Amendment AA10-AB389

AB389-AA10,7,11 a. Lease any of its employes to an affiliated interest.

AB389-AA10,7,12 b. Employ the employes or officers of an affiliated interest.

AB389-AA10,7,16 c. Except as provided in par. (bg) 1., employ a person who was formerly employed by an affiliated interest during the 6-month period immediately prior to the person's employment by the public utility if the person was not employed by the affiliated interest for the entire 6-month period.

AB389-AA10,7,17 1m. An affiliated interest may not do any of the following:

AB389-AA10,7,19 a. Lease any of its employes in this state to a public utility or out-of-state utility.

AB389-AA10,7,21 b. Employ in this state the employes, board members or officers of a public utility or out-of-state utility.

AB389-AA10,8,2 c. Except as provided in par. (bg) 2., employ a person in this state who was formerly employed by a public utility or out-of-state utility with which the affiliated interest is affiliated during the 6-month period immediately prior to the person's employment by the affiliated interest if the person was not employed by the public utility or out-of-state utility for the entire 6-month period.

AB389-AA10,8,5 3. A public utility shall provide an annual report to the commission that describes its employment of persons formerly employed by an affiliated interest of the public utility.

AB389-AA10,8,11 (bg) Employment exception. 1. A public utility may employ a person who was formerly employed by an affiliated interest if the person's primary occupation during his or her former employment was the performance of plumbing, electrical, heating, ventilating, air conditioning or sheet metalworking contracting services for the affiliated interest's customers on no more than 10 separate occasions during a calendar year.

AB389-AA10,8,17 2. An affiliated interest may employ a person who was formerly employed by a public utility or out-of-state utility with which the affiliated interest is affiliated if the person's primary occupation during his or her former employment was the performance of plumbing, electrical, heating, ventilating, air conditioning or sheet metalworking contracting services for the public utility's or out-of-state utility's customers on no more than 10 separate occasions during a calendar year.

AB389-AA10,8,21 (bm) Exception for director, chief executive officer and certain personnel. Notwithstanding par. (b), a public utility may share a member of a board of directors, a chief executive officer or any personnel engaged solely in legal, accounting or payroll services with an affiliated interest.

AB389-AA10,8,22 (c) Marketing activities. 1. A public utility may not do any of the following:

AB389-AA10,8,23 a. Promote or advertise its affiliation with an affiliated interest.

AB389-AA10,8,24 b. Use the brand name, trademark or logo of an affiliated interest.

AB389-AA10,9,2 c. Use any type of marketing identification that resembles a type used by an affiliated interest.

AB389-AA10,9,3 d. Provide any information about its customers to an affiliated interest.

AB389-AA10,9,6 e. Participate with an affiliated interest in any marketing activity, including advertising, sales calls, proposals to existing or potential customers or trade shows, conferences or similar events.

AB389-AA10,9,7 1m. An affiliated interest may not do any of the following:

AB389-AA10,9,11 a. Use the corporate or trade name or a portion of the corporate or trade name of the public utility with which it is affiliated in the affiliated interest's corporate or trade name, except that an affiliated interest may indicate its affiliation, if any, with a holding company, as defined in s. 196.795 (1) (h).

AB389-AA10,9,13 b. Use in this state the brand name, trademark or logo of a public utility or out-of-state utility.

AB389-AA10,9,15 c. Use in this state any type of marketing identification that resembles a type used by a public utility or out-of-state utility.

AB389-AA10,9,17 d. Provide any information about its customers in this state to a public utility or out-of-state utility.

AB389-AA10,9,20 e. Participate with a public utility or out-of-state utility in any marketing activity in this state, including advertising, sales calls, proposals to existing or potential customers or trade shows, conferences or similar events.

AB389-AA10,9,23 2. A public utility may not provide an affiliated interest with advertising or promotional space on any form of communication, including a bill envelope, to a customer or potential customer of the public utility.

AB389-AA10,10,3 (d) Nondiscrimination. 1. A public utility may not treat its customers who are also customers of an affiliated interest any differently than the public utility treats its customers who are not also customers of an affiliated interest.

AB389-AA10,10,7 2. An affiliated interest may not treat its customers in this state who are also customers of a public utility or out-of-state utility with which the affiliated interest is affiliated any differently than the affiliated interest treats its customers who are not customers of the public utility or out-of-state utility.

AB389-AA10,10,11 (e) Providing certain information to customers. Except as directed by the commission, a public utility may not provide its customers with any information about persons who provide heating, ventilating, air conditioning, plumbing or electrical services or who sell, lease or repair appliances.

AB389-AA10,10,16 (f) Applicability. 1. In this paragraph, "plan approval date" means the date on which the commission approves or modifies a plan submitted by a public utility under subd. 2., except that if the commission fails to approve or modify a plan within the deadline specified under subd. 2., "plan approval date" means the first day of the 6th month beginning after the date on which the plan is received by the commission.

AB389-AA10,10,22 2. No later than the first day of the 6th month beginning after the effective date of this subdivision .... [revisor inserts date], a public utility may submit a plan to the commission that describes the actions necessary for the public utility and its affiliated interests to comply with pars. (a) to (e). No later than the first day of the 6th month beginning after the date on which a plan under this subdivision is received by the commission, the commission shall approve or modify the plan.

AB389-AA10,11,3 3. Paragraphs (a) to (e) first apply to a public utility on the first day of the 6th month beginning after the effective date of this subdivision .... [revisor inserts date], except that if a public utility submits a plan to the commission under subd. 2., pars. (a) to (e) first apply to the public utility on the first day of the 6th month beginning after the plan approval date. Paragraphs (a) to (e) first apply to an affiliated interest of a public utility on the date on which pars. (a) to (e) first apply to the public utility.

AB389-AA10,11,8 (7) Private cause of action and forfeiture. A public utility or affiliated interest that violates this section is liable to any person injured by the violation for 3 times the amount of damages incurred as a result of the violation, together with costs and, notwithstanding s. 814.04 (1), reasonable attorney fees, and shall forfeit $2,000 for each violation. Each day of violation is a separate violation.".

AB389-AA10,11,9 3. Page 57, line 17: after that line insert:

AB389-AA10,11,11 " Section 68b. 196.52 (3) (a) of the statutes, as affected by 1999 Wisconsin Act .... (this act), is renumbered 196.52 (3) (a) (intro.) and amended to read:

AB389-AA10,11,12 196.52 (3) (a) (intro.) In this subsection, "contract:

AB389-AA10,11,22 1. "Contract or arrangement" means a contract or arrangement providing for the furnishing of management, supervisory, construction, engineering, accounting, legal, financial, research, development or similar services and any contract or arrangement for the purchase, sale, lease or exchange of any property, right, or thing, or for the furnishing of any service, property, right, or thing, other than management, supervisory, construction, engineering, accounting, legal, financial or similar services, but "contract or arrangement" does not include a contract or arrangement under which a transmission utility, as defined in s. 196.485 (1) (i), sells or transfers securities, as defined in s. 196.485 (1) (fe), that have been issued by a transmission company, as defined in s. 196.485 (1) (ge).

AB389-AA10,12,7 (am) Except as provided under par. (b), unless and until the commission gives its written approval, any contract or arrangement is not valid or effective if the contract or arrangement is made between a public utility and an affiliated interest after June 7, 1931. Every public utility shall file with the commission a verified copy of any contract or arrangement, a verified summary of any unwritten contract or arrangement, and any contract or arrangement, written or unwritten, which was in effect on June 7, 1931. The commission shall may approve a contract or arrangement made or entered into after June 7, 1931, only if it shall clearly appear and be established upon all of the following conditions are met:

AB389-AA10,12,21 2. After investigation, the commission determines that it the contract or arrangement is reasonable and consistent with the public interest and does not result in a violation of s. 196.035 (6) or 196.795 (5) (f). The commission may not approve any contract or arrangement unless satisfactory proof is submitted to the commission of the cost to the affiliated interest of rendering the services or of furnishing the property or service to each public utility or of the cost to the public utility of rendering the services or of furnishing the property or service to each affiliated interest. No proof is satisfactory under this paragraph subdivision unless it includes the original (or verified copies) of the relevant cost records and other relevant accounts of the affiliated interest, or an abstract of the records and accounts or a summary taken from the records and accounts if the commission deems the abstract or summary adequate. The accounts shall be properly identified and duly authenticated. The commission, where reasonable, may approve or disapprove a contract or arrangement without submission of the cost records or accounts.

AB389-AA10, s. 68d Section 68d. 196.52 (3) (a) 2. of the statutes is created to read:

AB389-AA10,12,24 196.52 (3) (a) 2. "Exempt real property" has the meaning given in s. 196.795 (1) (fm).

AB389-AA10, s. 68e Section 68e. 196.52 (3) (am) 1. of the statutes is created to read:

AB389-AA10,13,5 196.52 (3) (am) 1. If the contract or arrangement involves an activity related to the sale, lease or service of appliances, as defined in s. 196.795 (1) (b), or the performance of plumbing, electrical, heating, ventilating, air conditioning or sheet metalworking contracting services, the activity or service is performed in or on exempt real property.

AB389-AA10, s. 68f Section 68f. 196.52 (3) (b) 1. of the statutes is amended to read:

AB389-AA10,13,18 196.52 (3) (b) 1. The Except for a contract or arrangement specified in par. (am) 1. that involves an activity or service that is performed on exempt real property, the requirement for written approval under par. (a) shall (am) does not apply to any a contract or arrangement if the amount of consideration involved is not in excess of $25,000 or 5% of the equity of the public utility, whichever is smaller. The requirement under par. (a) (am) also does not apply to a telecommunications utility contract or arrangement or to contracts or arrangements with joint local water authorities under s. 66.0735. Regularly recurring payments under a general or continuing arrangement which aggregate a greater annual amount may not be broken down into a series of transactions to come within the exemption under this paragraph. Any transaction exempted under this paragraph shall be valid or effective without commission approval under this section.

AB389-AA10, s. 68h Section 68h. 196.52 (3) (c) 1. of the statutes is amended to read:

AB389-AA10,13,21 196.52 (3) (c) 1. May not waive the requirement of the submission of cost records or accounts under par. (a) (am);

AB389-AA10, s. 68k Section 68k. 196.52 (3) (c) 2. of the statutes is amended to read:

AB389-AA10,13,25 196.52 (3) (c) 2. Shall review the accounts of the affiliated interest as they relate to the contract or arrangement prior to the commission approving or disapproving the contract or arrangement under par. (a) (am); and

AB389-AA10, s. 68m Section 68m. 196.52 (3) (d) of the statutes is created to read:

AB389-AA10,14,11 196.52 (3) (d) On the effective date of this paragraph .... [revisor inserts date], each public utility and affiliated interest that, before the effective date of this paragraph .... [revisor inserts date], have entered into a contract or arrangement that involves an activity related to the sale, lease or service of appliances, or that involves the performance of plumbing, electrical, heating, ventilating, air conditioning or sheet metalworking contracting services, shall terminate the contract or arrangement if the activity or service is not performed in or on exempt real property. In this paragraph, "public utility" does not include a public utility that is, or is owned or wholly operated by, a municipal electric company, as defined in s. 66.073 (3) (d), or a city, village or town.

AB389-AA10, s. 68o Section 68o. 196.52 (4) (a) of the statutes is amended to read:

AB389-AA10,14,19 196.52 (4) (a) In any proceeding, whether upon the commission's own motion or upon application or complaint, involving the rates or practices of any public utility, the commission may exclude from the accounts of the public utility any payment or compensation to or from an affiliated interest for any services rendered or property or service furnished under an existing contract or arrangement with an affiliated interest under sub. (3) (a) unless the public utility establishes the reasonableness of the payment or compensation (am).

AB389-AA10, s. 68q Section 68q. 196.52 (6) of the statutes is amended to read:

AB389-AA10,15,6 196.52 (6) If the commission finds upon investigation that a public utility, other than a telecommunications utility, is giving effect to a contract or arrangement without the commission's approval under this section, the commission shall issue a summary order directing that public utility to cease and desist from making any payments, receiving compensation, providing any service or otherwise giving any effect to the contract or arrangement until the contract or arrangement receives the approval of the commission. The circuit court of Dane county may enforce the order to cease and desist by appropriate process, including the issuance of a preliminary injunction, upon the suit of the commission and may require a public utility to forfeit $2,000 for each day that the public utility has given effect to a contract or arrangement without the commission's approval.

AB389-AA10, s. 68s Section 68s. 196.52 (7m) of the statutes is created to read:

AB389-AA10,15,11 196.52 (7m) A public utility who violates sub. (3) (am) is liable to any person injured as a result of the violation for 3 times the amount of damages incurred as a result of the violation, together with costs and, notwithstanding s. 814.04 (1), reasonable attorney fees.

AB389-AA10, s. 68u Section 68u. 196.59 of the statutes is amended to read:

AB389-AA10,15,18 196.59 Merchandising by utilities. Each public utility engaged in the production, transmission, delivery or furnishing of heat, light or power either directly or indirectly to or for the use of the public shall keep separate accounts to show any profit or loss resulting from the sale of appliances or other merchandise. The commission may not take the profit or loss into consideration in arriving at any rate to be charged for service by the public utility.

AB389-AA10, s. 68w Section 68w. 196.795 (1) (b) of the statutes is amended to read:

AB389-AA10,15,24 196.795 (1) (b) "Appliance" means any equipment used directly for lighting, cooking, drying, water tempering, space heating, space cooling or space ventilation. "Appliance" does not include equipment or devices which monitor or control the primary energy supply or source for any equipment used directly for lighting, cooking, drying, water tempering, space heating, space cooling or space ventilation.

AB389-AA10, s. 68y Section 68y. 196.795 (1) (fm) of the statutes is created to read:

AB389-AA10,16,2 196.795 (1) (fm) "Exempt real property" means real property that satisfies any of the following:

AB389-AA10,16,3 1. A public utility has an ownership or leasehold interest in the real property.

AB389-AA10,16,5 2. Except for real property that is an improvement, a public utility has an easement in the real property.

AB389-AA10,16,8 3. A public utility that is owned or operated wholly by a municipality or municipal electric company or a municipality or municipal electric company has an ownership or leasehold interest in the real property.

AB389-AA10,16,10 4. A cooperative association, as defined in s. 196.035 (1) (bg), has an ownership or leasehold interest in the real property.".

AB389-AA10,16,11 4. Page 58, line 4: after that line insert:

AB389-AA10,16,12 " Section 71g. 196.795 (1) (ik) of the statutes is created to read:

AB389-AA10,16,14 196.795 (1) (ik) "Municipal electric company" has the meaning given in s. 66.073 (3) (d).

AB389-AA10, s. 71r Section 71r. 196.795 (1) (im) of the statutes is created to read:

AB389-AA10,16,16 196.795 (1) (im) "Municipality" means a city, village or town.".

AB389-AA10,16,17 5. Page 59, line 10: after that line insert:

AB389-AA10,16,18 " Section 80b. 196.795 (5) (q) 1. of the statutes is repealed.

AB389-AA10, s. 80e Section 80e. 196.795 (5) (q) 2. (intro.) of the statutes is renumbered 196.795 (5) (q) and amended to read:

AB389-AA10,17,5 196.795 (5) (q) Except as provided under subd. 3., no No public utility affiliate or its subsidiary or a joint venture or partnership having a utility affiliate or its subsidiary as a member or partner may, in the service territory of the public utility affiliate, sell at retail, lease, install, maintain or service any appliance that uses as its primary energy source energy supplied by that public utility affiliate under rates and tariffs approved by the commission, unless the appliance is located in facilities owned or operated by that public utility affiliate or its subsidiary or unless the appliance is sold, leased, installed, maintained or serviced: located on exempt real property.

AB389-AA10, s. 80h Section 80h. 196.795 (5) (q) 2. a. of the statutes is repealed.

AB389-AA10, s. 80L Section 80L. 196.795 (5) (q) 2. b. of the statutes is repealed.

AB389-AA10, s. 80o Section 80o. 196.795 (5) (q) 2. c. of the statutes is repealed.

AB389-AA10, s. 80r Section 80r. 196.795 (5) (q) 3. of the statutes is repealed.

AB389-AA10, s. 80u Section 80u. 196.795 (5) (q) 4. of the statutes is repealed.".

AB389-AA10,17,11 6. Page 61, line 14: after that line insert:

AB389-AA10,17,12 " Section 87m. 196.795 (9m) of the statutes is amended to read:

AB389-AA10,17,22 196.795 (9m) (title) Private cause of action and forfeiture. Any company in a holding company system which does, causes or permits to be done any prohibited action under sub. (5) (c) to (dr), (f), (h), (k), (n), (q), (r) or (s), or fails to comply with any term, limitation or condition imposed under sub. (2) (e) or (f) consistent with sub. (5) (c) to (dr), (f), (h), (k), (n), (q), (r) or (s), is liable to any person injured thereby in treble for 3 times the amount of damages sustained in consequence incurred as a result of the prohibited action or failure to act, together with costs and, notwithstanding s. 814.04 (1), reasonable attorney fees, and shall forfeit $2,000 for each violation or failure to comply. Each day of violation or failure to comply is a separate violation or failure to comply.".

AB389-AA10,17,23 7. Page 67, line 7: after "(1)" insert "Certificate applications.".

AB389-AA10,17,24 8. Page 67, line 10: before "The" insert "License fee.".

AB389-AA10,18,1 9. Page 67, line 16: after that line insert:

AB389-AA10,18,6 "(2e) Contracts or arrangements with affiliates. The treatment of sections 196.52 (3) (am) 1. and 196.795 (1) (b) of the statutes, the renumbering and amendment of section 196.52 (3) (a) of the statutes and the creation of section 196.52 (3) (a) 2. of the statutes first apply to contracts or arrangements entered into, renewed, extended or modified on the effective date of this subsection.

AB389-AA10,18,10 (2m) Separation between public utilities and affiliated interests. The treatment of sections 196.035, 196.52 (3) (a) 2. and 196.795 (1) (b) of the statutes first applies to contracts for leases, sales or purchases or transactions that are entered into, renewed, extended or modified on the effective date of this subsection.

AB389-AA10,18,11 (2s) Forfeitures and attorney fees.

AB389-AA10,18,13 (a ) The treatment of section 196.795 (9m) of the statutes first applies to violations or failures to comply that occur on the effective date of this paragraph.