AB748: Bill Text

AB748,15,24 196.485 Independent system operator. (1) Definitions. In this section:

AB748,16,2 (a) "Independent system operator" means the corporation that the commission orders to be organized under sub. (2) (a).

AB748,16,5 (b) "Transmission area" means the area of the state that, on January 1, 1997, was served by the Mid-America Interconnected Network, Inc., reliability council of the North American Reliability Council.

AB748,16,7 (c) "Transmission facility" means any pipe, pipeline, duct, wire, line, conduit, pole, tower, equipment or other structure used for the transmission of electric power.

AB748,16,10 (d) "Transmission utility" means a public utility that owns a transmission facility and that, on January 1, 1997, provided electric service in the transmission area.

AB748,16,17 (2) Duties and powers of the commission. (a) No later than the first day of the 3rd month beginning after the effective date of this paragraph .... [revisor inserts date], the commission shall order the transmission utilities to organize a corporation under ch. 181 to perform the duties and exercise the powers of the independent system operator. The order shall establish a deadline by which the independent system operator and the transmission utilities are required to enter into an agreement under sub. (4) (a) 1.

AB748,16,22 (b) If the commission finds that an interstate entity has or will have duties with respect to a regional area that are equivalent to the duties of the independent system operator with respect to the transmission area, the commission may order the independent system operator to enter into an agreement to transfer control over the operation of transmission facilities to the interstate entity.

AB748,16,24 (3) Duties and powers of the independent system operator. The independent system operator shall do each of the following:

AB748,17,3 (a) Enter into an agreement under sub. (4) (a) 1. for the purpose of controlling, operating, maintaining, planning and making reasonable and necessary efforts to expand the electric transmission system in the transmission area.

AB748,17,4 (b) To the extent practicable, make efforts to do each of the following:

AB748,17,6 1. Provide least-cost and reliable electric transmission and control-area service to all users in the transmission area.

AB748,17,8 2. Ensure the reliable operation of the electric transmission grid in the transmission area.

AB748,17,10 3. Remove any advantages in the market for supply or sale of wholesale electric power that are related to ownership, control or operation of transmission facilities.

AB748,17,12 4. Prevent any material adverse effect on competition related to control or use of transmission facilities.

AB748,17,13 5. Prevent the use of the transmission facilities for an anticompetitive purpose.

AB748,17,15 6. Facilitate the development and efficient operation of an effectively competitive wholesale electric power market in the transmission area.

AB748,17,16 7. Participate in efforts to develop an interstate entity specified in sub. (2) (b).

AB748,17,18 (4) Transmission utility agreements. (a) Each transmission utility shall do each of the following:

AB748,17,21 1. Enter into an agreement with the independent system operator under which the transmission utility transfers control over the operation of all of its transmission facilities to the independent system operator.

AB748,17,24 2. Provide maintenance, construction and operational support to the independent system operator pursuant to a contract with the independent system operator.

AB748,18,7 (b) An agreement or contract specified in par. (a) 1. or 2. shall not be effective until approved by the commission. The commission shall approve an agreement under par. (a) 1. only if the commission finds that the agreement provides for the reasonable compensation of a transmission utility based on the transmission utility's net investment in its transmission facilities. The commission shall approve a contract under par. (a) 2. only if the commission finds that the contract is reasonable and cost-effective.

AB748, s. 30 Section 30. 196.49 (3) (a) of the statutes is amended to read:

AB748,18,16 196.49 (3) (a) In this subsection, "project" means construction of any new plant, equipment, property or facility of a public utility, or extension, improvement or addition to its the 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 of a public utility.

AB748, s. 31 Section 31. 196.49 (3) (b) (intro.), 2. and 3. of the statutes are amended to read:

AB748,18,22 196.49 (3) (b) (intro.) Except as provided in par. pars. (d) and (e), 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:

AB748,18,24 2. Provide facilities unreasonably in excess of the probable future requirements needs of the public.

AB748,19,4 3. When placed in operation, add to the cost of service without proportionately increasing the value or available quantity of service to customers that the public utility has a duty to serve unless the public utility waives consideration by the commission, in the fixation of rates, of such consequent increase of cost of service.

AB748, s. 32 Section 32. 196.49 (3) (e) of the statutes is created to read:

AB748,19,10 196.49 (3) (e) 1. A public utility that provides electric service is not required to obtain commission certification under par. (b) for a project proposed by the public utility, other than the construction of a nuclear power plant, as defined in s. 196.493 (1), that has a cost that is less than any of the following amounts, as annually adjusted for inflation by the commission in rules promulgated under subd. 2.:

AB748,19,12 a. If the public utility's annual gross operating revenues are less than $5,000,000, $100,000.

AB748,19,15 b. If the public utility's annual gross operating revenues are not less than $5,000,000 nor more than $250,000,000, 2% of the public utility's annual gross operating revenues.

AB748,19,17 c. If the public utility's annual gross operating revenues are more than $250,000,000, $5,000,000.

AB748,19,20 2. The commission shall promulgate rules that establish requirements for determining a public utility's annual gross operating revenues for purposes of subd. 1. and for annually adjusting the amounts specified in subd. 1. for inflation.

AB748, s. 33 Section 33. 196.491 (title) of the statutes is amended to read:

AB748,19,23 196.491 (title) Advance planning of electric Strategic energy assessment; electric generating facilities and transmission lines.

AB748, s. 34 Section 34. 196.491 (1) (a) of the statutes is repealed.

AB748, s. 35 Section 35. 196.491 (1) (am) of the statutes is created to read:

AB748,20,1 196.491 (1) (am) "Affiliated interest" has the meaning given in s. 196.52 (1).

AB748, s. 36 Section 36. 196.491 (1) (bm) of the statutes is created to read:

AB748,20,5 196.491 (1) (bm) "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.

AB748, s. 37 Section 37. 196.491 (1) (d) of the statutes is amended to read:

AB748,20,14 196.491 (1) (d) "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 organized under ch. 185 for the purpose of generating, distributing or furnishing electric energy at retail or wholesale to its members only, which owns or operates, or plans within the next 10 3 years to construct, own or operate, bulk electric generating facilities, large electric generating facilities or high-voltage transmission lines in the state.

AB748, s. 38 Section 38. 196.491 (1) (e) of the statutes is amended to read:

AB748,20,17 196.491 (1) (e) "Facility" means a bulk electric generating facility, a large electric generating facility or a high-voltage transmission line.

AB748, s. 39 Section 39. 196.491 (1) (f) of the statutes is amended to read:

AB748,20,24 196.491 (1) (f) 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 5 miles 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.

AB748, s. 40 Section 40. 196.491 (1) (g) of the statutes is amended to read:

AB748,21,3 196.491 (1) (g) "Large electric generating facility" means electric generating equipment and associated facilities designed for nominal operation at a capacity of between 12,000 and 300,000 50,000 kilowatts or more.

AB748, s. 41 Section 41. 196.491 (1) (p) of the statutes is created to read:

AB748,21,6 196.491 (1) (p) "Public utility affiliate" has the meaning given in s. 196.795 (1) (L).

AB748, s. 42 Section 42. 196.491 (1) (w) of the statutes is created to read:

AB748,21,11 196.491 (1) (w) "Wholesale merchant plant" means electric generating equipment and associated facilities located in this state that are owned and operated by a person that is not a public utility, public utility affiliate, affiliated interest or cooperative association and that does not provide service to any retail customer.

AB748, s. 43 Section 43. 196.491 (2) (title) of the statutes is repealed and recreated to read:

AB748,21,13 196.491 (2) (title) Strategic energy assessment.

AB748, s. 44 Section 44. 196.491 (2) (a) (intro.) of the statutes is repealed and recreated to read:

AB748,21,19 196.491 (2) (a) (intro.) The commission shall prepare an annual 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:

AB748, s. 45 Section 45. 196.491 (2) (a) 1. and 2. of the statutes are repealed.

AB748, s. 46 Section 46. 196.491 (2) (a) 3. of the statutes is amended to read:

AB748,22,6 196.491 (2) (a) 3. Identify the location of proposed and alternative specific sites for all bulk electric generating facilities and all and describe large electric generating facilities over 200,000 kilowatts for which a certificate of public convenience and necessity has not been applied for under sub. (3) but the commencement of whose construction is planned within 3 years, or such longer period as the commission deems necessary and indicate the impacts of the proposed and alternative generating facilities on the environment and the means by which potential adverse effects on such values will be avoided or minimized; on which an electric utility plans to commence construction within 3 years and wholesale merchant plants on which a person plans to commence construction within 3 years.

AB748, s. 47 Section 47. 196.491 (2) (a) 3g. of the statutes is created to read:

AB748,22,9 196.491 (2) (a) 3g. Assess the adequacy and reliability of purchased generation capacity and energy to serve the needs of the public.

AB748, s. 48 Section 48. 196.491 (2) (a) 3m. of the statutes is amended to read:

AB748,22,15 196.491 (2) (a) 3m. Identify the location of tentative and alternative routes for and describe high-voltage transmission lines on which an electric utility plans to commence construction is intended to be commenced in the succeeding within 18 months and indicate the effects of such transmission lines on the environment and the means by which potential adverse effects will be avoided or minimized;.

AB748, s. 49 Section 49. 196.491 (2) (a) 3r. of the statutes is created to read:

AB748,22,19 196.491 (2) (a) 3r. 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. 196.48 (1) (b), in a reliable manner.

AB748, s. 50 Section 50. 196.491 (2) (a) 4. of the statutes is amended to read:

AB748,22,22 196.491 (2) (a) 4. Indicate in detail Identify and describe the projected demand for electric energy and the basis for determining the projected demand ;.

AB748, s. 51 Section 51. 196.491 (2) (a) 5. and 6. of the statutes are repealed.

AB748, s. 52 Section 52. 196.491 (2) (a) 7. of the statutes is amended to read:

AB748,23,2 196.491 (2) (a) 7. Identify and describe existing and planned programs and policies activities to discourage inefficient and excessive power use; and.

AB748, s. 53 Section 53. 196.491 (2) (a) 8. of the statutes is repealed.

AB748, s. 54 Section 54. 196.491 (2) (a) 9. to 13. of the statutes are created to read:

AB748,23,6 196.491 (2) (a) 9. Identify and describe existing and planned generating facilities that use renewable sources of energy.

AB748,23,9 10. Consider the public interest in economic development, public health and safety, protection of the environment and diversification of sources of energy supplies.

AB748,23,11 11. Assess the extent to which the regional bulk-power market is contributing to the adequacy and reliability of the state's electrical supply.

AB748,23,13 12. Assess the extent to which effective competition is contributing to a reliable, low-cost and environmentally sound source of electricity for the public.

AB748,23,15 13. Assess whether sufficient electric capacity and energy will be available to the public at a reasonable price.

AB748, s. 55 Section 55. 196.491 (2) (ag) of the statutes is created to read:

AB748,23,19 196.491 (2) (ag) The commission shall promulgate rules that establish procedures and requirements for an electric utility to report information that is necessary for the commission to prepare strategic energy assessments under par. (a).

AB748, s. 56 Section 56. 196.491 (2) (am) of the statutes is renumbered 196.491 (2r) and amended to read:

AB748,24,2 196.491 (2r) (title) Local ordinances. No local ordinance may prohibit or restrict testing activities undertaken by a an electric utility for purposes of preparing advance plans or determining the suitability of a site for the placement of a facility. Any local unit of government objecting to such testing may petition the commission to impose reasonable restrictions on such activity.

AB748, s. 57 Section 57. 196.491 (2) (b) (intro.) of the statutes is repealed and recreated to read:

AB748,24,7 196.491 (2) (b) (intro.) On or before July 1, the commission shall issue a draft of the annual strategic energy assessment that it prepares under par. (a) to each of the following:

AB748, s. 58 Section 58. 196.491 (2) (b) 8. of the statutes is amended to read:

AB748,24,12 196.491 (2) (b) 8. The lower Wisconsin state riverway board if the plan 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).

AB748, s. 59 Section 59. 196.491 (2) (b) 9. of the statutes is created to read:

AB748,24,15 196.491 (2) (b) 9. Each electric utility that is required to report information to the commission under the rules promulgated under par. (ag).

AB748, s. 60 Section 60. 196.491 (2) (c) and (d) of the statutes are repealed.

AB748, s. 61 Section 61. 196.491 (2) (e) of the statutes is amended to read: