Transfer control of the transmission utility's transmission facilities to an independent system operator that has received the approval of the federal agency to operate in a region.
If the federal agency has not approved an independent system operator specified in subd. 1.
, transfer control over the transmission utility's transmission facilities to an independent system operator that is intended to operate in a region.
If the transmission utility does not, or is not able to, to the satisfaction of the commission, transfer its transmission facilities to an independent system operator specified in subd. 2.
, divest the transmission utility's interest in its transmission facilities to an independent transmission owner.
The commission may waive the requirement to issue an order against a transmission utility under par. (a)
if each of the following is satisfied:
The transmission utility has filed an application with the applicable federal agency for approval to transfer control of its transmission facilities to an independent system operator or to divest its interest in its transmission facilities to an independent transmission owner.
The commission finds that the waiver is reasonably expected to result in a more expeditious transfer of control to an independent system operator or divestment of interest to an independent transmission owner than would result under an order issued under par. (a)
. In making a finding under this subdivision, the commission shall consider the need for a reasonably prompt transition period for the transfer of control or divestment of interest that ensures, to the maximum extent practicable, the continued reliability of the electric transmission system in this state.
By June 30, 2000, the commission shall, except as provided in par. (bm)
, order each transmission utility in this state that is a public utility to identify and separately account for the cost of retail transmission service and to take all retail transmission service from an independent system operator or independent transmission owner.
The commission may issue an order under par. (b)
after June 30, 2000, if the commission determines that a later date is necessary due to circumstances beyond the control of a transmission utility, including regulatory delays at the commission or applicable federal agency.
The commission has jurisdiction to do all things necessary and convenient to enforce the requirements of this section.
(3) Independent system operator and independent transmission owner duties. 196.485(3)(a)(a)
If an independent system operator that has control over transmission facilities in this state determines that there is a need for additional transmission facilities in this state, the independent system operator shall order any transmission utility that has transferred control over transmission facilities to the independent system operator to, subject to the requirements of ss. 196.49
and 196.491 (3)
, expand the portion of the electric transmission system that is in this state and under the control of the independent system operator or construct additional transmission facilities in that portion of the transmission system. An independent system operator may issue an order under this paragraph only if a transmission utility that is subject to the order is reasonably compensated for the costs incurred in complying with the order.
If an independent transmission owner determines that there is a need for additional transmission facilities in a portion of the electric transmission system of this state that consists of transmission facilities the interest in which has been divested to the independent transmission owner by a transmission utility, the independent transmission owner shall, subject to the requirements of ss. 196.49
and 196.491 (3)
, expand that portion of the electric transmission system or construct additional transmission facilities in that portion.
If each of the transmission utilities in the transmission area that are public utilities have not transferred control over their transmission facilities to the same independent system operator, the independent system operator that controls transmission facilities in the transmission area shall ensure that, by itself or pursuant to a long-term agreement with another independent system operator, the transmission facilities in the transmission area are planned, constructed, operated, maintained and controlled as a single transmission system.
An independent transmission owner or an independent system operator shall operate transmission facilities over which it has control in a manner that does each of the following:
To the maximum extent practicable, eliminates advantages in electric generation, wholesale and retail markets that are otherwise related to ownership, control or operation of transmission facilities over which it has control.
Satisfies the reasonable needs of transmission users in this state for reliable, low-cost and competitively priced electric service.
A transmission utility may not transfer control over, or divest its interest in, its transmission facilities to an independent system operator or independent transmission owner unless, to the satisfaction of the commission, each of the following requirements is satisfied:
The independent system operator or independent transmission owner is the sole provider of all transmission service to all users of its transmission system in this state, including the provision of retail transmission service to users that are public utilities.
The independent system operator or independent transmission owner has authority over transmission facilities that is sufficient for the independent system operator or independent transmission owner to ensure the reliability of its transmission system.
The independent system operator or independent transmission owner has sufficient authority to carry out the duties specified in sub. (3)
A transmission utility that transfers control over its transmission facilities to an independent system operator shall, subject to the approval of the applicable federal agency, provide reasonable and cost-effective construction, operation and maintenance services to the independent system operator that are required for operation of the transmission facilities.
History: 1997 a. 204
Authorization from commission before transacting business; extensions and improvements to be approved; enforcement of orders; natural gas. 196.49(1)(ag)(ag)
In this subsection, "public utility" does not include a telecommunications utility.
No public utility not legally engaged in performing a utility service on August 1, 1931, in any municipality may commence the construction of any public utility plant, extension or facility, or render service in such municipality directly, or indirectly by serving any other public utility or agency engaged in public utility service or otherwise, unless the public utility has obtained a certificate from the commission authorizing it to transact public utility business.
This subsection applies only to a public utility which was not legally engaged in performing a public utility service on August 1, 1931, in a municipality and which proposes to commence construction or render service in the municipality. If there is a public utility engaged in similar service in operation under an indeterminate permit in the municipality, ss. 196.495
No public utility may begin the construction, installation or operation of any new plant, equipment, property or facility, nor the construction or installation of any extension, improvement or addition to its existing plant, equipment, property, apparatus or facilities unless the public utility has complied with any applicable rule or order of the commission and with s. 281.35
, if applicable. If a cooperative association has been incorporated under ch. 185
for the production, transmission, delivery or furnishing of light or power and has filed with the commission a map of the territory to be served by the association and a statement showing that a majority of the prospective consumers in the area are included in the project, no public utility may begin any such construction, installation or operation within the territory until after the expiration of 6 months from the date of filing the map and notice. If the cooperative association has entered into a loan agreement with any federal agency for the financing of its proposed system and has given written notice of the agreement to the commission, no public utility may begin any construction, installation or operation within the territory until 12 months after the date of the loan agreement.
In this subsection, "project" means construction of any new plant, equipment, property or facility, or extension, improvement or addition to its existing plant, equipment, property, apparatus or facilities. The commission may require by rule or special order that a public utility submit, periodically or at such times as the commission specifies and in such detail as the commission requires, plans, specifications and estimated costs of any proposed project which the commission finds will materially affect the public interest.
Except as provided in par. (d)
, the commission may require by rule or special order under par. (a)
that no project may proceed until the commission has certified that public convenience and necessity require the project. The commission may refuse to certify a project if it appears that the completion of the project will do any of the following:
Substantially impair the efficiency of the service of the public utility.
Provide facilities unreasonably in excess of the probable future requirements.
When placed in operation, add to the cost of service without proportionately increasing the value or available quantity of service unless the public utility waives consideration by the commission, in the fixation of rates, of such consequent increase of cost of service.
The commission may issue a certificate for the project or for any part of the project which complies with the requirements of this section, or the commission may attach to the issuance of its certificate such terms and conditions as will ensure that the project meets the requirements of this section. The issuance of a certificate under this section shall not be a condition precedent to the exercise of eminent domain under ch. 32
A telecommunications utility is not required to obtain commission certification before beginning a construction project.
No public utility furnishing gas to the public in this state may construct, install or place in operation any new plant, equipment, property or facility, or construct or install any extension, improvement, addition or alteration to its existing plant, equipment, property or facilities for the purpose of connecting its properties and system to a source of supply of gaseous fuel for sale to the public which is different from that which has been sold previously, or for the purpose of adapting its facilities to use the different kind of gaseous fuel unless the commission certifies that the general public interest and public convenience and necessity require the connection to or use of the different fuel. No public utility may substitute natural gas or a mixture of natural and manufactured gas in lieu of manufactured gas for distribution and sale to the public unless it has obtained from the commission a certificate that the general public interest and public convenience and necessity require the substitution.
Proceedings for a certificate under par. (a)
shall be commenced by petition to the commission in a form prescribed by the commission, furnishing such information as the commission by rule or order prescribes. The commission shall prescribe the form of notice, to whom the notice shall be given, and how notice shall be given.
A petition under par. (b)
may include one or more municipalities, may be made by one or more public utilities as a joint petition, by any other interested person or by a public utility and any other interested person. The commission may direct the consolidation, separation or consideration of separate petitions as it deems necessary or expedient to a prompt hearing and disposition of the issue.
Upon the filing of a petition under par. (b)
, notice of hearing on the petition shall be given by the person filing the petition by publication of a class 2 notice, under ch. 985
, or by mailing or personal service, as the commission directs by the order under par. (b)
. Notice under this paragraph shall be given at least 2 weeks prior to hearing on the petition. Proof of notice shall be filed as directed by the commission.
The commission, with or without an order, prior to or during any hearing under this subsection, may frame and prescribe special issues and limit the issues or the nature and extent of proof so as to avoid unnecessary duplication. The commission, with or without an order, may proceed with the hearing as to part of a petition under par. (b)
as it may find desirable to a full but speedy hearing upon the petition.
The commission may accept as presumptive evidence in a commission proceeding the facts found in findings and orders of the federal energy regulatory commission or any federal agency having jurisdiction as to the availability of adequate supplies of natural gas, the adequacy or sufficiency of equipment and facilities to be employed in the delivery or storage of natural gas for any public utility, and any similar findings or determinations affecting the seller or person furnishing natural gas to any public utility and material to the ultimate determination of the issues in the proceeding. The commission may accept and take judicial notice of its own files and records, including all proceedings and the evidence therein which it finds to be material and relevant. The commission shall give notice of the taking of judicial notice under this paragraph prior to the conclusion of final hearings upon any proceeding so as to give interested parties the right to object to acceptance of the evidence or to contradict the evidence by other competent evidence.
A certificate granted under par. (a)
shall be authorized by an order following a hearing. The order shall contain any condition or limitation which the commission deems necessary or practicable, including, but not limited to, exceptions or regulations as to specific communities or public utilities, provision for protection of employes under existing labor contracts, as well as other employes, so as to avoid unemployment, regulations for accounting for expenses for change-over to the use of natural gas where necessary and to the extent necessary, provision for amortization of any expenditure or other items, and any other regulation, condition and limitation which the commission considers necessary in the public interest.
The commission by order may extend a certificate under par. (a)
to more than one public utility or municipality. The commission may prescribe different conditions and regulations for each public utility or municipality if the commission deems the different conditions and regulations necessary to carry out the purposes of this section.
In making a determination under this section, the commission shall consider all appropriate factors affecting the public interest, including, but not limited to, when the substitution of natural or a mixture of natural and manufactured gas is involved, the likelihood of substantial rate reduction from the substitution and the effect of the substitution upon employment, existing business and industries, railroads and other transportation agencies and facilities, upon conveniences, economies and savings to consumers, upon existing gas utilities and their ability to continue to serve the public and upon the state, any of its political subdivisions or any citizen or resident of the state.
If the commission finds that any public utility has taken or is about to take an action which violates or disregards a rule or special order under this section, the commission, in its own name either before or after investigation or public hearing and either before or after issuing any additional orders or directions it deems proper, may bring an action in the circuit court of Dane county to enjoin the action. If necessary to preserve the existing state of affairs, the court may issue a temporary injunction pending a hearing upon the merits. An appeal from an order or judgment of the circuit court may be taken to the court of appeals.
Sup. Ct. Order, 67 W (2d) 585, 775 (1975); 1977 c. 187
; 1979 c. 110
s. 60 (9)
; 1983 a. 53
; 1985 a. 60
; 1993 a. 496
; 1995 a. 227
There is no hearing requirement as to the issuance of a certificate authorizing service. Adams-Marquette E. Coop. v. P.S.C. 51 W (2d) 718, 188 NW (2d) 515.
Term "public" in (3) (b) includes all electric consumers in state, not simply ratepayers of utility seeking authorization. Wis. Power & Light v. Pub. Ser. Comm. 148 W (2d) 881, 437 NW (2d) 888 (Ct. App. 1989).
Strategic energy assessment; electric generating facilities and transmission lines. 196.491(1)(b)
"Commencement of construction" means site clearing, excavation, placement of facilities or any other substantial action adversely affecting the natural environment of the site, but does not mean borings necessary to determine foundation conditions or other preconstruction monitoring to establish background information related to site or environmental suitability.
"Cooperative association" means a cooperative association organized under ch. 185
for the purpose of generating, distributing or furnishing electric energy at retail or wholesale to its members only.
"Department" means the department of natural resources.
"Electric utility" means any public utility, as defined in s. 196.01
, which is involved in the generation, distribution and sale of electric energy, and any corporation, company, individual or association, and any cooperative association, which owns or operates, or plans within the next 3 years to construct, own or operate, facilities in the state.
"Facility" means a large electric generating facility or a high-voltage transmission line.
Except as provided in subs. (2) (b) 8.
and (3) (d) 3m.
, "high-voltage transmission line" means a conductor of electric energy exceeding one mile in length designed for operation at a nominal voltage of 100 kilovolts or more, together with associated facilities, and does not include transmission line relocations that the commission determines are necessary to facilitate highway or airport projects.
"Large electric generating facility" means electric generating equipment and associated facilities designed for nominal operation at a capacity of 100 megawatts or more.
"Wholesale merchant plant" means electric generating equipment and associated facilities located in this state that do not provide service to any retail customer and that are owned and operated by any of the following:
Subject to the approval of the commission under sub. (3m) (a)
, an affiliated interest of a public utility.
The commission shall prepare a biennial strategic energy assessment that evaluates the adequacy and reliability of the state's current and future electrical supply. The strategic energy assessment shall do all of the following:
Identify and describe large electric generating facilities on which an electric utility plans to commence construction within 3 years.
Assess the adequacy and reliability of purchased generation capacity and energy to serve the needs of the public.
Identify and describe high-voltage transmission lines on which an electric utility plans to commence construction within 3 years.
Identify and describe any plans for assuring that there is an adequate ability to transfer electric power into the state and the transmission area, as defined in s. 196.485 (1) (g)
, in a reliable manner.
Identify and describe the projected demand for electric energy and the basis for determining the projected demand.
Identify and describe activities to discourage inefficient and excessive power use.
Identify and describe existing and planned generating facilities that use renewable sources of energy.
Consider the public interest in economic development, public health and safety, protection of the environment and diversification of sources of energy supplies.
Assess the extent to which the regional bulk-power market is contributing to the adequacy and reliability of the state's electrical supply.
Assess the extent to which effective competition is contributing to a reliable, low-cost and environmentally sound source of electricity for the public.
Assess whether sufficient electric capacity and energy will be available to the public at a reasonable price.
The commission shall promulgate rules that establish procedures and requirements for reporting information that is necessary for the commission to prepare strategic energy assessments under par. (a)
On or before July 1, 2000, and on or before July 1 of each even-numbered year thereafter, the commission shall issue a draft of the biennial strategic energy assessment that it prepares under par. (a)
to each of the following:
The director or chairperson of each regional planning commission constituted under s. 66.945
which has jurisdiction over any area where a facility is proposed to be located or which requests a copy of such plan.
The lower Wisconsin state riverway board if the draft includes an assessment of the construction, modification or relocation of a high-voltage transmission line, as defined in s. 30.40 (3r)
, that is located in the lower Wisconsin riverway as defined in s. 30.40 (15)
Each person that is required to report information to the commission under the rules promulgated under par. (ag)
The clerk of each city, village, town and county that, as determined by the commission, is affected by the assessment.