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.
AB389,32,64 (n) "System renewable energy" means the amount of electricity that an electric
5provider sells to its retail customers or members and that is supplied by renewable
6facilities owned or operated by the electric provider.
AB389,32,87 (o) "Total renewable energy" means the sum of an electric provider's system and
8nonsystem renewable energy.
AB389,32,12 9(2) Renewable resource energy. (a) Each electric provider shall provide to its
10retail electric customers or members total renewable energy in at least the following
11percentages of its total retail energy sales, either directly or through renewable
12resource credits from another electric provider:
AB389,32,1313 1. By December 31, 2000, 0.5%.
AB389,32,1414 2. By December 31, 2002, 0.85%.
AB389,32,1515 3. By December 31, 2004, 1.2%.
AB389,32,1616 4. By December 31, 2006, 1.55%.
AB389,32,1717 5. By December 31, 2008, 1.9%.
AB389,32,1818 6. By December 31, 2010, 2.2%.
AB389,32,1919 (b) For purposes of determining compliance with par. (a):
AB389,32,2120 1. Total retail energy sales shall be calculated on the basis of an average of an
21electric provider's retail energy sales in this state during the prior 3 years.
AB389,33,222 2. The amount of electricity supplied by a renewable facility in which biomass
23and conventional fuels are fired together shall be equal to the product of the
24maximum amount of electricity that the facility is capable of generating and the ratio

1of the British thermal unit content of the biomass fuels to the British thermal unit
2content of both the biomass and conventional resource fuels.
AB389,33,53 3. Any excludable renewable energy that exceeds 0.6% of an electric provider's
4total retail energy sales shall be excluded from the electric provider's total renewable
5energy.
AB389,33,116 (c) No later than April 15 annually, an electric provider shall submit a report
7to the department that describes the electric provider's compliance with par. (a).
8Reports under this paragraph may include certifications from wholesale suppliers
9regarding the sources and amounts of energy supplied to an electric provider. The
10department may specify the documentation that is required to be included with
11reports submitted under this paragraph.
AB389,33,1612 (d) The commission shall allow an electric utility to recover from ratepayers the
13cost of providing total renewable energy to its retail customers or members in
14amounts that equal or exceed the percentages specified in par. (a). Subject to any
15approval of the commission that is necessary, an electric utility may recover costs
16under this paragraph by any of the following methods:
AB389,33,1817 1. Allocating the costs equally to all customers or members on a kilowatt-hour
18basis.
AB389,33,2019 2. Establishing alternative price structures, including price structures under
20which customers or members pay a premium for renewable energy.
AB389,33,2121 3. Any combination of the methods specified in subds. 1. and 2.
AB389,33,2222 (e) 1. This subsection does not apply to any of the following:
AB389,33,2423 a. An electric provider that provides more than 10% of its summer peak demand
24in this state from renewable facilities.
AB389,34,2
1b. An electric provider that provides more than 10% of its summer peak demand
2from renewable resources.
AB389,34,53 2. For purposes of calculating the percentages under subd. 1., an electric
4provider may include renewable facilities located in this or another state and
5renewable facilities located on its or another electric provider's system.
AB389,34,96 3. Notwithstanding subd. 1., this subsection applies to an electric provider
7unless the electric provider provides documentation to the commission that
8establishes, to the satisfaction of the commission, that the electric provider satisfies
9the requirements under subd. 1. a. or b.
AB389,34,18 10(3) Renewable resource credits. (a) An electric provider that provides total
11renewable energy to its retail electric customers or members in excess of the
12percentages specified in sub. (2) (a) 1. to 6. may, in the applicable year, sell to any
13other electric provider a renewable resource credit or a portion of a renewable
14resource credit at any negotiated price. Alternatively, an electric provider may use
15a renewable resource credit or portion of a renewable resource credit in a subsequent
16year to establish compliance with sub. (2) (a). The commission shall promulgate
17rules that establish requirements for calculating the amount of a renewable resource
18credit.
AB389,34,2019 (b) The commission may promulgate rules that establish requirements and
20procedures for a sale under par. (a).
AB389,34,23 21(4) Rules. The commission may promulgate rules that designate a resource,
22except for a conventional resource, as a renewable resource in addition to the
23resources specified in sub. (1) (g) 1. and 1m.
AB389,35,5 24(5) Penalty. Any person who violates sub. (2) or any wholesale supplier who
25provides an electric provider with a false or misleading certification regarding the

1sources or amounts of energy supplied to the electric provider shall forfeit not less
2than $5,000 nor more than $500,000. Forfeitures under this subsection shall be
3enforced by action on behalf of the state by the attorney general. A court imposing
4a forfeiture under this subsection shall consider all of the following in determining
5the amount of the forfeiture:
AB389,35,76 (a) The appropriateness of the forfeiture to the person's or wholesale supplier's
7volume of business.
AB389,35,88 (b) The gravity of the violation.
AB389,35,109 (c) Whether a violation of sub. (2) is due to circumstances beyond the violator's
10control.
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