable power to you by eventually moving most of our electric cables in residential areas underground. This cost-effective project will also make fiber-optic communications services available throughout the city.
Jaguar Communications approached us with a proposal to install underground conduit as part of their efforts to install a fiber-optic system in Owatonna. Jointly installing conduit at the same time significantly reduces the costs for installation. We estimate that the reduced cost of having Jaguar install our conduit will save $780,000 over our own independent project to accomplish the same goal.
The resulting underground power lines will be more reliable and safer, saving us money in the long run. Underground utilities are storm-hardened meaning fewer outages, and less money spent on repairs. Squirrel caused outages, our number one cause, will be significantly reduced. Significant tree-trimming cost savings will start out at about $100,000 a year and increase to over $500,000 a year long term.
This agreement with Jaguar will help ensure the availability of fiber-optic phone, cable and internet services. It’s not a partnership agreement, but an agreement that reduces the cost of installing conduit for both of us.
The initial electrical conduit will be placed throughout the city in four one-year phases. Actual electric cable will be installed over a 20-year period of time. Plans are to begin work this fall in the north section of Owatonna.
There will be a minimal one-time rate increase, however, the cost savings that underground conduit provides will bring a long term return on this investment.
What you will see around town and in back yards are directional boring and trenching machines installing conduit jointly for Jaguar and OPU and individually for Jaguar in areas where we already have underground conduit.
I was asked when the poles will be removed. It will take several years for some of the poles to come down. While power lines on the poles will be removed, in many instances, telephone, cable or other communications wire would remain.
We anticipate some noise, disruptions and yard work with this effort. Please keep in mind the short and long term values this effort brings to you and this community.
