AB389,18,1716 a. Pay 50% of the public benefits fees that it charges under par. (a) to the
17department.
AB389,18,1918 b. Spend no less than 50% of the public benefits fees that it charges under par.
19(a) on programs for low-income assistance.
AB389,18,2320 3. If the municipal utility or retail electric cooperative elects not to contribute
21to any of the programs established under sub. (2) (a) or (b) 1., the municipal utility
22or retail electric cooperative shall, in each fiscal year of the 3-year period for which
23it elects not to contribute under par. (b) 1. or 2., do all of the following:
AB389,18,2524 a. Spend no less than 50% of the public benefits fees that it charges under par.
25(a) on programs for low-income assistance.
AB389,19,2
1b. Spend no less than 50% of the public benefits fees that it charges under par.
2(a) on energy conservation programs.
AB389,19,63 (e) Wholesale supplier credit. If a wholesale supplier has established a program
4for low-income assistance or an energy conservation program, a municipal utility or
5retail electric cooperative that is a customer or member of the wholesale supplier
6may do any of the following:
AB389,19,117 1. Include an amount equal to the product of the municipal utility's or retail
8electric cooperative's wholesale supply percentage and the amount that the
9wholesale supplier has spent on low-income assistance in a fiscal year in calculating
10the amount that the municipal utility or retail electric cooperative has spent on
11low-income assistance in that fiscal year under par. (d) 2. b. or 3. a.
AB389,19,1712 2. Include an amount equal to the product of the municipal utility's or retail
13electric cooperative's wholesale supply percentage and the amount that the
14wholesale supplier has spent on energy conservation programs or customer
15applications of renewable resources in a fiscal year in calculating the amount that
16the municipal utility or retail electric cooperative has spent on energy conservation
17programs under par. (d) 1. b. or 3. b.
AB389,19,2118 (f) Joint programs. Municipal utilities or retail electric cooperatives may
19establish joint commitment to community programs, except that each municipal
20utility or retail electric cooperative that participates in a joint program is required
21to comply with the spending requirements under par. (d).
AB389,19,2522 (g) Reports. 1. For each fiscal year, each municipal utility and retail electric
23cooperative that does not pay 100% of the public benefits fee that it charges under
24par. (a) to the department under par. (c) shall file a report with the department that
25describes each of the following:
AB389,20,4
1a. An accounting of public benefits fees charged to customers or members under
2par. (a) in the fiscal year and expenditures on commitment to community programs
3under par. (d), including any amounts included in the municipal utility's or retail
4electric cooperative's calculations under par. (e).
AB389,20,65 b. A description of commitment to community programs established by the
6municipal utility or retail electric cooperative in the fiscal year.
AB389,20,87 2. The department shall maintain reports filed under subd. 1. for at least 6
8years.
AB389, s. 3 9Section 3. 16.969 of the statutes is created to read:
AB389,20,11 1016.969 Fees for certain high-voltage transmission lines. (1) In this
11section:
AB389,20,1212 (a) "Commission" means the public service commission.
AB389,20,1513 (b) "High-voltage transmission line" means a high-voltage transmission line,
14as defined in s. 196.491 (1) (f), that is designed for operation at a nominal voltage of
15345 kilovolts or more.
AB389,20,18 16(2) The department shall promulgate rules that require a person who is issued
17a certificate of public convenience and necessity by the commission under s. 196.491
18(3) for a high-voltage transmission line to pay the department the following fees:
AB389,20,2119 (a) An annual impact fee in an amount equal to 0.3% of the cost of the
20high-voltage transmission line, as determined by the commission under s. 196.491
21(3) (gm).
AB389,20,2422 (b) A one-time environmental impact fee in amount equal to 5% of the cost of
23the high-voltage transmission line, as determined by the commission under s.
24196.491 (3) (gm).
AB389,21,5
1(3) (a) The department shall distribute the fees that are paid by a person under
2the rules promulgated under sub. (2) (a) to each town, village and city that is
3identified by the commission under s. 196.491 (3) (gm) in proportion to the amount
4of investment that is allocated by the commission under s. 196.491 (3) (gm) to each
5such town, village and city.
AB389,21,76 (b) The fee that is paid by a person under the rules promulgated under sub. (2)
7(b) shall be distributed as follows:
AB389,21,108 1. The department shall pay 50% of the fee to each county that is identified by
9the commission under s. 196.491 (3) (gm) in proportion to the amount of investment
10that is allocated by the commission under s. 196.491 (3) (gm) to each such county.
AB389,21,1411 2. The department shall pay 50% of the fee to each town, village and city that
12is identified by the commission under s. 196.491 (3) (gm) in proportion to the amount
13of investment that is allocated by the commission under s. 196.491 (3) (gm) to each
14such town, village and city.
AB389,21,17 15(4) A county, town, village or city that receives a distribution under sub. (3) (b)
16may use the distribution only for park, conservancy, wetland or other similar
17environmental programs.
AB389, s. 4 18Section 4. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
19the following amounts for the purposes indicated: - See PDF for table PDF
AB389, s. 5 20Section 5. 20.505 (1) (ge) of the statutes is created to read:
AB389,22,3
120.505 (1) (ge) High-voltage transmission line annual impact fee distributions.
2All moneys received from the payment of fees under the rules promulgated under s.
316.969 (2) (a) for distributions to to towns, villages and cities under s. 16.969 (3) (a).
AB389, s. 6 4Section 6. 20.505 (1) (gs) of the statutes is created to read:
AB389,22,85 20.505 (1) (gs) High-voltage transmission line environmental impact fee
6distributions.
All moneys received from the payment of fees under the rules
7promulgated under s. 16.969 (2) (b) for distributions to counties, towns, villages and
8cities under s. 16.969 (3) (b).
AB389, s. 7 9Section 7. 20.505 (10) of the statutes is created to read:
AB389,22,1210 20.505 (10) Utility public benefits. (q) General program operations. From
11the utility public benefits fund, the amounts in the schedule for general program
12operations.
AB389,22,1413 (r) Low-income assistance grants. From the utility public benefits fund, a sum
14sufficient for low-income assistance grants under s. 16.957 (2) (a).
AB389,22,1715 (s) Energy conservation and efficiency and renewable resource grants. From the
16utility public benefits fund, a sum sufficient for energy conservation and efficiency
17and renewable resource grants under s. 16.957 (2) (b) 1.
AB389, s. 8 18Section 8. 25.17 (1) (xm) of the statutes is created to read:
AB389,22,1919 25.17 (1) (xm) Utility public benefits fund (s. 25.96);
AB389, s. 9 20Section 9. 25.96 of the statutes is created to read:
AB389,22,25 2125.96 Utility public benefits fund. There is established a separate
22nonlapsible trust fund designated as the utility public benefits fund, consisting of
23deposits by the public service commission under s. 196.374 (3), public benefits fees
24received under s. 16.957 (4) (a) and (5) (c) and (d) and contributions received under
25s. 16.957 (2) (c) 4. and (d) 2.
AB389, s. 10
1Section 10. 76.28 (1) (d) of the statutes is amended to read:
AB389,23,252 76.28 (1) (d) "Gross revenues" for a light, heat and power company other than
3a qualified wholesale electric company or a transmission company means total
4operating revenues as reported to the public service commission except revenues for
5interdepartmental sales and for interdepartmental rents as reported to the public
6service commission and deductions from the sales and use tax under s. 77.61 (4),
7except that the company may subtract from revenues either the actual cost of power
8purchased for resale, as reported to the public service commission, by a light, heat
9and power company, except a municipal light, heat and power company, that
10purchases under federal or state approved wholesale rates more than 50% of its
11electric power from a person other than an affiliated interest, as defined in s. 196.52
12(1), if the revenue from that purchased electric power is included in the seller's gross
13revenues or the following percentages of the actual cost of power purchased for
14resale, as reported to the public service commission, by a light, heat and power
15company, except a municipal light, heat and power company that purchases more
16than 90% of its power and that has less than $50,000,000 of gross revenues: 10% for
17the fee assessed on May 1, 1988, 30% for the fee assessed on May 1, 1989, and 50%
18for the fee assessed on May 1, 1990, and thereafter. For a qualified wholesale electric
19company, "gross revenues" means total business revenues from those businesses
20included under par. (e) 1. to 4. For a transmission company, "gross revenues" means
21total operating revenues as reported to the public service commission, except
22revenues for transmission service that is provided to a public utility that is subject
23to the license fee under sub. (2) (d), to a public utility, as defined in s. 196.01 (5), or
24to a cooperative association organized under ch. 185 for the purpose of providing
25electricity to its members only.
AB389, s. 11
1Section 11. 76.28 (1) (e) (intro.) of the statutes is amended to read:
AB389,24,102 76.28 (1) (e) (intro.) "Light, heat and power companies" means any person,
3association, company or corporation, including corporations described in s. 66.069 (2)
4and including, qualified wholesale electric companies and transmission companies
5and except only business enterprises carried on exclusively either for the private use
6of the person, association, company or corporation engaged in them, or for the private
7use of a person, association, company or corporation owning a majority of all
8outstanding capital stock or who control the operation of business enterprises and
9except electric cooperatives taxed under s. 76.48 that engage in any of the following
10businesses:
AB389, s. 12 11Section 12. 76.28 (1) (e) 5. of the statutes is created to read:
AB389,24,1212 76.28 (1) (e) 5. Transmitting electric current for light, heat or power.
AB389, s. 13 13Section 13. 76.28 (1) (j) of the statutes is created to read:
AB389,24,1514 76.28 (1) (j) "Transmission company" has the meaning given in s. 196.485 (1)
15(ge).
AB389, s. 14 16Section 14. 76.28 (2) (c) (intro.) of the statutes is amended to read:
AB389,24,1917 76.28 (2) (c) (intro.) For Except as provided under par. (e), for private light, heat
18and power companies for 1986 and thereafter, an amount equal to the apportionment
19factor multiplied by the sum of:
AB389, s. 15 20Section 15. 76.28 (2) (d) of the statutes is amended to read:
AB389,24,2421 76.28 (2) (d) For Except as provided under par. (e), for municipal light, heat and
22power companies, an amount equal to the gross revenues, except gross revenues from
23operations within the municipality that operates the company, multiplied by the
24rates under par. (b) or (c).
AB389, s. 16 25Section 16. 76.28 (2) (e) of the statutes is created to read:
AB389,25,2
176.28 (2) (e) For transmission companies, an amount equal to the gross
2revenues multiplied by the rates under par. (c).
AB389, s. 17 3Section 17. 196.025 of the statutes is renumbered 196.025 (1).
AB389, s. 18 4Section 18. 196.025 (2) of the statutes is created to read:
AB389,25,85 196.025 (2) The commission shall promulgate rules establishing requirements
6and procedures for the commission to carry out the duties under s. 1.11. Rules
7promulgated under this subsection shall include requirements and procedures for
8each of the following:
AB389,25,109 (a) Standards for determining the necessity of preparing an environmental
10impact statement.
AB389,25,1311 (b) Adequate opportunities for interested persons to be heard on environmental
12impact statements, including adequate time for the preparation and submission of
13comments.
AB389,25,1614 (c) Deadlines that allow thorough review of environmental issues without
15imposing unnecessary delays in addressing the need for additional electric
16transmission capacity in this state.
AB389, s. 19 17Section 19. 196.025 (3) of the statutes is created to read:
AB389,26,218 196.025 (3) The commission shall promulgate rules establishing requirements
19and procedures for electric utilities, as defined under s. 196.491 (1) (d), to file reports
20with the commission, on a frequency that the commission determines is reasonably
21necessary, on their current reliability status, including the status of operating and
22planning reserves, available transmission capacity and outages of major operational
23units and transmission lines. A report filed under the rules promulgated under this
24subsection is subject to inspection and copying under s. 19.35 (1), except that the
25commission may withhold the report from inspection and copying for a period of time

1that the commission determines is reasonably necessary to prevent an adverse
2impact on the supply or price of energy in this state.
AB389, s. 20 3Section 20. 196.025 (4) of the statutes is created to read:
AB389,26,74 196.025 (4) (a) In consultation with the department of administration and the
5department of revenue, the commission shall study the establishment of a program
6for providing incentives for the development of high-efficiency, small-scale electric
7generating facilities in this state that do either of the following:
AB389,26,98 1. Provide benefits in the form of support for electric distribution or
9transmission systems, power quality or environmental performance.
AB389,26,1210 2. Employ technologies such as combined heat and power systems, fuel cells,
11mircroturbines or photovoltalic systems that may be situated in, on or next to
12buildings or other electric load centers.
AB389,26,1613 (b) No later than January 1, 2001, the commission shall submit a report of its
14findings and recommendations under par. (a) to the chief clerk of each house of the
15legislature for distribution to the appropriate standing committees under s. 13.172
16(3).
AB389, s. 21 17Section 21. 196.025 (5) of the statutes is created to read:
AB389,26,2318 196.025 (5) (a) The commission shall contract with an expert consultant in
19economics to conduct a study on the potential for horizontal market power, including
20the horizontal market power of electric generators, to frustrate the creation of an
21effectively competitive retail electricity market in this state and to make
22recommendations on measures to eliminate such market power on a sustainable
23basis. The study shall include each of the following:
AB389,26,2524 1. An assessment of the effect of each recommendation on public utility workers
25and shareholders and on rates for each class of public utility customers.
AB389,27,2
12. An evaluation of the impact of transmission constraints on the market power
2of electric generators in local areas.
AB389,27,53 (b) No later than January 1, 2001, the commission shall submit a report of the
4results of the study under par. (a) to the chief clerk of each house of the legislature
5for distribution to the appropriate standing committees under s. 13.172 (3).
AB389, s. 22 6Section 22. 196.192 of the statutes is created to read:
AB389,27,9 7196.192 Market-based compensation, rates and contracts. (1) In this
8section, "electric public utility" means a public utility whose purpose is the
9generation, distribution and sale of electric energy.
AB389,27,11 10(2) No later than March 1, 2000, each investor-owned electric public utility
11shall do each of the following:
AB389,27,1412 (a) File with the commission rates that result in customers receiving
13market-based compensation for voluntary interruptions of firm load during peak
14periods of electric use.
AB389,27,1815 (b) File with the commission market-based pricing options and options for
16individual contracts that allow a retail customer, through service from its existing
17public utility, to receive market benefits and subject itself to market risks for the
18customer's purchases of capacity or energy.
AB389,27,23 19(3) (a) The commission shall approve market-based rates that are consistent
20with the options specified in sub. (2), except that the commission may not approve
21a market-based rate unless the commission determines that the rate will not harm
22shareholders of the investor-owned electric public utility or customers who are not
23subject to the rate.
AB389,28,3
1(b) Nothing in s. 196.20, 196.21, 196.22, 196.37, 196.60 or 196.604 prohibits the
2commission from approving a filing under sub. (2) or approving market-based rates
3under par. (a).
AB389,28,7 4(4) Subject to any approval of the commission that is necessary, an electric
5public utility that is not an investor-owned electric public utility may implement
6market-based rates approved under sub. (3) (a) or implement the options in filings
7under sub. (2) that are approved by the commission.
AB389, s. 23 8Section 23. 196.31 (1) (intro.) of the statutes is amended to read:
AB389,28,129 196.31 (1) (intro.) In any proceeding before the commission, the commission
10may shall compensate any participant in the proceeding who is not a public utility,
11for some or all of the reasonable costs of participation in the proceeding if the
12commission finds that:
AB389, s. 24 13Section 24. 196.31 (1) (a) of the statutes is amended to read:
AB389,28,1714 196.31 (1) (a) The participation is necessary to provide for the record an
15adequate presentation of a significant position in which the participant has a
16substantial interest, and that an adequate presentation would not be possible occur
17without a grant of compensation; or
AB389, s. 25 18Section 25. 196.374 of the statutes is repealed and recreated to read:
AB389,28,20 19196.374 Low-income assistance, energy efficiency and other
20programs.
(1) In this section:
AB389,28,2121 (a) "Department" means the department of administration.
AB389,28,2222 (b) "Fund" means the utility public benefits fund.
AB389,29,223 (c) "Utility" means a Class A gas or electric utility, as defined by the
24commission, but does not include a municipal utility, as defined in s. 16.957 (1) (q),

1a municipal electric company, as defined in s. 66.073 (3) (d), or a cooperative
2association organized under ch. 185.
AB389,29,6 3(2) The commission shall determine the amount that each utility spent in 1998
4on programs for low-income assistance, including writing off uncollectibles and
5arrearages, low-income weatherization, energy conservation and efficiency,
6environmental research and development, and renewable resources.
AB389,29,16 7(3) In 1999, 2000 and 2001, the commission shall require each utility to spend
8a decreasing portion of the amount determined under sub. (2) on programs specified
9in sub. (2) and contribute the remaining portion of the amount to the commission for
10deposit in the fund. In each year after 2001, each utility shall contribute the entire
11amount determined under sub. (2) to the commission for deposit in the fund. The
12commission shall ensure in rate-making orders that a utility recovers from its
13ratepayers the amounts spent on programs or contributed to the fund under this
14subsection. The commission shall allow each utility the option of continuing to use,
15until January 1, 2001, the moneys that it has recovered under s. 196.374 (3), 1997
16stats., to administer the programs that it has funded under s. 196.374 (1), 1997 stats.
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