AB748: Bill Text

The bill directs the PSC to conduct a study on relieving transmission constraints in other states that adversely affect the reliability of electric service provided to customers in this state. The PSC must submit a report on the study to the legislature that describes the transmission constraints, the efforts undertaken to relieve the constraints and any recommendations, in the form of proposed legislation or action by the PSC or the governor, for relieving the constraints.

Strategic energy assessment and certificates of public convenience and necessity

The bill eliminates the requirement for certain public utilities and cooperative associations to submit advance plans for approval by the PSC and requires instead that the PSC prepare a strategic energy assessment. In addition, the bill makes changes to the requirements pertaining to the certificates of public convenience and necessity that a person must obtain in order to construct certain electric generating facilities, transmission lines and other projects.

Strategic energy assessment

Under current law, certain public utilities and cooperative associations are required to submit biennial advance plans to the PSC that include certain information about their plans to construct the following: 1) "large electric generating facilities", which are defined as facilities with a capacity of between 12,000 and 300,000 kilowatts; 2) "bulk electric generating facilities", which are defined as facilities with a capacity of 300,000 kilowatts or more; and 3) "high-voltage transmission lines", which are defined as lines that are longer than one mile and that operate at 100 kilovolts or more. After holding a hearing on a plan, the PSC may approve a plan if the PSC finds that that plan will provide a reasonably adequate supply of electrical energy to meet the needs of the public and that the plan satisfies certain other criteria. A public utility or cooperative association must also submit an advance plan to the lower Wisconsin state riverway board (board) if it intends to construct, modify or relocate a high-voltage transmission line in the lower Wisconsin riverway (riverway). The board must approve the plan if it determines that the high-voltage transmission line will not impair, to the extent practicable, the scenic beauty or natural value of the riverway.

This bill eliminates the requirements pertaining to advance plans and requires instead that the PSC prepare an annual strategic energy assessment that evaluates the adequacy and reliability of the state's current and future energy supply. In addition, the bill requires a person to obtain a permit from the board in order to construct, modify or relocate a high-voltage transmission line in the riverway. The board may not issue the permit unless it makes the same determination as under current law.

The strategic energy assessment must identify and describe facilities that generate over 200,000 kilowatts on which public utilities, cooperative associations and certain other persons plan to begin construction within 3 years. The strategic energy assessment must also include information about high-voltage transmission lines on which a public utility or cooperative association plans to begin construction in the next 18 months. In addition, the strategic energy assessment must describe all of the following: 1) any plans for assuring that there is an adequate ability to transfer electric power into the state and the area served by MAIN; 2) the projected demand for electric power; 3) activities to discourage inefficient and excessive power use; 4) existing and planned generating facilities that use renewable energy sources; 5) the extent to which the regional bulk-power market is contributing to the adequacy and reliability of the state's electrical supply; 6) the extent to which effective competition is contributing to a reliable, low-cost and environmentally sound source of electricity; and 7) whether sufficient electric capacity and energy is available at a reasonable price. The PSC must promulgate rules that require public utilities and cooperative associations to report information that is necessary for the PSC to prepare the strategic energy assessment.

The PSC is required to issue a draft version of the strategic energy assessment no later than July 1 of each year. Any state agency, county, municipality, town or person may submit comments on the draft. The PSC must hold a public hearing on the strategic energy assessment and, at least 30 days before the hearing, the PSC must make available to the public an environmental assessment that it prepares on the strategic energy assessment. Within 90 days after the hearing, the PSC must issue a final version of the draft.

Certificates of public convenience and necessity

Under current law, a person may not begin constructing a large or bulk electric generating facility or high-voltage transmission line without obtaining a certificate of public convenience and necessity (certificate) from the PSC. A person that is not a public utility or cooperative association is exempt from this requirement if the person reasonably anticipates that the person will consume no less than 70% of the aggregate kilowatt hours output from electric generating facilities in manufacturing processes at the site where the facilities are located. Before filing an application for a certificate for a large or bulk electric generating facility, a person must provide an engineering plan to the department of natural resources (DNR), which must provide the person with a list of DNR permits and approvals that, based on the engineering plan, appear to be required for the facility. In consultation with the PSC, DNR may specify whether any permits or approvals must be obtained before the PSC may issue the certificate.

Also under current law, the PSC must take final action on an application for a certificate, and DNR must take final action on an application for the permits and approvals, within specified deadlines that depend on whether the application concerns a large or bulk electric generating facility or a high-voltage transmission line. After holding a public hearing on an application for a certificate, the PSC must issue the certificate if it makes certain determinations, including the following: 1) the proposed facility or line is in substantial compliance with the most recent advance plan; 2) the proposed facility or line is necessary to satisfy the reasonable needs of the public; 3) the design and location are in the public interest; 4) the proposed facility or line will not have an undue adverse impact on environmental values; and 5) the proposed facility or line will not unreasonably interfere with orderly land use and development plans. However, the PSC may not issue a certificate until DNR issues the specified permits and approvals.

This bill changes the types of facilities that are subject to the above requirements and changes the procedure for issuing a certificate by the PSC and the permits and approval by DNR. The bill requires a person to obtain a certificate from the PSC before beginning construction of any of the following: 1) "large electric generating facilities", which the bill defines as facilities with a capacity of 50,000 kilowatts or more; and 2) "high-voltage transmission lines", which the bill defines as lines that are longer than 5 miles but that operate at the same voltage as under current law.

The bill requires a person to file an application for a certificate within 6 months before beginning construction. The PSC must notify the applicant about whether an application is complete within 30 days after filing and a person may refile an incomplete application. If the PSC does not determine whether an application is complete within the 30-day deadline, the application is considered to be complete. At the same time that a person applies for a certificate, the person must provide DNR with an engineering plan and, within 30 days after receiving the plan, DNR must provide the person with a list of permits and approvals that appear to be applicable. Within 20 days after DNR provides the list, the person must apply for the permits and approvals. DNR is subject to a similar 30-day deadline in which DNR must notify an applicant about whether an application is complete. DNR must complete action on the permits and approvals within 90 days after an application is determined or considered to be complete.

Within 180 days after an application for a certificate is determined or considered to be complete, the PSC must take final action on the application, unless the circuit court for Dane County grants an extension. After holding a public hearing, the PSC may issue a certificate only if it makes the same determinations under current law described above, except for the first determination regarding compliance with an advance plan. In addition, the PSC does not have to make the 2nd determination regarding need if a large electric generating facility is a "wholesale merchant plant", which the bill defines as electric generating facilities that do not provide service to any retail customer and that are owned by a person who is not a public utility, an affiliate of a public utility, or a cooperative association. Also, the PSC must determine that the proposed large electric generating facility or high-voltage transmission line will not have a material adverse impact on competition in the relevant wholesale electric service market. Such a determination is not required under current law. Finally, the PSC may not issue a certificate until the DNR has issued the permits and approvals identified in the list provided by the DNR.

The bill also changes the exemption from the requirement to obtain a certificate. Under the bill, a person that is not a public utility or cooperative association may qualify for the exemption only if the person is also not a public utility affiliate or otherwise affiliated with a public utility.

Public utility construction projects

Under current law, the PSC may require that a public utility obtain a certificate of public convenience and necessity before it begins certain construction projects. Under this bill, a public utility that provides electric service is exempt from this requirement if the project is not the construction of a nuclear power plant and the cost of the project is less than an amount based on the public utility's annual gross operating revenues. If a public utility's annual gross operating revenues are less $5,000,000, the exemption applies to projects that cost less than $100,000. If such revenues are between $5,000,000 and $250,000,000, the exemption applies to projects that cost less than 2% of the revenues. If such revenues are more than $250,000,000, the exemption applies to projects that cost less than $5,000,000.

Out-of-state electric power sales

The bill requires the PSC, in setting rates, to reduce the revenue requirement of a public utility by an amount that reflects the fixed capital costs of electric generating facilities within the state that are incurred to make sales to customers outside the state whom the public utility does not have a duty to serve. The bill also prohibits a public utility from making such a sale if the sale interferes with the public utility's ability to provide cost-effective, reliable electric service to customers in this state that the public utility has a duty to serve.

Large electric generating facility standards

The bill requires the PSC to promulgate rules establishing standards for the inspection, maintenance, operation and repair of large electric generating facilities that are owned by, or provide service to, public utilities. "Large electric generating facilities" are defined as facilities with a capacity of 50,000 kilowatts or more. The PSC must also promulgate rules establishing penalties for violating the standards.

Other

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB748, s. 1 Section 1. 30.025 (1) of the statutes is amended to read:

AB748,7,10 30.025 (1) Any electric utility, as defined in s. 196.491 (1) (d), proposing to construct a facility, as defined in s. 196.491 (1) (e), which facility is to be located adjacent to a waterway in such a manner as to require one or more permits to be issued under this chapter and ch. 31 may, in lieu of separate application for permits under those chapters, submit an engineering plan together with any additional information required by the department. Such plan shall be filed with the department within 20 days after an application for a certificate of public convenience and necessity is filed with the public service commission under s. 196.491 (3). The department may require supplemental information to be furnished thereafter.

AB748, s. 2 Section 2. 30.025 (4) of the statutes is amended to read:

AB748,8,4 30.025 (4) The permit may be issued upon stated conditions deemed necessary to assure compliance with the criteria designated under sub. (3). The department shall grant or deny the application within the time limit applicable under s. 196.491 (3) (f) (a) 3. b.

AB748, s. 3 Section 3. 30.44 (3m) (title) of the statutes is amended to read:

AB748,8,6 30.44 (3m) (title) Utility facilities ; high-voltage transmission lines.

AB748, s. 4 Section 4. 30.44 (3m) (a) of the statutes is amended to read:

AB748,8,10 30.44 (3m) (a) A person shall apply to and receive a permit from the board before constructing, modifying or relocating a utility facility or high-voltage transmission line that is in the riverway.

AB748, s. 5 Section 5. 30.44 (3m) (b) of the statutes is amended to read:

AB748,8,15 30.44 (3m) (b) A person may not be issued a permit for an activity in par. (a) unless the performance standard in par. (c) is met and, for a high-voltage transmission line, the board finds that the activity will not impair, to the extent practicable, the scenic beauty or natural value of the riverway.

AB748, s. 6 Section 6. 30.44 (3m) (d) of the statutes is amended to read:

AB748,8,20 30.44 (3m) (d) The use of an aboveground utility facility shall not be a basis for the board to determine that all reasonable efforts will not be taken to minimize the visual impact. The board may not require a high-voltage transmission line to be placed underground in order to make the finding specified in par. (b).

AB748, s. 7 Section 7. 30.45 (1r) of the statutes is amended to read:

AB748,8,24 30.45 (1r) No person may construct, modify or relocate a high-voltage transmission line unless it has been approved under s. 30.44 (3m) or 196.491 (3) (d) 3m. or 196.492.

AB748, s. 8 Section 8. 32.03 (5) (a) of the statutes is amended to read:

AB748,9,6 32.03 (5) (a) If an electric utility is required to obtain a certificate of public convenience and necessity from the public service commission under s. 196.491 (3), no right to acquire real estate or personal property appurtenant thereto or interest therein for such project by condemnation shall accrue or exist under s. 32.02 or 32.075 (2) until such a certificate of public convenience and necessity has been issued.

AB748, s. 9 Section 9. 32.03 (5) (b) 1. of the statutes is amended to read:

AB748,9,8 32.03 (5) (b) 1. Such a limited interest does not run for more than 3 years; and

AB748, s. 10 Section 10. 32.03 (5) (b) 2. of the statutes is amended to read:

AB748,9,12 32.03 (5) (b) 2. Activities associated with such tests or studies will be conducted at reasonable hours with minimal disturbance, and the property will be reasonably restored to its former state, upon completion of such tests or studies ; and.

AB748, s. 11 Section 11. 32.03 (5) (b) 3. of the statutes is repealed.

AB748, s. 12 Section 12. 32.06 (7) of the statutes is amended to read:

AB748,9,25 32.06 (7) Petition for condemnation proceedings. If the jurisdictional offer is not accepted within the periods limited in sub. (6) or the owner fails to consummate an acceptance as provided in sub. (6), the condemnor may present a verified petition to the circuit court for the county in which the property to be taken is located, for proceedings to determine the necessity of taking, where such determination is required, and the amount of just compensation. The petition shall state that the jurisdictional offer required by sub. (3) has been made and rejected; that it is the intention of the condemnor in good faith to use the property or right therein for the specified purpose. It shall name the parties having an interest of record in the property as near as may be and shall name the parties who are minors or persons of unsound mind or unknown. The petition may not disclose the amount of the jurisdictional offer, and if it does so it is a nullity. The petition shall be filed with the clerk of the court. Notice of the petition shall be given as provided in s. 32.05 (4) to all persons having an interest of record in the property, including the special guardian appointed for minors or incompetent persons. A lis pendens shall be filed on the date of filing the petition. The date of filing the lis pendens is the "date of evaluation" of the property for the purpose of fixing just compensation, except that if the property is to be used in connection with the construction of a facility, as defined under s. 196.491 (1), the "date of evaluation" is the date that the first advance plan identifying the property as a site or route under s. 196.491 (2) (a) 3. is filed with the public service commission, or the date which is 2 years prior to the date on which the certificate of public convenience and necessity is issued for the facility, whichever is earlier. The hearing on the petition may not be earlier than 20 days after the date of its filing unless the petitioner acquired possession of the land under s. 32.12 (1) in which event this hearing is not necessary. If the petitioner is entitled to condemn the property or any portion of it, the judge immediately shall assign the matter to the chairperson of the county condemnation commissioners for hearing under s. 32.08. An order by the judge determining that the petitioner does not have the right to condemn or refusing to assign the matter to the chairperson of the county condemnation commissioners may be appealed directly to the court of appeals.

AB748, s. 13 Section 13. 32.07 (1) of the statutes is amended to read:

AB748,10,23 32.07 (1) A certificate of public convenience and necessity issued under s. 196.491 (3) shall constitute the determination of the necessity of the taking for any lands or interests described in the certificate.

AB748, s. 14 Section 14. 32.07 (1m) of the statutes is repealed.

AB748, s. 15 Section 15. 32.075 (3) (a) 2. of the statutes is amended to read:

AB748,11,6 32.075 (3) (a) 2. The public service commission revokes a certificate of public convenience and necessity required under s. 196.491 (3) (a) 1. or finds that a state or federal agency has denied or revoked any license, permit, certificate or other requirement on which completion of the public utility's project for which the land was condemned is contingent or that the public utility has for any other reason abandoned a project for which the condemned property was acquired.

AB748, s. 16 Section 16. 32.09 (2m) of the statutes is amended to read:

AB748,11,13 32.09 (2m) In determining just compensation for property sought to be condemned in connection with the construction of facilities, as defined under s. 196.491 (1) (e), any increase in the market value of such property occurring after the date of evaluation but before the date upon which the lis pendens is filed under s. 32.06 (7) shall be considered and allowed to the extent it is caused by factors other than the planned facility.

AB748, s. 17 Section 17. 66.073 (10) (a) of the statutes is renumbered 66.073 (10).

AB748, s. 18 Section 18. 66.073 (10) (b) of the statutes is repealed.

AB748, s. 19 Section 19. 86.16 (1) of the statutes is amended to read:

AB748,11,24 86.16 (1) Any person, firm or corporation, including any foreign corporation authorized to transact business in this state may, subject to ss. 30.44 (3m), 30.45, and 196.491 (3) (d) 3m. and 196.492, with the written consent of the department with respect to state trunk highways, and with the written consent of local authorities with respect to highways under their jurisdiction, including connecting highways, construct and operate telegraph, telephone or electric lines, or pipes or pipelines for the purpose of transmitting messages, water, heat, light or power along, across or within the limits of the highway.

AB748, s. 20 Section 20. 182.017 (1) of the statutes is amended to read:

AB748,12,14 182.017 (1) Right-of-way for. Any domestic corporation organized to furnish telegraph or telecommunications service or transmit heat, power or electric current to the public or for public purposes, and any cooperative association organized under ch. 185 to furnish telegraph or telecommunications service or transmit heat, power or electric current to its members, may, subject to ss. 30.44 (3m), 30.45, 86.16, and 196.491 (3) (d) 3m. and 196.492 and to reasonable regulations made by any city, village or town through which its transmission lines or systems may pass, construct and maintain such lines or systems with all necessary appurtenances in, across or beneath any public highway or bridge or any stream or body of water, or upon any lands of any owner consenting thereto, and for such purpose may acquire lands or the necessary easements; and may connect and operate its lines or system with other lines or systems devoted to like business, within or without this state, and charge reasonable rates for the transmission and delivery of messages or the furnishing of heat, power or electric light.

AB748, s. 21 Section 21. 196.01 (5) of the statutes is renumbered 196.01 (5) (a) (intro.) and amended to read:

AB748,12,17 196.01 (5) (a) (intro.) "Public utility" means every each of the following:

AB748,12,25 1. Every corporation, company, individual, association, their lessees, trustees or receivers appointed by any court, and every sanitary district, town, village or city that may own, operate, manage or control any toll bridge or all or any part of a plant or equipment, within the state, for the production, transmission, delivery or furnishing of heat, light, water or power either directly or indirectly to or for the public. "Public utility" does not include a cooperative association organized under ch. 185 for the purpose of producing or furnishing heat, light, power or water to its members only. "Public utility" includes any

AB748,13,4 2. A person engaged in the transmission or delivery of natural gas for compensation within this state by means of pipes or mains and any person, except a governmental unit, who furnishes services by means of a sewerage system either directly or indirectly to or for the public. "Public utility" includes a

AB748,13,5 3. A telecommunications utility. "Public utility" does not include a

AB748,13,9 (b) 1. A holding company, as defined in s. 196.795 (1) (h), unless the holding company furnishes, directly to the public, telecommunications or sewer service, heat, light, water or power or, by means of pipes or mains, natural gas. "Public utility" does not include any

AB748,13,13 2. A company, as defined in s. 196.795 (1) (f), which owns, operates, manages or controls a telecommunications utility unless the company furnishes, directly to the public, telecommunications or sewer service, heat, light, water or power or, by means of pipes or mains, natural gas. "Public utility" does not include a

AB748,13,14 3. A cellular mobile radio telecommunications utility.

AB748, s. 22 Section 22. 196.01 (5) (a) 4. and (b) (intro.) and 4. of the statutes are created to read:

AB748,13,18 196.01 (5) (a) 4. The independent system operator, as defined in s. 196.485 (1) (a).

AB748,13,19 (b) (intro.) "Public utility" does not include any of the following:

AB748,13,21 4. A cooperative association organized under ch. 185 for the purpose of producing or furnishing heat, light, power or water to its members only.

AB748, s. 23 Section 23. 196.025 of the statutes is amended to read:

AB748,14,3 196.025 Duties of the commission. To the extent cost-effective, technically feasible and environmentally sound, the commission shall implement the priorities under s. 1.12 (4) in making all energy-related decisions and orders, including advance plan, rate setting and rule-making orders, and in preparing strategic energy assessments under s. 196.491 (2) (a) and approving certificates of public convenience and necessity under s. 196.491 (3).

AB748, s. 24 Section 24. 196.03 (5m) of the statutes is created to read:

AB748,14,9 196.03 (5m) In setting rates for retail electric service, the commission shall reduce the revenue requirement of a public utility by an amount that reflects, as determined by the commission, the fixed capital costs of generating facilities within the state that are incurred to make any sale to a customer outside this state that the public utility does not have a duty to serve.

AB748, s. 25 Section 25. 196.03 (7) of the statutes is created to read:

AB748,14,16 196.03 (7) (a) If the commission determines after notice and hearing that an adequate supply of retail electric service will not be available to public utility customers at reasonable rates, the commission may order a public utility that has a duty to serve retail electric customers to take measures that ensure that an adequate supply of retail electric service will be available to such customers at reasonable rates, including doing any of the following:

AB748,14,20 1. Constructing or contracting for the construction of, on an individual basis or jointly with other public utilities, electric generation or transmission facilities. An order under this subdivision requiring a public utility to enter into contracts shall require the public utility to solicit competitive bids for the contracts.

AB748,14,21 2. Purchasing electric capacity and energy.

AB748,14,22 3. Participating in regional associations, power pools and networks.

AB748,14,24 4. Taking any other measure that the commission determines is necessary to ensure an adequate supply of retail electric service at reasonable rates.

AB748,15,2 (b) The commission shall establish mechanisms that it determines to be just and reasonable for the recovery of the costs of the measures specified in par. (a).

AB748, s. 26 Section 26. 196.375 (title) of the statutes is amended to read:

AB748,15,5 196.375 (title) Adequate service; reasonable rates; reliable retail electric service.

AB748, s. 27 Section 27. 196.375 of the statutes is renumbered 196.375 (1) and amended to read:

AB748,15,16 196.375 (1) Upon complaint by any party affected, setting forth that any grantee of a permit to develop hydraulic power and generate hydroelectric energy for sale or service to the public is not furnishing consumers of this state with adequate service at a reasonable rate as a result of sales of the energy outside of the state, the commission may declare any or all contracts entered into by the grantee for the sales null and void insofar as the contracts interfere with the service or rate. The commission may not make a declaration under this section subsection except after a hearing and investigation and a recorded finding that convenience and necessity require the sale of a specified part or all such energy within this state.

AB748, s. 28 Section 28. 196.375 (2) of the statutes is created to read: