AB389: Bill Text

AB389,22,19 25.17 (1) (xm) Utility public benefits fund (s. 25.96);

AB389, s. 9 Section 9. 25.96 of the statutes is created to read:

AB389,22,25 25.96 Utility public benefits fund. There is established a separate nonlapsible trust fund designated as the utility public benefits fund, consisting of deposits by the public service commission under s. 196.374 (3), public benefits fees received under s. 16.957 (4) (a) and (5) (c) and (d) and contributions received under s. 16.957 (2) (c) 4. and (d) 2.

AB389, s. 10 Section 10. 76.28 (1) (d) of the statutes is amended to read:

AB389,23,25 76.28 (1) (d) "Gross revenues" for a light, heat and power company other than a qualified wholesale electric company or a transmission company means total operating revenues as reported to the public service commission except revenues for interdepartmental sales and for interdepartmental rents as reported to the public service commission and deductions from the sales and use tax under s. 77.61 (4), except that the company may subtract from revenues either the actual cost of power purchased for resale, as reported to the public service commission, by a light, heat and power company, except a municipal light, heat and power company, that purchases under federal or state approved wholesale rates more than 50% of its electric power from a person other than an affiliated interest, as defined in s. 196.52 (1), if the revenue from that purchased electric power is included in the seller's gross revenues or the following percentages of the actual cost of power purchased for resale, as reported to the public service commission, by a light, heat and power company, except a municipal light, heat and power company that purchases more than 90% of its power and that has less than $50,000,000 of gross revenues: 10% for the fee assessed on May 1, 1988, 30% for the fee assessed on May 1, 1989, and 50% for the fee assessed on May 1, 1990, and thereafter. For a qualified wholesale electric company, "gross revenues" means total business revenues from those businesses included under par. (e) 1. to 4. For a transmission company, "gross revenues" means total operating revenues as reported to the public service commission, except revenues for transmission service that is provided to a public utility that is subject to the license fee under sub. (2) (d), to a public utility, as defined in s. 196.01 (5), or to a cooperative association organized under ch. 185 for the purpose of providing electricity to its members only.

AB389, s. 11 Section 11. 76.28 (1) (e) (intro.) of the statutes is amended to read:

AB389,24,10 76.28 (1) (e) (intro.) "Light, heat and power companies" means any person, association, company or corporation, including corporations described in s. 66.069 (2) and including, qualified wholesale electric companies and transmission companies and except only business enterprises carried on exclusively either for the private use of the person, association, company or corporation engaged in them, or for the private use of a person, association, company or corporation owning a majority of all outstanding capital stock or who control the operation of business enterprises and except electric cooperatives taxed under s. 76.48 that engage in any of the following businesses:

AB389, s. 12 Section 12. 76.28 (1) (e) 5. of the statutes is created to read:

AB389,24,12 76.28 (1) (e) 5. Transmitting electric current for light, heat or power.

AB389, s. 13 Section 13. 76.28 (1) (j) of the statutes is created to read:

AB389,24,15 76.28 (1) (j) "Transmission company" has the meaning given in s. 196.485 (1) (ge).

AB389, s. 14 Section 14. 76.28 (2) (c) (intro.) of the statutes is amended to read:

AB389,24,19 76.28 (2) (c) (intro.) For Except as provided under par. (e), for private light, heat and power companies for 1986 and thereafter, an amount equal to the apportionment factor multiplied by the sum of:

AB389, s. 15 Section 15. 76.28 (2) (d) of the statutes is amended to read:

AB389,24,24 76.28 (2) (d) For Except as provided under par. (e), for municipal light, heat and power companies, an amount equal to the gross revenues, except gross revenues from operations within the municipality that operates the company, multiplied by the rates under par. (b) or (c).

AB389, s. 16 Section 16. 76.28 (2) (e) of the statutes is created to read:

AB389,25,2 76.28 (2) (e) For transmission companies, an amount equal to the gross revenues multiplied by the rates under par. (c).

AB389, s. 17 Section 17. 196.025 of the statutes is renumbered 196.025 (1).

AB389, s. 18 Section 18. 196.025 (2) of the statutes is created to read:

AB389,25,8 196.025 (2) The commission shall promulgate rules establishing requirements and procedures for the commission to carry out the duties under s. 1.11. Rules promulgated under this subsection shall include requirements and procedures for each of the following:

AB389,25,10 (a) Standards for determining the necessity of preparing an environmental impact statement.

AB389,25,13 (b) Adequate opportunities for interested persons to be heard on environmental impact statements, including adequate time for the preparation and submission of comments.

AB389,25,16 (c) Deadlines that allow thorough review of environmental issues without imposing unnecessary delays in addressing the need for additional electric transmission capacity in this state.

AB389, s. 19 Section 19. 196.025 (3) of the statutes is created to read:

AB389,26,2 196.025 (3) The commission shall promulgate rules establishing requirements and procedures for electric utilities, as defined under s. 196.491 (1) (d), to file reports with the commission, on a frequency that the commission determines is reasonably necessary, on their current reliability status, including the status of operating and planning reserves, available transmission capacity and outages of major operational units and transmission lines. A report filed under the rules promulgated under this subsection is subject to inspection and copying under s. 19.35 (1), except that the commission may withhold the report from inspection and copying for a period of time that the commission determines is reasonably necessary to prevent an adverse impact on the supply or price of energy in this state.

AB389, s. 20 Section 20. 196.025 (4) of the statutes is created to read:

AB389,26,7 196.025 (4) (a) In consultation with the department of administration and the department of revenue, the commission shall study the establishment of a program for providing incentives for the development of high-efficiency, small-scale electric generating facilities in this state that do either of the following:

AB389,26,9 1. Provide benefits in the form of support for electric distribution or transmission systems, power quality or environmental performance.

AB389,26,12 2. Employ technologies such as combined heat and power systems, fuel cells, mircroturbines or photovoltalic systems that may be situated in, on or next to buildings or other electric load centers.

AB389,26,16 (b) No later than January 1, 2001, the commission shall submit a report of its findings and recommendations under par. (a) to the chief clerk of each house of the legislature for distribution to the appropriate standing committees under s. 13.172 (3).

AB389, s. 21 Section 21. 196.025 (5) of the statutes is created to read:

AB389,26,23 196.025 (5) (a) The commission shall contract with an expert consultant in economics to conduct a study on the potential for horizontal market power, including the horizontal market power of electric generators, to frustrate the creation of an effectively competitive retail electricity market in this state and to make recommendations on measures to eliminate such market power on a sustainable basis. The study shall include each of the following:

AB389,26,25 1. An assessment of the effect of each recommendation on public utility workers and shareholders and on rates for each class of public utility customers.

AB389,27,2 2. An evaluation of the impact of transmission constraints on the market power of electric generators in local areas.

AB389,27,5 (b) No later than January 1, 2001, the commission shall submit a report of the results of the study under par. (a) to the chief clerk of each house of the legislature for distribution to the appropriate standing committees under s. 13.172 (3).

AB389, s. 22 Section 22. 196.192 of the statutes is created to read:

AB389,27,9 196.192 Market-based compensation, rates and contracts. (1) In this section, "electric public utility" means a public utility whose purpose is the generation, distribution and sale of electric energy.

AB389,27,11 (2) No later than March 1, 2000, each investor-owned electric public utility shall do each of the following:

AB389,27,14 (a) File with the commission rates that result in customers receiving market-based compensation for voluntary interruptions of firm load during peak periods of electric use.

AB389,27,18 (b) File with the commission market-based pricing options and options for individual contracts that allow a retail customer, through service from its existing public utility, to receive market benefits and subject itself to market risks for the customer's purchases of capacity or energy.

AB389,27,23 (3) (a) The commission shall approve market-based rates that are consistent with the options specified in sub. (2), except that the commission may not approve a market-based rate unless the commission determines that the rate will not harm shareholders of the investor-owned electric public utility or customers who are not subject to the rate.

AB389,28,3 (b) Nothing in s. 196.20, 196.21, 196.22, 196.37, 196.60 or 196.604 prohibits the commission from approving a filing under sub. (2) or approving market-based rates under par. (a).

AB389,28,7 (4) Subject to any approval of the commission that is necessary, an electric public utility that is not an investor-owned electric public utility may implement market-based rates approved under sub. (3) (a) or implement the options in filings under sub. (2) that are approved by the commission.

AB389, s. 23 Section 23. 196.31 (1) (intro.) of the statutes is amended to read:

AB389,28,12 196.31 (1) (intro.) In any proceeding before the commission, the commission may shall compensate any participant in the proceeding who is not a public utility, for some or all of the reasonable costs of participation in the proceeding if the commission finds that:

AB389, s. 24 Section 24. 196.31 (1) (a) of the statutes is amended to read:

AB389,28,17 196.31 (1) (a) The participation is necessary to provide for the record an adequate presentation of a significant position in which the participant has a substantial interest, and that an adequate presentation would not be possible occur without a grant of compensation; or

AB389, s. 25 Section 25. 196.374 of the statutes is repealed and recreated to read:

AB389,28,20 196.374 Low-income assistance, energy efficiency and other programs. (1) In this section:

AB389,28,21 (a) "Department" means the department of administration.

AB389,28,22 (b) "Fund" means the utility public benefits fund.

AB389,29,2 (c) "Utility" means a Class A gas or electric utility, as defined by the commission, but does not include a municipal utility, as defined in s. 16.957 (1) (q), a municipal electric company, as defined in s. 66.073 (3) (d), or a cooperative association organized under ch. 185.

AB389,29,6 (2) The commission shall determine the amount that each utility spent in 1998 on programs for low-income assistance, including writing off uncollectibles and arrearages, low-income weatherization, energy conservation and efficiency, environmental research and development, and renewable resources.

AB389,29,16 (3) In 1999, 2000 and 2001, the commission shall require each utility to spend a decreasing portion of the amount determined under sub. (2) on programs specified in sub. (2) and contribute the remaining portion of the amount to the commission for deposit in the fund. In each year after 2001, each utility shall contribute the entire amount determined under sub. (2) to the commission for deposit in the fund. The commission shall ensure in rate-making orders that a utility recovers from its ratepayers the amounts spent on programs or contributed to the fund under this subsection. The commission shall allow each utility the option of continuing to use, until January 1, 2001, the moneys that it has recovered under s. 196.374 (3), 1997 stats., to administer the programs that it has funded under s. 196.374 (1), 1997 stats.

AB389,29,19 The commission may allow each utility to spend additional moneys on the programs specified in sub. (2) if the utility otherwise complies with the requirements of this section and s. 16.957 (4).

AB389,29,24 (4) If the department notifies the commission under s. 16.957 (2) (b) 2. that the department has reduced funding for energy conservation and efficiency and renewable resource programs, the commission shall reduce the amount that a utility is required to spend on programs or contribute to the fund under sub. (3) by the percentage by which the department has reduced the funding.

AB389, s. 26 Section 26. 196.378 of the statutes is created to read:

AB389,30,1 196.378 Renewable resources. (1) Definitions. In this section:

AB389,30,7 (a) "Biomass" means a resource that derives energy from wood or plant material or residue, biological waste, crops grown for use as a resource or landfill gases. "Biomass" does not include garbage, as defined in s. 289.01 (9), or nonvegetation-based industrial, commercial or household waste, except that "biomass" includes refuse-derived fuel used for a renewable facility that was in service in this state before January 1, 1998.

AB389,30,9 (b) "Conventional resource" means a resource that derives energy from coal, oil, nuclear power or natural gas, except for natural gas used in a fuel cell.

AB389,30,10 (bm) "Department" means the department of administration.

AB389,30,11 (c) "Electric provider" means an electric utility or retail electric cooperative.

AB389,30,15 (d) "Electric utility" means a public utility that sells electricity at retail. For purposes of this paragraph, a public utility is not considered to sell electricity at retail solely on the basis of its ownership or operation of a retail electric distribution system.

AB389,30,20 (e) "Excludable renewable capacity" means the portion of an electric provider's total renewable capacity that is supplied from renewable facilities that were placed in service before January 1, 1998, and that, before January 1, 1998, derived electricity from hydroelectric power, even if the output of the renewable facilities is used to satisfy requirements under federal law.

AB389,31,2 (f) "Nonsystem renewable energy" means the amount of electricity that an electric provider sells to its retail customers or members and that is supplied or allocated under executed wholesale purchase contracts from renewable facilities that are not owned or operated by the electric provider. "Nonsystem renewable energy" does not include any electricity that is not used to satisfy the electric provider's retail load obligations.

AB389,31,8 (g) "Renewable facility" means an installed and operational electric generating facility in which energy is derived from a renewable resource. "Renewable facility" includes a facility the installation or operation of which is required under federal law, but does not include a facility the installation or operation of which is required under the laws of another state even if the installation or operation of the facility is also required under federal law.

AB389,31,9 (h) "Renewable resource" means any of the following:

AB389,31,10 1. A resource that derives electricity from any of the following:

AB389,31,11 a. A fuel cell that uses, as determined by the commission, a renewable fuel.

AB389,31,12 b. Tidal or wave action.

AB389,31,13 c. Solar thermal electric or photovoltaic energy.

AB389,31,14 d. Wind power.

AB389,31,15 e. Geothermal technology.

AB389,31,16 g. Biomass.

AB389,31,18 1m. A resource with a capacity of less than 60 megawatts that derives electricity from hydroelectric power.

AB389,31,20 2. Any other resource, except a conventional resource, that the commission designates as a renewable resource in rules promulgated under sub. (4).

AB389,31,22 (i) "Renewable resource credit" means a credit calculated in accordance with rules promulgated under sub. (3) (a).

AB389,31,23 (j) "Resource" means a source of electric power generation.

AB389,32,3 (k) "Retail electric cooperative" means a cooperative association organized under ch. 185 that sells electricity at retail to its members only. For purposes of this paragraph, a cooperative association is not considered to sell electricity at retail solely on the basis of its ownership or operation of a retail electric distribution system.

AB389,32,6 (n) "System renewable energy" means the amount of electricity that an electric provider sells to its retail customers or members and that is supplied by renewable facilities owned or operated by the electric provider.

AB389,32,8 (o) "Total renewable energy" means the sum of an electric provider's system and nonsystem renewable energy.

AB389,32,12 (2) Renewable resource energy. (a) Each electric provider shall provide to its retail electric customers or members total renewable energy in at least the following percentages of its total retail energy sales, either directly or through renewable resource credits from another electric provider:

AB389,32,13 1. By December 31, 2000, 0.5%.

AB389,32,14 2. By December 31, 2002, 0.85%.

AB389,32,15 3. By December 31, 2004, 1.2%.

AB389,32,16 4. By December 31, 2006, 1.55%.

AB389,32,17 5. By December 31, 2008, 1.9%.

AB389,32,18 6. By December 31, 2010, 2.2%.

AB389,32,19 (b) For purposes of determining compliance with par. (a):