AB389,32,1515 3. By December 31, 2004, 1.2%.
AB389,32,1616 4. By December 31, 2006, 1.55%.
AB389,32,1717 5. By December 31, 2008, 1.9%.
AB389,32,1818 6. By December 31, 2010, 2.2%.
AB389,32,1919 (b) For purposes of determining compliance with par. (a):
AB389,32,2120 1. Total retail energy sales shall be calculated on the basis of an average of an
21electric provider's retail energy sales in this state during the prior 3 years.
AB389,33,222 2. The amount of electricity supplied by a renewable facility in which biomass
23and conventional fuels are fired together shall be equal to the product of the
24maximum amount of electricity that the facility is capable of generating and the ratio

1of the British thermal unit content of the biomass fuels to the British thermal unit
2content of both the biomass and conventional resource fuels.
AB389,33,53 3. Any excludable renewable energy that exceeds 0.6% of an electric provider's
4total retail energy sales shall be excluded from the electric provider's total renewable
5energy.
AB389,33,116 (c) No later than April 15 annually, an electric provider shall submit a report
7to the department that describes the electric provider's compliance with par. (a).
8Reports under this paragraph may include certifications from wholesale suppliers
9regarding the sources and amounts of energy supplied to an electric provider. The
10department may specify the documentation that is required to be included with
11reports submitted under this paragraph.
AB389,33,1612 (d) The commission shall allow an electric utility to recover from ratepayers the
13cost of providing total renewable energy to its retail customers or members in
14amounts that equal or exceed the percentages specified in par. (a). Subject to any
15approval of the commission that is necessary, an electric utility may recover costs
16under this paragraph by any of the following methods:
AB389,33,1817 1. Allocating the costs equally to all customers or members on a kilowatt-hour
18basis.
AB389,33,2019 2. Establishing alternative price structures, including price structures under
20which customers or members pay a premium for renewable energy.
AB389,33,2121 3. Any combination of the methods specified in subds. 1. and 2.
AB389,33,2222 (e) 1. This subsection does not apply to any of the following:
AB389,33,2423 a. An electric provider that provides more than 10% of its summer peak demand
24in this state from renewable facilities.
AB389,34,2
1b. An electric provider that provides more than 10% of its summer peak demand
2from renewable resources.
AB389,34,53 2. For purposes of calculating the percentages under subd. 1., an electric
4provider may include renewable facilities located in this or another state and
5renewable facilities located on its or another electric provider's system.
AB389,34,96 3. Notwithstanding subd. 1., this subsection applies to an electric provider
7unless the electric provider provides documentation to the commission that
8establishes, to the satisfaction of the commission, that the electric provider satisfies
9the requirements under subd. 1. a. or b.
AB389,34,18 10(3) Renewable resource credits. (a) An electric provider that provides total
11renewable energy to its retail electric customers or members in excess of the
12percentages specified in sub. (2) (a) 1. to 6. may, in the applicable year, sell to any
13other electric provider a renewable resource credit or a portion of a renewable
14resource credit at any negotiated price. Alternatively, an electric provider may use
15a renewable resource credit or portion of a renewable resource credit in a subsequent
16year to establish compliance with sub. (2) (a). The commission shall promulgate
17rules that establish requirements for calculating the amount of a renewable resource
18credit.
AB389,34,2019 (b) The commission may promulgate rules that establish requirements and
20procedures for a sale under par. (a).
AB389,34,23 21(4) Rules. The commission may promulgate rules that designate a resource,
22except for a conventional resource, as a renewable resource in addition to the
23resources specified in sub. (1) (g) 1. and 1m.
AB389,35,5 24(5) Penalty. Any person who violates sub. (2) or any wholesale supplier who
25provides an electric provider with a false or misleading certification regarding the

1sources or amounts of energy supplied to the electric provider shall forfeit not less
2than $5,000 nor more than $500,000. Forfeitures under this subsection shall be
3enforced by action on behalf of the state by the attorney general. A court imposing
4a forfeiture under this subsection shall consider all of the following in determining
5the amount of the forfeiture:
AB389,35,76 (a) The appropriateness of the forfeiture to the person's or wholesale supplier's
7volume of business.
AB389,35,88 (b) The gravity of the violation.
AB389,35,109 (c) Whether a violation of sub. (2) is due to circumstances beyond the violator's
10control.
AB389, s. 27 11Section 27. 196.485 (title) of the statutes is repealed and recreated to read:
AB389,35,12 12196.485 (title) Transmission system requirements.
AB389, s. 28 13Section 28. 196.485 (1) (am) of the statutes is created to read:
AB389,35,1614 196.485 (1) (am) "Contribute a transmission facility" means to divest a person's
15interest in the transmission facility and to transfer ownership of the transmission
16facility and associated deferred tax reserves to another person.
AB389, s. 29 17Section 29. 196.485 (1) (be) of the statutes is created to read:
AB389,35,2018 196.485 (1) (be) "Director" means, with respect to a transmission company
19organized as a corporation under ch. 180, a member of the board of directors of the
20transmission company.
AB389, s. 30 21Section 30. 196.485 (1) (bs) of the statutes is created to read:
AB389,35,2222 196.485 (1) (bs) "Electric utility" has the meaning given in s. 196.491 (1) (d).
AB389, s. 31 23Section 31. 196.485 (1) (dm) (intro.) of the statutes is amended to read:
AB389,35,2424 196.485 (1) (dm) (intro.) "Independent transmission owner" means:
AB389,35,25 251m. Means a person that satisfies each of the following:
AB389, s. 32
1Section 32. 196.485 (1) (dm) 1. of the statutes is renumbered 196.485 (1) (dm)
21m. a.
AB389, s. 33 3Section 33. 196.485 (1) (dm) 2. of the statutes is created to read:
AB389,36,44 196.485 (1) (dm) 2. Does not include the transmission company.
AB389, s. 34 5Section 34. 196.485 (1) (dm) 3. of the statutes is renumbered 196.485 (1) (dm)
61m. b. and amended to read:
AB389,36,87 196.485 (1) (dm) 1m. b. The person is not an affiliated interest of a person
8specified in subd. 1. 1m. a.
AB389, s. 35 9Section 35. 196.485 (1) (do) of the statutes is created to read:
AB389,36,1210 196.485 (1) (do) "Land right" means any right in real property, including fee
11simple ownership or a right-of-way or easement, that has been acquired for a
12transmission facility that is located or intended to be located on the real property.
AB389, s. 36 13Section 36. 196.485 (1) (dq) of the statutes is created to read:
AB389,36,1614 196.485 (1) (dq) "Manager" means, with respect to a transmission company
15organized as a limited liability company under ch. 183, a manager, as defined in s.
16183.0102 (13), of the transmission company.
AB389, s. 37 17Section 37. 196.485 (1) (dr) of the statutes is created to read:
AB389,36,2018 196.485 (1) (dr) "Merger enforcement policy" means the enforcement policy of
19the federal department of justice and the federal trade commission regarding
20horizontal acquisitions and mergers that are subject to 15 USC 1, 18 or 45.
AB389, s. 38 21Section 38. 196.485 (1) (ds) of the statutes is created to read:
AB389,36,2522 196.485 (1) (ds) "Midwest independent system operator" means the
23independent system operator the establishment of which the federal energy
24regulatory commission has conditionally authorized in an order issued on September
2516, 1998, or the successor to such independent system operator.
AB389, s. 39
1Section 39. 196.485 (1) (dt) of the statutes is created to read:
AB389,37,32 196.485 (1) (dt) "Nontransmission utility security holder" means a security
3holder that is not a transmission utility security holder.
AB389, s. 40 4Section 40. 196.485 (1) (dv) of the statutes is created to read:
AB389,37,105 196.485 (1) (dv) "Organizational start-up date" means, with respect to a
6transmission company that is organized as a limited liability company under ch. 183,
7the date on which the articles of organization become effective under s. 183.0111 or,
8with respect to a transmission company that is organized as a corporation under ch.
9180, the date on which the articles of incorporation become effective under s.
10180.0123.
AB389, s. 41 11Section 41. 196.485 (1) (em) of the statutes is created to read:
AB389,37,1312 196.485 (1) (em) "Retail electric cooperative" means a cooperative that provides
13retail electric service to its members.
AB389, s. 42 14Section 42. 196.485 (1) (fe) of the statutes is created to read:
AB389,37,1815 196.485 (1) (fe) "Security" means, with respect to a transmission company
16organized as a corporation under ch. 180, a share, as defined in s. 180.0103 (15), and,
17with respect to a transmission company organized as a limited liability company
18under ch. 183, a limited liability company interest, as defined in s. 183.0102 (11).
AB389, s. 43 19Section 43. 196.485 (1) (ge) of the statutes is created to read:
AB389,38,220 196.485 (1) (ge) "Transmission company" means a corporation organized under
21ch. 180 or a limited liability company organized under ch. 183 that has as its sole
22purpose the planning, constructing, operating, maintaining and expanding of
23transmission facilities that it owns to provide for an adequate and reliable
24transmission system that meets the needs of all users that are dependent on the

1transmission system and that supports effective competition in energy markets
2without favoring any market participant.
AB389, s. 44 3Section 44. 196.485 (1) (gm) of the statutes is created to read:
AB389,38,64 196.485 (1) (gm) "Transmission dependent utility" means an electric utility
5that is not a transmission utility and that is dependent on the transmission system
6of another person for delivering electricity to the public utility's customers.
AB389, s. 45 7Section 45. 196.485 (1) (j) of the statutes is created to read:
AB389,38,118 196.485 (1) (j) "Transmission utility security holder" means a person that is a
9security holder of a transmission company, is an investor-owned transmission utility
10in the transmission area and has contributed its transmission facilities to the
11transmission company.
AB389, s. 46 12Section 46. 196.485 (1m) of the statutes is created to read:
AB389,38,1713 196.485 (1m) Duty to provide transmission service. (a) The duty of any
14electric utility that has contributed its transmission facilities to the transmission
15company to finance, construct, maintain or operate a transmission facility shall
16terminate on the date, as determined by the commission under sub. (2) (d), that the
17transmission company begins operations.
AB389,38,2218 (b) After beginning operations, the transmission company shall have the
19exclusive duty to provide transmission service in those areas in which transmission
20facilities have been contributed. The duty under this paragraph shall terminate on
21the date, as determined by the commission under sub. (2) (d), that the Midwest
22independent system operator begins operations.
AB389,39,223 (c) After beginning operations, the Midwest independent system operator shall
24have the exclusive duty to provide transmission service in the transmission area and
25shall ensure that each transmission facility in the transmission area that is under

1its operational control is planned, constructed, operated, maintained and controlled
2as part of a single transmission system.
AB389, s. 47 3Section 47. 196.485 (2) (a) (intro.) of the statutes is amended to read:
AB389,39,104 196.485 (2) (a) (intro.) By June 30, 2000, if a transmission utility has not
5transferred control over its transmission facilities to an independent system
6operator that is approved by the applicable federal agency or divested, with approval
7of the applicable federal agency and, for a public utility, the commission, its interest
8in its transmission facilities to an independent transmission owner, the commission
9shall, subject to par. pars. (am) and (ar), order the transmission utility to apply to the
10applicable federal agency to do one of the following:
AB389, s. 48 11Section 48. 196.485 (2) (ar) of the statutes is created to read:
AB389,39,1912 196.485 (2) (ar) The commission shall waive the requirement to issue an order
13against a transmission utility under par. (a) if the transmission utility shows, to the
14satisfaction of the commission, that a transfer of its transmission facilities to the
15Midwest independent system operator may have the effect of jeopardizing the
16tax-exempt status of the transmission utility or its securities under the Internal
17Revenue Code. A waiver under this paragraph shall be in effect until the commission
18determines that the proposed transfer does not have the effect described in this
19paragraph.
AB389, s. 49 20Section 49. 196.485 (2) (bx) of the statutes is created to read:
AB389,40,221 196.485 (2) (bx) If the Midwest system operator fails to commence operations
22or ceases operations, the requirements of this section that apply to the Midwest
23independent system operator shall apply to any other independent system operator
24or regional transmission organization that is authorized under federal law to operate
25in this state. The commission shall require that any transfer of transmission

1facilities to such independent system operator or regional transmission organization
2satisfies the requirements of this section.
AB389, s. 50 3Section 50. 196.485 (2) (d) of the statutes is created to read:
AB389,40,44 196.485 (2) (d) The commission shall determine each of the following:
AB389,40,55 1. The date on which the transmission company begins operations.
AB389,40,76 2. Whether the Midwest independent system operator has begun operations
7and the date on which such operations have begun.
AB389, s. 51 8Section 51. 196.485 (3) (bm) of the statutes is repealed.
AB389, s. 52 9Section 52. 196.485 (3m) of the statutes is created to read:
AB389,40,1110 196.485 (3m) Transmission company. (a) Duties. 1. The transmission company
11shall do each of the following:
AB389,40,1312 a. Apply for any approval under state or federal law that is necessary for the
13transmission company to begin operations no later than November 1, 2000.
AB389,40,2014 b. Subject to any approval required under state or federal law, contract with
15each transmission utility that has transferred transmission facilities to the
16transmission company for the transmission utility to provide reasonable and
17cost-effective operation and maintenance services to the transmission company
18during the 3-year period after the transmission company first begins operations.
19The transmission company and a transmission utility may, subject to any approval
20required under federal or state law, agree to an extension of such 3-year period.
AB389,41,221 c. Assume the obligations of a transmission utility that has transferred
22ownership of its transmission facilities to the transmission company under any
23agreement by the transmission utility to provide transmission service over its
24transmission facilities or credits for the use of transmission facilities, except that the

1transmission company may modify such an agreement to the extent allowed under
2the agreement and to the extent allowed under state or federal law.
AB389,41,83 d. Apply for membership in the Midwest independent system operator as a
4single zone for pricing purposes that includes the transmission area and, upon a
5determination by the commission under sub. (2) (d) that the Midwest independent
6system operator has begun operations, transfer operational control of the
7transmission company's transmission facilities to the Midwest independent system
8operator.
AB389,41,149 e. Remain a member of the Midwest independent system operator, or any
10independent system operator or regional transmission organization that has been
11approved under federal law to succeed the Midwest independent system operator, for
12at least the 6-year transition period that is specified in the agreement conditionally
13approved by the federal energy regulatory commission that establishes the Midwest
14independent system operator.
AB389,41,1615 f. Except as provided in subd. 4., elect to be included in a single zone for the
16purpose of any tariff administered by the Midwest independent system operator.
AB389,41,1717 2. The transmission company may not do any of the following:
AB389,41,2118 a. Sell or transfer its assets to, or merge its assets with, another person, unless
19the assets are sold, transferred or merged on an integrated basis and in a manner
20that ensures that the transmission facilities in the transmission area are planned,
21constructed, operated, maintained and controlled as a single transmission system.
AB389,41,2322 b. Bypass the distribution facilities of an electric utility or provide electric
23service directly to a retail customer.
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