As a result of the construction of the Columbia Generating Station (Columbia I) near Portage, Wisconsin, the three sponsoring utility companies began making compensation payments in 1971 to the host township, Pacific Township, Columbia County. As specified by Wisconsin statutes, these payments are designed to compensate the township for property tax losses caused by the plant, for possible increased costs for social services, and for possible increased environmental degradation. Despite recent amendments to the statutes, these payments have created a 'tax island' in Pacific Township; that is, the township no longer needs to levy any local property tax. Property records and land-use maps indicate that by 1975 residential development had accelerated in the township, although no significant increase in commercial or industrial development was evident. The sharp upturn in the rate of residential growth contrasted with a continuous and moderate rate of growth in the adjacent township of Fort Winnebago. The change in Pacific Township was accompanied by decreases in the average size of individual property holdings and in the average size of individual property sales. No significant change was found in the proportion of absentee or corporate owners in the township.

"Institute for Environmental Studies, University of Wisconsin-Madison." "January 1980." Includes bibliographical references (pages 56-59). Grant no. "Study was conducted in cooperation with Wisconsin Power and Light Company, Madison Gas and Electric Company, Wisconsin Public Service Corporation, Wisconsin Public Service Commission, and Wisconsin Department of Natural Resources."