Barrett: "We disagree" with Commission's ruling on streetcar

MILWAUKEE (WITI) -- The Public Service Commission of Wisconsin has ruled the city of Milwaukee cannot make utility companies pay to move underground lines for the proposed downtown streetcar system.

The ruling, if it stands, would force the city to approve more money to pay for the project.

Milwaukee's Department of Public Works commissioner told the Milwaukee Business Journal he estimates the city will need to find $20 million more to move the private underground utilities if this project is to move forward -- though that estimate is not definite.

The Milwaukee Business Journal says much of the Public Service Commission's decision is based on an item the Wisconsin Legislature included in the budget it approved last year.

That item prohibits Milwaukee from forcing private utility companies and their ratepayers to pay utility relocation costs for the streetcar.

The city is likely to appeal the PSC decision in court.

Milwaukee Mayor Tom Barrett issued the following statement Wednesday:

“We’re not surprised that the Public Service Commission continues to politicize a local public works improvement project. The PSC and State Legislature believe that private investor-owned utilities, which use publicly financed roadways for free, should be given special treatment when it comes to public improvement projects in Milwaukee.

We disagree.

Despite the PSC and Legislative actions to curtail local control of local streets and roadways, we’ve made significant progress in reducing the project’s associated utility costs. Before entering final engineering, the utilities’ original claim of $55 to $70 million in costs has been reduced to approximately $20 million.

In addition, last week the City received a $3.18 million streetcar grant, approved by Federal transportation officials, the regional planning body and officials from the Wisconsin Departments of Transportation and Natural Resources.

In order to drive the costs down further, we expect even more cooperation from the utility companies than we have had to date.”

CLICK HERE for more on this story via the Milwaukee Business Journal.