ROCHELLE — The Rochelle City Council has approved a utility service agreement with CHS Inc. to support the company’s expansion at its ethanol production facility at 1900 Steward Road. The agreement allows the city’s utility department to manage the installation of upgraded electric service, with the work awarded to Utility Dynamics Corp. under a $1.31 million contract.
Blake Tolliver said this would be a new service line from the Ritchie Road substation to their property.
“This is an agreement that we’re putting in place with CHS to work on that upgrade. Ultimately, the line will be owned by us, but they’re paying to do the installation because this is considered a service upgrade to them, so they have to pay for the installation,” he said
The project, which includes a new electric line, concrete-encased duct bank and additional conduit, received four bids on April 24, with Utility Dynamics submitting the lowest. CHS will cover $1.11 million of the cost, while the city will fund the remaining $200,000 through electric utility funds.