Milwaukee seeks to intervene on Foxconn power lines

The Milwaukee Common Council on Tuesday moved to intervene in a proposed $140 million project to run electrical power to the huge manufacturing complex Foxconn Technology Group plans to build in Racine County.

The resolution, which was approved on a 12-3 vote, directs the city attorney to intervene on behalf of Milwaukee as the project goes before the Wisconsin Public Service Commission.

The massive plant is expected to draw an enormous amount of power — six times more than the next-largest factory in Wisconsin, according to American Transmission Co.

To provide that much electricity — enough to serve 170,000 households — the utility wants to run high-voltage power lines to a new substation east of the Foxconn campus in the far southwestern corner of Mount Pleasant.

Ald. Robert Bauman, the resolution’s lead sponsor, argued that the city and its residents shouldn’t face rate increases to help pay for the project, adding that Wisconsin taxpayers are already heavily subsidizing the project.

“The City of Milwaukee wants to protect its own interests as a ratepayer, as well as the interests of our citizens, who are ratepayers,” he said. “We think this subsidy game has perhaps gone on long enough.”

Bauman added that he wants to make sure steps will be taken so Milwaukee residents can work at the facility.

“We need to see some evidence that the state and Foxconn, independently or cooperatively, are going to provide some public transit infrastructure to connect Milwaukee residents with this apparently very large manufacturing facility,” Bauman said after Tuesday’s vote. “We want to see our residents working there.”

The council’s resolution says the application “should be denied or modified to prevent end-user utility ratepayers from absorbing” the costs of the project.

ATC has said the costs would be spread among some 5 million customers over 40 years.

Construction is expected to begin late this year on the substation and in early 2019 on the transmission lines if the PSC approves the project, according to ATC. Power would start flowing by late 2019 or early 2020.

Alds. Mark Borkowski, Bob Donovan and Tony Zielinski voted no on the measure.

“This is akin to, in my mind, slapping Foxconn in the face, and We Energies, and then inviting them to the table,” Donovan said. “Now certainly we want to do everything we can to ensure that Milwaukeeans get as many jobs as possible — not only at Foxconn but at other places. But I just don’t think this is the right approach.”