KAUKAUNA UTILITIES PURCHASES NEWPAGE KIMBERLY HYDRO-ELECTRIC FACILITY

On March 31, 2010 Kaukauna Utilities completed the transaction with NewPage Wisconsin System Inc for the purchase of 2.0 mw Kimberly Hydroelectric Facility at a cost of $6.1 million. With this purchase Kaukauna Utilities owns and operates all eight hydroelectric generating facilities on the Lower Fox River between the College Avenue Bridge in Appleton and the Hwy 92/CTH D Bridge in Wrightstown. These eight hydro facilities include 21 generators with total in-service capacity of 25,000 Kw and produce approximately 150,000,000 kwh annually.

Purchase of the Plant was completed 62 days ahead of schedule at a savings of $400,000. With the issuance of Build American Bonds to finance the purchase, the Utility will also save $422,425 in net total debt service.

Finally, adding the Kimberly Hydro Plant to existing operations will allow Kaukauna Utilities System Operations to realize a 10% increase in efficiency at existing down stream hydro plants. The Kimberly Hydro Plant will be operated remotely from Kaukauna Utilities System Operations Center.