Amendment AA10-AB389

AB389-AA10,2,16 4. A corporation operating the public utility or out-of-state utility or a servicing organization for furnishing supervisory, construction, engineering, accounting, legal and similar services to the public utility or out-of-state utility, has one or more officers or one or more directors in common with the public utility or out-of-state utility, and any other corporation that has directors in common with the public utility or out-of-state utility if the number of such directors of the corporation is more than one-third of the total number of the public utility's or out-of-state utility's directors.

AB389-AA10,2,21 5. A person that the commission determines as a matter of fact after investigation and hearing to be actually exercising any substantial influence over the policies and actions of the public utility or out-of-state utility even if the influence is not based upon stockholding, stockholders, directors or officers as specified under subds 1. to 4.

AB389-AA10,3,3 6. A person that the commission determines as a matter of fact after investigation and hearing to be actually exercising substantial influence over the policies and actions of the public utility or out-of-state utility in conjunction with one or more other persons that are related by ownership or blood relationship or by action in concert and that together are affiliated with the public utility or out-of-state utility, even though no one of them alone is so affiliated under subds. 1. to 5.

AB389-AA10,3,5 7. A person 5% or more of the securities of which are directly or indirectly owned by the public utility or out-of-state utility.

AB389-AA10,3,6 (b) "Appliance" has the meaning given in s. 196.795 (1) (b).

AB389-AA10,3,9 (bg) "Cooperative association" means a cooperative association organized under ch. 185 for the purpose of producing, transmitting, delivering or furnishing heat, light, power, natural gas or water to its members only.

AB389-AA10,3,10 (bh) "Holding company system" has the meaning given in s. 196.795 (1) (i).

AB389-AA10,3,11 (bL) "Municipal electric company" has the meaning given in s. 66.073 (3) (d).

AB389-AA10,3,12 (bm) "Municipality" means a city, village or town.

AB389-AA10,3,13 (bp) "Nonutility affiliate" has the meaning given in s. 196.795 (1) (j).

AB389-AA10,3,15 (br) 1. "Out-of-state utility" means a person that is not a public utility and that is any of the following:

AB389-AA10,3,18 a. A person that is engaged in the production, transmission, delivery or furnishing of heat, light, power or natural gas either directly or indirectly to or for the use of the public in another state.

AB389-AA10,3,20 b. A lessee, trustee or court-appointed receiver of a person specified in subd. 1. a.

AB389-AA10,3,24 c. A person that, in any chain of successive ownership, directly or indirectly as a beneficial owner, owns, controls or holds 5% or more of the outstanding voting securities or other voting interest of a person specified in subd. 1. a., with the unconditional power to vote the securities or interest.

AB389-AA10,4,3 2. "Out-of-state utility" does not include a person specified in subd. 1. a. that is, or is owned or wholly operated by, a municipal electric company, municipality or cooperative association.

AB389-AA10,4,4 (c) 1. "Public utility" means any of the following:

AB389-AA10,4,7 a. A person that is engaged in the production, transmission, delivery or furnishing of heat, light, power or natural gas either directly or indirectly to or for the use of the public in this state.

AB389-AA10,4,9 b. A lessee, trustee or court-appointed receiver of a person specified in subd. 1. a.

AB389-AA10,4,12 2. "Public utility" does not include a person specified in subd. 1. a. that is, or is owned or wholly operated by, a municipal electric company, municipality or cooperative association.

AB389-AA10,4,13 (d) "Public utility affiliate" has the meaning given in s. 196.795 (1) (L).

AB389-AA10,4,14 (2) In general. Except as provided in subs. (2g), (2m), (3) and (5):

AB389-AA10,4,16 (a) A public utility may not engage in an activity related to the sale, leasing or service of appliances.

AB389-AA10,4,20 (b) A public utility may not engage in the performance of a plumbing, electrical, heating, ventilating, air conditioning or sheet metalworking contracting service unless the service is performed in or on exempt real property, as defined in s. 196.795 (1) (fm).

AB389-AA10,5,5 (2g) Contracting services. (a) Except as provided in par. (b), a public utility may perform plumbing, electrical, heating, ventilating, air conditioning or sheet metalworking contracting services in a calendar year if the number of hours in which the services are performed in the calendar year does not exceed the number of hours in which the public utility performed such services in calendar year 1997, 1998 or 1999. For purposes of this paragraph, "contracting services" include employe travel time, on-premises services, truck stocking, cost estimating and repeat calls to customers. A public utility that performs contracting services under this paragraph shall report to the commission the number of hours in which the public utility performed such services in calendar years 1997, 1998 and 1999.

AB389-AA10,5,9 (b) A public utility may perform contracting services specified in par. (a) in a calendar year in excess of the number of hours specified in par. (a) by an amount that reflects the percentage increase in the number of customers served by the public utility in the calendar year.

AB389-AA10,5,11 (2m) Street lighting. A public utility may provide, operate or maintain lighting systems on public streets on behalf of a municipality.

AB389-AA10,5,16 (3) Emergency services. A public utility shall respond to emergency service requests related to gas odor or pressure, carbon monoxide, fire or other circumstances that reasonably appear to the public utility to endanger property or human health or life and may engage in emergency appliance service work in response to such requests.

AB389-AA10,5,19 (5) Contracts or arrangements with affiliated interests. Except as provided in sub. (6), a public utility may provide services to an affiliated interest pursuant to a contract or arrangement approved under s. 196.52.

AB389-AA10,5,21 (5m) Voting securities. A public utility may acquire the voting securities or other voting interest of an affiliated interest only in exchange for cash.

AB389-AA10,5,23 (6) Separation between public utilities and affiliated interests. (a) In general. 1. A public utility may not do any of the following:

AB389-AA10,5,25 a. Except as provided in subd. 4. a., share with or lease, sell or transfer to an affiliated interest any building, office space, equipment or research.

AB389-AA10,6,3 am. Share with or lease, sell or transfer to an affiliated interest any service or system related to appliances or any plumbing, electrical, heating, ventilating, air conditioning or sheet metalworking contracting service or system.

AB389-AA10,6,5 b. Allow an affiliated interest access to the public utility's computer or other information systems.

AB389-AA10,6,7 c. Share or subsidize the costs of an affiliated interest's research and development activities.

AB389-AA10,6,8 d. Jointly purchase with an affiliated interest any goods or services.

AB389-AA10,6,10 e. Jointly use with an affiliated interest any system for support or corporate oversight or governance.

AB389-AA10,6,11 1m. An affiliated interest may not do any of the following:

AB389-AA10,6,14 a. Except as provided in subd. 4. b., share with or lease, sell or transfer to a public utility or out-of-state utility any building, office space, equipment or research in this state.

AB389-AA10,6,18 am. Share with or lease, sell or transfer to a public utility or out-of-state utility any service or system in this state related to appliances or plumbing, electrical, heating, ventilating, air conditioning or sheet metalworking contracting service or system in this state.

AB389-AA10,6,20 b. Allow a public utility or out-of-state utility access to the affiliated interest's computer or other information systems in this state.

AB389-AA10,6,22 c. Share or subsidize the costs of the research and development activities in this state of a public utility or out-of-state utility.

AB389-AA10,6,24 d. Jointly purchase with a public utility or out-of-state utility any goods or services for use in this state.

AB389-AA10,7,2 e. Jointly use in this state with a public utility or out-of-state utility any system for support or corporate oversight or governance.

AB389-AA10,7,4 3. An affiliated interest and a public utility or out-of-state utility shall maintain separate books and records.

AB389-AA10,7,6 4. a. A public utility may sell real property to an affiliated interest only by a public sale or by offering the real property to the highest qualified bidder.

AB389-AA10,7,9 b. An affiliated interest may sell real property in this state to a public utility or out-of-state utility only by a public sale or by offering the real property to the highest qualified bidder.

AB389-AA10,7,10 (b) Restrictions on employes. 1. A public utility may not do any of the following:

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: