Superior Wants to Take Over Private Utility. Possible Price? $300 Million
Mayor Jim Paine called the projected price 'inflated' to deter city takeover.
(Left to right) Superior Mayor Jim Paine, Gov. Tony Evers and Superior Water Light & Power President Rob Sandstrom on July 8, 2025. The city and utility are partnering to replace lead service lines, but they’re at odds over the city’s proposed takeover. (Danielle Kaeding/WPR)
A new utility-backed study finds it may cost the city of Superior around $300 million to move ahead with a contested takeover of electric, water and gas utilities run by a privately-owned company.
The study commissioned by Superior Water, Light & Power, or SWL&P, estimated it would run between $274 million and $306 million to buy its assets, including startup and other costs.
“Based on what the study shows, we want to make sure we’re protecting our customers and really our community from spending a lot of money to get a similar service that Superior Water, Light & Power already provides,” SWL&P President Rob Sandstrom said.
Superior Water Light & Power has repeatedly rejected the city’s proposed takeover of its assets. Superior Mayor Jim Paine argued the study’s estimates were “significantly inflated” and represented far more than the value of its utilities.
“I think it’s really just a propaganda move to do what the utility has always done, which is inflate their cost to try and make the most profit possible, or in this case, to try and scare us off from buying the water utility,” Paine said.
The study estimated the value of the utility’s assets based on data provided by the company as of the end of 2024, as well as its financial forecasts. The study projected the cost to purchase assets would range between $187 million and $219 million at the end of 2030 since legal proceedings of any acquisition may take years.
The findings also estimated that startup and transaction costs would be around $84 million, which include legal fees, staffing costs and capital investments. The cost of separating systems shared with Minnesota Power, such as radio equipment, is estimated at around $3.1 million. Estimates exclude other costs that include electric transmission assets, land and easements.
Sandstrom said the acquisition would involve more than just the purchase of the assets, highlighting the utility’s upcoming lead line replacement. He said Superior Water, Light & Power must replace between 3,000 and 4,000 utility-owned lead lines at an average cost of $10,000 per line, estimating the total cost at $40 million.
The Environmental Protection Agency has estimated the average lead line replacement costs $4,700.
A service center for Superior Water Light & Power in Superior. Danielle Kaeding/WPR
In 2024, the city began exploring a potential takeover of the state’s only private water utility after Superior Water, Light & Power proposed a double-digit increase in water rates, which are among the highest in the state. If the city only purchased the water utility, Sandstrom said the city would pay around 65 percent of $290 million, which is in the middle range of the total projected acquisition costs
“It would be irresponsible to burden current and future generations with this level of debt,” wrote Bill Fennessey, the coalition’s spokesperson, in a statement.
Superior resident Tammy Chinski said she lives on disability benefits, noting it’s difficult for her to absorb rate increases on a fixed income. She supports the city taking over the utility’s assets because she feels people don’t have any say over price hikes in their utility bills.
“If they want to stay in business, they should lower the rates if they don’t want somebody else to come in and take over,” Chinski said.
State law allows municipalities to acquire a utility, but the sale would require approval from utility regulators. Prior to seeking regulatory approval, the city must first put a referendum before voters.
Paine said the public will decide whether the utility is charging ratepayers fairly, adding he expects results from the Raftelis study in the coming months. While utility officials say they would prefer to work with the city, Sandstrom said the Public Service Commission would decide the ultimate value of any takeover if or when it moves forward.
Superior wants to take over a private utility’s assets. One study puts the price around $300M was originally published by Wisconsin Public Radio.
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