The question of whether K&S Wire Products will be locating in Hudson after all appears to still be up in the air, after the discovery that the electrical service to the plant is inadequate to run the heavy welding equipment the plant will require.

Consumer's Energy District Manager Barb Mitsell told the Tuesday evening meeting of the Hudson City Council that while the single phase service available at the plant was adequate for a motor-heavy industry such as M&S Manufacturing was, it would be inadequate to handle the amperage loads and the rapidly changing power requirements of the welding machines. "We want to make sure we can meet the load and demand requirements of our customers, but we have to make sure we don't impact the activities of our other customers," Mitsell said.

Mitsell explained that the heavy loads could cause brownouts and other inadequate service throughout the town if the problem wasn't adequately addressed.

Consumer's Energy engineer Larry Eardgood added, "When we evaluated the equipment the customer was bringing in, it was clear that there would be impacts on other customers." He went on to explain that servicing K&S Wire with single phase service would require a new substation that would take perhaps six months to design and construction at a cost of well over $100,000, which would have to be paid by the customers. However, a conversion to a three-phase service would be quicker and cheaper.

City Manager Frank Goodroe added that he had learned Tuesday afternoon that K&S Wire was determining whether the used equipment that was being brought in could be converted to three-phase electrical service.

He also noted that K&S Wire Products had been looking at other plants in the general vicinity, and most faced the same kinds of electrical capacity problems.

Eardgood commented, "We are still working with the customer. I don't think they understood the impact of a welding type operation on the electrical service."

Ms. Mitsell added, "We want to keep this customer in Hudson, and we are doing what we can to solve the problem."

As a show of support to K&S Wire Products, the Hudson City Council voted to extend a 12-year tax abatement to the company for some of the equipment they are considering bringing in. However, Goodroe said that no lease has yet been signed with the company, but if the electrical issues can be ironed out it could be operating within three weeks.

K&S Wire Products proposes to build shopping carts in the former M&S Plant 14 building, and possibly other buildings in the complex in the future, if this problem can be worked out.

In February, the Michigan Economic Growth Authority approved a state tax credit of $917,028 to help bring the company to Hudson. The project is expected to create 157 new jobs directly out of the area out of a total of 356 new jobs through suppliers and sales.