AB940: Bill Text

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 or unless another state is also taking action on the same or a related application. After holding a public hearing, the PSC may issue a certificate only if it makes the same determinations under current law described above. 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 DNR has issued the permits and approvals identified in the list provided by DNR.

Electric transmission system

The bill imposes various requirements regarding the electric transmission system. Under the bill, if a public utility or cooperative association has not, by June 30, 2000, transferred control over its electric transmission facilities to a federally approved independent system operator (ISO), the PSC may order such a utility or cooperative association to apply for federal approval to do any of the following: 1) transfer control over its transmission facilities to an ISO that has federal approval to operate in a region that includes this state; 2) transfer control over its transmission facilities to an ISO that has not yet received federal approval but is intended to operate in such a region; or 3) divest its interest in its transmission facilities to an independent transmission owner (ITO) that satisfies certain requirements. In addition, by June 30, 2000, the PSC is required to order public utilities to separately account for cost of retail electric transmission service and to take all of its retail transmission service from an ISO or ITO.

Subject to the certificate of public convenience and necessity requirements described above, the bill requires an ITO or, when ordered by an ISO, certain public utilities and cooperative associations to construct new electric transmission facilities if the ITO or ISO determines a need for such facilities. The bill also imposes certain requirements on an ITO's or ISO's operation of transmission facilities.

Also under the bill, the PSC must submit a study to the legislature by September 1, 1998, that identifies constraints on the regional electric transmission system that adversely affect the reliability of service provided to customers in this state. Based on the results of the study, the PSC may, no later than December 31, 2004, order public utilities to construct transmission facilities that are necessary to relieve constraints on the transmission system.

Wholesale merchant plants

In general, the bill prohibits an affiliate of a public utility from owning or operating a wholesale merchant plant unless the public utility has transferred control over its transmission facilities to an ISO or ITO and the PSC finds that the ownership or operation of the wholesale merchant plant by the affiliate will not have a substantially adverse anticompetitive effect on electricity markets. In addition, the PSC is required to review sales to public utilities of electricity that is generated from wholesale merchant plants owned or operated by affiliates. If the PSC finds that such a sale is not in the public interest, the PSC may take remedial action that includes disallowing the public utility's costs related to the sale in a rate-setting proceeding. Also, the bill prohibits any such sale of electricity on an uninterruptible basis that is for a period of 3 years or more. Finally, an affiliate that applies for a certificate of public convenience and necessity for a wholesale merchant plant is exempt from the requirement that the PSC determine that the plant satisfies the reasonable needs of the public.

Electric generating capacity

The bill requires nonmunicipal utilities that provide retail electric service in the area served by MAIN to construct an aggregate total of 50 megawatts of new electric capacity that is generated from renewable energy sources by December 31, 2000. Also, the bill requires certain of such utilities that have issued requests for proposals for additional electric generating capacity to enter into contracts for the capacity by July 31, 1998, and the bill shortens the regulatory approval deadlines that would otherwise apply to the additional capacity.

Other

The bill imposes various other requirements, including the following:

1. The bill requires the PSC to promulgate rules that require 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.

2. The bill requires the PSC to promulgate rules establishing standards for inspecting, maintaining and repairing certain electric generation, transmission and distribution facilities.

3. The bill makes certain changes to the calculation of nonutility assets in a public utility holding company system for purposes of determining whether the total amount of such assets complies with specified limits under current law.

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:

AB940, s. 1 Section 1. 30.025 (1) of the statutes is amended to read:

AB940,7,6 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.

AB940, s. 2 Section 2. 30.025 (4) of the statutes is amended to read:

AB940,7,11 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.

AB940, s. 3 Section 3. 30.44 (3m) (title) of the statutes is amended to read:

AB940,7,13 30.44 (3m) (title) Utility facilities ; high-voltage transmission lines.

AB940, s. 4 Section 4. 30.44 (3m) (a) of the statutes is amended to read:

AB940,7,17 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.

AB940, s. 5 Section 5. 30.44 (3m) (b) of the statutes is amended to read:

AB940,7,22 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.

AB940, s. 6 Section 6. 30.44 (3m) (d) of the statutes is amended to read:

AB940,8,2 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).

AB940, s. 7 Section 7. 30.45 (1r) of the statutes is amended to read:

AB940,8,6 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.

AB940, s. 8 Section 8. 32.02 (5) of the statutes is renumbered 32.02 (5) (b) and amended to read:

AB940,8,12 32.02 (5) (b) Any Wisconsin corporation engaged in the business of transmitting or furnishing heat, power or electric light for the public or any foreign transmission provider for the construction and location of its lines or for ponds or reservoirs or any dam, dam site, flowage rights or undeveloped water power.

AB940, s. 9 Section 9. 32.02 (5) (a) of the statutes is created to read:

AB940,8,15 32.02 (5) (a) "Foreign transmission provider" means a foreign corporation that satisfies each of the following:

AB940,8,19 1. The foreign corporation is an independent system operator, as defined in s. 196.485 (1) (d), or an independent transmission owner, as defined in s. 196.485 (1) (dm), that is approved by the applicable federal agency, as defined in s. 196.485 (1) (c).

AB940,8,21 2. The foreign corporation controls transmission facilities, as defined in s. 196.485 (1) (h), in this and another state.

AB940, s. 10 Section 10. 32.03 (5) (a) of the statutes is amended to read:

AB940,9,3 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.

AB940, s. 11 Section 11. 32.03 (5) (b) 1. of the statutes is amended to read:

AB940,9,5 32.03 (5) (b) 1. Such a limited interest does not run for more than 3 years; and

AB940, s. 12 Section 12. 32.03 (5) (b) 2. of the statutes is amended to read:

AB940,9,9 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.

AB940, s. 13 Section 13. 32.03 (5) (b) 3. of the statutes is repealed.

AB940, s. 14 Section 14. 32.06 (7) of the statutes is amended to read:

AB940,9,25 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.

AB940, s. 15 Section 15. 32.07 (1) of the statutes is amended to read:

AB940,10,20 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.

AB940, s. 16 Section 16. 32.07 (1m) of the statutes is repealed.

AB940, s. 17 Section 17. 32.075 (3) (a) 2. of the statutes is amended to read:

AB940,11,3 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.

AB940, s. 18 Section 18. 32.09 (2m) of the statutes is amended to read:

AB940,11,10 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.

AB940, s. 19 Section 19. 66.073 (10) (a) of the statutes is renumbered 66.073 (10).

AB940, s. 20 Section 20. 66.073 (10) (b) of the statutes is repealed.

AB940, s. 21 Section 21. 86.16 (1) of the statutes is amended to read:

AB940,11,21 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.

AB940, s. 22 Section 22. 182.017 (1) of the statutes is amended to read:

AB940,12,13 182.017 (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 an independent system operator, as defined in s. 196.485 (1) (d), an independent transmission owner, as defined in s. 196.485 (1) (dm), or a 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.

AB940, s. 23 Section 23. 196.03 (5m) of the statutes is created to read:

AB940,12,20 196.03 (5m) The commission shall promulgate rules establishing requirements and procedures for the commission, in setting rates for retail electric service, to 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.

AB940, s. 24 Section 24. 196.24 (3) of the statutes is amended to read:

AB940,13,7 196.24 (3) The commission may conduct any number of investigations contemporaneously through different agents, and may delegate to any agent the authority to take testimony bearing upon any investigation or at any hearing. The decision of the commission shall comply with s. 227.46 and shall be based upon its records and upon the evidence before it, except that, notwithstanding s. 227.46 (4), a decision maker may hear a case or read or review the record of a case if the record includes a synopsis or summary of the testimony and other evidence presented at the hearing that is prepared by the commission staff. Parties shall have an opportunity to demonstrate to a decision maker that a synopsis or summary prepared under this subsection is not sufficiently complete or accurate to fairly reflect the relevant and material testimony or other evidence presented at a hearing.

AB940, s. 25 Section 25. 196.377 (title) of the statutes is created to read:

AB940,13,9 196.377 (title) Renewable energy sources.

AB940, s. 26 Section 26. 196.377 of the statutes is renumbered 196.377 (1).

AB940, s. 27 Section 27. 196.377 (2) of the statutes is created to read:

AB940,13,12 196.377 (2) Eastern Wisconsin utilities. (a) In this subsection:

AB940,13,16 1. "Eastern Wisconsin utility" means a public utility, other than a municipal utility that, on the effective date of this subdivision .... [revisor inserts date], provided retail electric service to customers in the geographic area of the state that was served by the reliability council on that date.

AB940,13,17 2. "Municipality" means a city, town or village.

AB940,13,19 3. "Municipal utility" means a public utility that is a municipality or that is wholly owned or operated by a municipality.

AB940,13,21 4. "Reliability council" means the Mid-America Interconnected Network, Inc., reliability council of the North American Electric Reliability Council.

AB940,14,4 (b) Except as provided in par. (d), no later than December 31, 2000, each eastern Wisconsin utility shall construct or procure, on a competitive basis, the construction of an aggregate total of 50 megawatts of new electric capacity in this state that is, to the satisfaction of the commission, generated from renewable energy sources. Each eastern Wisconsin utility shall construct or procure the construction of a share of the aggregate total required under this paragraph that corresponds to the utility's share, as determined by the commission, of the aggregate demand for electricity that is supplied by the utilities in the area served by the reliability council.

AB940,14,6 (c) An eastern Wisconsin utility may procure the construction required under par. (a) by issuing requests for proposals no later than September 30, 1998.

AB940,14,10 (d) The commission may allow an eastern Wisconsin utility to comply with the requirements under par. (b) by a date that is later than December 31, 2000, if the commission determines that the later date is necessary due to circumstances beyond the utility's control.

AB940,14,14 (e) Any new electric capacity that is generated from a wind power project for which an eastern Wisconsin utility has issued a request for proposals before the effective date of this paragraph .... [revisor inserts date], may be counted in determining whether the utility has satisfied the requirements under par. (b).

AB940,14,17 (f) The commission shall allow an eastern Wisconsin utility to recover in its retail electric rates any costs that are prudently incurred by the utility in complying with the requirements under par. (b).

AB940, s. 28 Section 28. 196.39 of the statutes is renumbered 196.39 (1) and amended to read:

AB940,14,24 196.39 (1) The commission at any time, on its own motion or upon motion of an interested party, and upon notice to the public utility and after opportunity to be heard, may rescind, alter or amend any order fixing rates, tolls, charges or schedules, or any other order made by the commission, and may reopen any case following the issuance of an order in the case, for any reason.

AB940,15,2 (3) Any order under sub. (1) rescinding, altering, amending or reopening a prior order shall have the same effect as an original order.

AB940,15,6 (4) Within 30 days after service of an order under sub. (1), the commission may correct an error or omission in the order related to transcription, typing or calculation without hearing if the correction does not alter the intended effect of the order.

AB940, s. 29 Section 29. 196.39 (2) of the statutes is created to read:

AB940,15,11 196.39 (2) An interested party may request the reopening of any case, but only after petitioning for a rehearing of the case under s. 227.49. The commission may reopen a case upon the request of an interested party only after the conclusion of any proceedings under s. 227.49.

AB940, s. 30 Section 30. 196.485 of the statutes is created to read:

AB940,15,13 196.485 Independent system operator. (1) Definitions. In this section:

AB940,15,14 (a) "Affiliated interest of a person" means any of the following:

AB940,15,16 1. Any person owning or holding directly or indirectly 5% or more of the voting securities of the person.

AB940,15,18 2. Any person in any chain of successive ownership of 5% or more of voting securities of the person.

AB940,15,21 3. Any corporation 5% or more of whose voting securities is owned by any person owning 5% or more of the voting securities of the person or by any person in any chain of successive ownership of 5% or more of the voting securities of the person.