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.
AB389,29,1917 The commission may allow each utility to spend additional moneys on the programs
18specified in sub. (2) if the utility otherwise complies with the requirements of this
19section and s. 16.957 (4).
AB389,29,24 20(4) If the department notifies the commission under s. 16.957 (2) (b) 2. that the
21department has reduced funding for energy conservation and efficiency and
22renewable resource programs, the commission shall reduce the amount that a utility
23is required to spend on programs or contribute to the fund under sub. (3) by the
24percentage by which the department has reduced the funding.
AB389, s. 26 25Section 26. 196.378 of the statutes is created to read:
AB389,30,1
1196.378 Renewable resources. (1) Definitions. In this section:
AB389,30,72 (a) "Biomass" means a resource that derives energy from wood or plant
3material or residue, biological waste, crops grown for use as a resource or landfill
4gases. "Biomass" does not include garbage, as defined in s. 289.01 (9), or
5nonvegetation-based industrial, commercial or household waste, except that
6"biomass" includes refuse-derived fuel used for a renewable facility that was in
7service in this state before January 1, 1998.
AB389,30,98 (b) "Conventional resource" means a resource that derives energy from coal, oil,
9nuclear power or natural gas, except for natural gas used in a fuel cell.
AB389,30,1010 (bm) "Department" means the department of administration.
AB389,30,1111 (c) "Electric provider" means an electric utility or retail electric cooperative.
AB389,30,1512 (d) "Electric utility" means a public utility that sells electricity at retail. For
13purposes of this paragraph, a public utility is not considered to sell electricity at
14retail solely on the basis of its ownership or operation of a retail electric distribution
15system.
AB389,30,2016 (e) "Excludable renewable capacity" means the portion of an electric provider's
17total renewable capacity that is supplied from renewable facilities that were placed
18in service before January 1, 1998, and that, before January 1, 1998, derived
19electricity from hydroelectric power, even if the output of the renewable facilities is
20used to satisfy requirements under federal law.
AB389,31,221 (f) "Nonsystem renewable energy" means the amount of electricity that an
22electric provider sells to its retail customers or members and that is supplied or
23allocated under executed wholesale purchase contracts from renewable facilities
24that are not owned or operated by the electric provider. "Nonsystem renewable

1energy" does not include any electricity that is not used to satisfy the electric
2provider's retail load obligations.
AB389,31,83 (g) "Renewable facility" means an installed and operational electric generating
4facility in which energy is derived from a renewable resource. "Renewable facility"
5includes a facility the installation or operation of which is required under federal law,
6but does not include a facility the installation or operation of which is required under
7the laws of another state even if the installation or operation of the facility is also
8required under federal law.
AB389,31,99 (h) "Renewable resource" means any of the following:
AB389,31,1010 1. A resource that derives electricity from any of the following:
AB389,31,1111 a. A fuel cell that uses, as determined by the commission, a renewable fuel.
AB389,31,1212 b. Tidal or wave action.
AB389,31,1313 c. Solar thermal electric or photovoltaic energy.
AB389,31,1414 d. Wind power.
AB389,31,1515 e. Geothermal technology.
AB389,31,1616 g. Biomass.
AB389,31,1817 1m. A resource with a capacity of less than 60 megawatts that derives
18electricity from hydroelectric power.
AB389,31,2019 2. Any other resource, except a conventional resource, that the commission
20designates as a renewable resource in rules promulgated under sub. (4).
AB389,31,2221 (i) "Renewable resource credit" means a credit calculated in accordance with
22rules promulgated under sub. (3) (a).
AB389,31,2323 (j) "Resource" means a source of electric power generation.
AB389,32,324 (k) "Retail electric cooperative" means a cooperative association organized
25under ch. 185 that sells electricity at retail to its members only. For purposes of this

1paragraph, a cooperative association is not considered to sell electricity at retail
2solely on the basis of its ownership or operation of a retail electric distribution
3system.
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