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August 17, 2005

Facility Project Update

Kaukauna Utilities is currently involved in a three-year building expansion/remodeling project. This upgrade of the KU facilities will accommodate current and future growth of the utility over the next 20 years.

To date, KU has received approval from the Public Service Commission of Wisconsin to proceed with the project, as they have deemed it justifiable. KU also solicited proposals and selected Berners-Schober Associates of Green Bay as the project Architect/Engineer.

Phase I of the project calls for the construction of a new warehouse and mechanic’s garage located on our property north of the power canal off Maple Street. Building construction is scheduled to start in the fall of 2005, with building occupancy expected in May of 2006. KU is currently reviewing and finalizing the building design and layout. This first part of the project is on schedule.

Phase II work will consist of a building addition to the existing facility located at 777 Island Street. This Phase will include a 60’ x 80’ addition to the north, and a 20’ x 40’ addition to the south. This expansion will allow for more efficient operations, growth and customer service. Work on Phase II will start in the summer of 2006 and be completed by the end of the year.

Phase III of the project involves the internal remodeling and upgrades to the existing building. The current KU facility is somewhat deficient with regard to current building codes and requirements including energy efficient mechanical systems. Phase III work will start in January 2007 and be completed by June 2007.