The Madison Water Utility said the departure of Oscar Mayer from the city will mean a nearly $1 million loss.
Water Utility spokeswoman Amy Barrilleaux said once the plant is fully closed, Madison Water Utility will see an estimated $1 million annual drop in revenues.
Kraft-Heinz announced last November it would be closing the plant after 100 years. The plant is expected to fully close in six months.
Barrilleaux said water use at Oscar Mayer’s Madison production facility has started to drop significantly ahead of its planned closure in March. The plant's water use through August is down 24 percent, or 68.7 million gallons, from the same time period in 2014, the last year the plant was at full production.
The decline in water use at Oscar Mayer means a loss in revenue at the water utility so far in 2016 of about $172,000, Barrilleaux said. When it was in full production, Oscar Mayer typically used 30 to 40 million gallons a month. In August, it used about 23 million gallons.
"Oscar Mayer has long been the top commercial and industrial water user in Madison by far, and it remains that way today," Barrilleaux said in a news release. She said two water main improvements over the last 14 years were done in part to meet Oscar Mayer's water demand. A larger water main was installed on Pennsylvania Street in 2002 at a cost of $750,000 and a new main was put in on Anderson Street in 2011 at a cost of $850,000.
Once the plant is fully closed, Madison Water Utility will see an estimated $1 million annual drop in revenues, the utility said.
MWU will see some savings in terms of costs to treat and pump the water, which will amount to about $70,000 a year, Barrilleaux said. Counting those savings, the total lost revenue will be just more than $980,000. Not counting those savings, the lost revenue is about $1.05 million.