LRB-1197/2
MDK:jld&hmh:km
2001 - 2002 LEGISLATURE
April 6, 2001 - Introduced by Representatives Ziegelbauer, Hoven, Albers,
Grothman, Gundrum, Ladwig, F. Lasee, Nass, Reynolds, Ryba
and Townsend,
cosponsored by Senators Harsdorf, Roessler, Schultz, Welch and Zien.
Referred to Committee on Energy and Utilities.
AB302,1,9 1An Act to repeal 15.107 (17), 16.957, 16.958, 20.505 (10) (q), (r) and (s), 20.505
2(11), 25.17 (1) (ai), 25.17 (1) (xm), 25.96, 25.97, 76.28 (1) (eg), 76.28 (1) (gr), 76.48
3(1g) (dm), 76.48 (1g) (fm), 77.54 (44), 196.374 (3) and (4), 196.86 and 285.48; to
4amend
76.28 (1) (d) and 76.48 (1g) (d); to repeal and recreate 196.374 (1) and
5196.374 (2); and to create 20.155 (1) (a), 20.505 (10) (a), 196.374 (2g) and
6196.374 (2r) of the statutes; relating to: low-income energy assistance, energy
7conservation and efficiency, renewable energy resources, and commitment to
8community programs, public benefits fees, and nitrogen oxide emission
9reductions.
Analysis by the Legislative Reference Bureau
Under current law, the department of administration (DOA) is required to
establish programs for providing energy assistance to low-income households, for
conservation and efficiency services, and for encouraging the development and use
of renewable energy resources. These programs are funded from public benefits fees
that DOA collects from nonmunicipal electric public utilities, which must charge the
public benefits fees to their customers.
Current law also requires municipal electric public utilities and retail electric
cooperatives (municipal utilities and cooperatives) to charge a public benefits fee to

their customers or members. A municipal utility or cooperative must elect to
contribute all or a specified portion of the public benefits fees to DOA for the
programs. A municipal utility or cooperative that does not elect to contribute all of
the public benefits fees to DOA must spend specified portions of the fees on its own
"commitment to community programs," which are defined as low-income energy
assistance and energy conservation programs. DOA deposits all public benefits fees
received from nonmunicipal electric public utilities, municipal utilities, and
cooperatives into the utility public benefits fund. In addition, DOA must encourage
customers and members of nonmunicipal electric public utilities, municipal utilities,
and cooperatives to make voluntary contributions for the programs that DOA
establishes. The voluntary contributions are also deposited into the utility public
benefits fund.
The programs that DOA establishes are also funded by contributions that are
required to be made by gas and electric utilities (required contributions). Under
current law, the public service commission (PSC) is required to determine the
amount that a gas or electric utility spent on low-income energy assistance, energy
conservation, renewable energy resources, and environmental research and
development programs in 1998. Each year, a gas or electric utility must spend a
decreasing portion of the amount spent on each type of program and make an
increasing portion of such amount as a required contribution to the PSC for deposit
in the utility public benefits fund.
This bill eliminates the requirements for DOA to establish the programs
described above and for municipal utilities and cooperatives to establish
commitment to community programs. Under the bill, nonmunicipal electric public
utilities, municipal utilities, and cooperatives must refund to their customers and
members any public benefits fees and voluntary contributions that they have not yet
paid to DOA.
The bill also transfers the unencumbered balance in the utility public benefits
fund to the general fund. Of the amount that is transferred, the PSC must determine
how much is attributable to required contributions by each electric and gas utility
and pay that amount to the electric and gas utility. The bill requires electric and gas
utilities to spend at least 0.5% of their total annual operating revenues on programs
designed to promote and accomplish energy conservation. However, the PSC may
require them to spend a lesser or greater percentage if, after a hearing, the PSC finds
such spending in the public interest. An electric or gas utility may use the amount
that it is paid by PSC under the bill only for spending on energy conservation
programs.
Also under the bill, from the general fund, DOA must pay to electric public
utilities, municipal utilities, and cooperatives an amount equal to the difference
between: 1) the unencumbered balance in the utility public benefits fund that is
transferred to the general fund; and 2) the amount described above that the PSC
determines is attributable to required contributions by electric and gas utilities. The
amount that is paid to each electric public utility, municipal utility, and cooperative
is based on its percentage of the total deposits of public benefits fees and voluntary
contributions into the utility public benefits fund.

Finally, under current law, certain provisions apply only if the department of
natural resources (DNR) is required under the federal Clean Air Act to issue a state
implementation plan for the control of atmospheric ozone in another state that
requires electric generating facilities in the western portion of the state to reduce
nitrogen oxide emissions. The provisions include requirements for each of the
following: 1) limiting the amount of reductions that DNR may require for different
types of nonutility and mobile air emissions sources and electric generating facilities
in different portions of the state; 2) establishing an air quality improvement fund
from which DOA makes grants to electric providers in the western portion of the
state for complying with the reductions; 3) requiring the PSC to make assessments
against electric utility affiliates of holding companies in the eastern portion of the
state; and 4) requiring the PSC to deposit any such assessments into the air quality
improvement fund. DNR has not been required to issue the state implementation
plan described above and this bill eliminates all of the foregoing provisions.
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:
AB302, s. 1 1Section 1. 15.107 (17) of the statutes is repealed.
AB302, s. 2 2Section 2. 16.957 of the statutes is repealed.
AB302, s. 3 3Section 3. 16.958 of the statutes is repealed.
AB302, s. 4 4Section 4. 20.155 (1) (a) of the statutes is created to read:
AB302,3,85 20.155 (1) (a) Utility contribution refunds. A sum sufficient equal to the
6aggregate amount that the commission has determined for all utilities under 2001
7Wisconsin Act .... (this act), section 26 (3) (a ), for the purpose of making payments to
8utilities under 2001 Wisconsin Act .... (this act), section 26 (3 ) (b).
AB302, s. 5 9Section 5. 20.505 (10) (a) of the statutes is created to read:
AB302,4,310 20.505 (10) (a) Public benefits fee and contribution refunds. A sum sufficient
11equal to the difference between the amount transferred to the general fund under
122001 Wisconsin Act .... (this act), section 27 (1), and the aggregate amount that the
13commission has determined for all utilities under 2001 Wisconsin Act .... (this act),

1section 26 (3) (a ), for the purpose of making payments to electric utilities, municipal
2utilities, and retail electric cooperatives under 2001 Wisconsin Act .... (this act),
3section 26 (2) (b ).
AB302, s. 6 4Section 6. 20.505 (10) (q), (r) and (s) of the statutes are repealed.
AB302, s. 7 5Section 7. 20.505 (11) of the statutes is repealed.
AB302, s. 8 6Section 8. 25.17 (1) (ai) of the statutes is repealed.
AB302, s. 9 7Section 9. 25.17 (1) (xm) of the statutes is repealed.
AB302, s. 10 8Section 10. 25.96 of the statutes is repealed.
AB302, s. 11 9Section 11. 25.97 of the statutes is repealed.
AB302, s. 12 10Section 12. 76.28 (1) (d) of the statutes is amended to read:
AB302,5,1811 76.28 (1) (d) "Gross revenues" for a light, heat and power company other than
12a qualified wholesale electric company or a transmission company means total
13operating revenues as reported to the public service commission except revenues for
14interdepartmental sales and for interdepartmental rents as reported to the public
15service commission and deductions from the sales and use tax under s. 77.61 (4),
16except that the company may subtract from revenues either the actual cost of power
17purchased for resale, as reported to the public service commission, by a light, heat
18and power company, except a municipal light, heat and power company, that
19purchases under federal or state approved wholesale rates more than 50% of its
20electric power from a person other than an affiliated interest, as defined in s. 196.52
21(1), if the revenue from that purchased electric power is included in the seller's gross
22revenues or the following percentages of the actual cost of power purchased for
23resale, as reported to the public service commission, by a light, heat and power
24company, except a municipal light, heat and power company that purchases more
25than 90% of its power and that has less than $50,000,000 of gross revenues: 10% for

1the fee assessed on May 1, 1988, 30% for the fee assessed on May 1, 1989, and 50%
2for the fee assessed on May 1, 1990, and thereafter. For a qualified wholesale electric
3company, "gross revenues" means total business revenues from those businesses
4included under par. (e) 1. to 4. For a transmission company, "gross revenues" means
5total operating revenues as reported to the public service commission, except
6revenues for transmission service that is provided to a public utility that is subject
7to the license fee under sub. (2) (d), to a public utility, as defined in s. 196.01 (5), or
8to a cooperative association organized under ch. 185 for the purpose of providing
9electricity to its members only. For an electric utility, as defined in s. 16.957 (1) (g),
10"gross revenues" does not include public benefits fees collected by the electric utility
11under s. 16.957 (4) (a) or (5) (a). For a generator public utility, "gross revenues" does
12not include any grants awarded to the generator public utility under s. 16.958 (2) (b).
13For a wholesale supplier, as defined in s. 16.957 (1) (w), "gross revenues" does not
14include any public benefits fees that are received from a municipal utility or retail
15electric cooperative or under a joint program established under s. 16.957 (5) (f). For
16a municipal utility, "gross revenues" does not include public benefits fees received by
17the municipal utility from a municipal utility or retail electric cooperative under a
18joint program established under s. 16.957 (5) (f).
AB302, s. 13 19Section 13. 76.28 (1) (eg) of the statutes is repealed.
AB302, s. 14 20Section 14. 76.28 (1) (gr) of the statutes is repealed.
AB302, s. 15 21Section 15. 76.48 (1g) (d) of the statutes is amended to read:
AB302,6,1322 76.48 (1g) (d) "Gross revenues" means total operating revenues, except
23revenues for interdepartmental sales and for interdepartmental rents, less
24deductions from the sales and use tax under s. 77.61 (4) and, in respect to any electric
25cooperative that purchases more than 50% of the power it sells, less the actual cost

1of power purchased for resale by an electric cooperative, if the revenue from that
2purchased electric power is included in the seller's gross revenues or if the electric
3cooperative purchased more than 50% of the power it sold in the year prior to
4January 1, 1988, from a seller located outside this state. For an electric cooperative,
5"gross revenues" does not include grants awarded to the electric cooperative under
6s. 16.958 (2) (b). For a retail electric cooperative, "gross revenues" does not include
7public benefits fees collected by the retail electric cooperative under s. 16.957 (5) (a),
8public benefits fees received by the retail electric cooperative from a retail electric
9cooperative or municipal utility under a joint program established under s. 16.957
10(5) (f). For a wholesale supplier, as defined in s. 16.957 (1) (w), "gross revenues" does
11not include any public benefits fees that are received from a municipal utility, as
12defined in s. 16.957 (1) (q), or retail electric cooperative or under a joint program
13established under s. 16.957 (5) (f).
AB302, s. 16 14Section 16. 76.48 (1g) (dm) of the statutes is repealed.
AB302, s. 17 15Section 17. 76.48 (1g) (fm) of the statutes is repealed.
AB302, s. 18 16Section 18. 77.54 (44) of the statutes is repealed.
AB302, s. 19 17Section 19. 196.374 (1) of the statutes is repealed and recreated to read:
AB302,6,1918 196.374 (1) In this section, "utility" means a Class A gas or electric utility, as
19defined by the commission.
AB302, s. 20 20Section 20. 196.374 (2) of the statutes is repealed and recreated to read:
AB302,6,2321 196.374 (2) Except as provided in sub. (2g), each utility shall spend annually
22at least 0.5% of its total annual operating revenues on programs designed to promote
23and accomplish energy conservation.
AB302, s. 21 24Section 21. 196.374 (2g) of the statutes is created to read:
AB302,7,4
1196.374 (2g) The commission may require a utility to spend annually under
2sub. (2) an amount that is more or less than 0.5% of its annual operating revenues
3if, after notice and hearing, the commission finds that the expenditure of such
4amount is in the public interest.
AB302, s. 22 5Section 22. 196.374 (2r) of the statutes is created to read:
AB302,7,116 196.374 (2r) The commission may prescribe all or part of any program that is
7funded under sub. (2). The commission may require that a utility establish a
8program funded under sub. (2) that is applicable only to a group of consumers,
9including low-income utility customers, specified under guidelines established by
10the commission if the commission determines that the group has special energy
11conservation needs.
AB302, s. 23 12Section 23. 196.374 (3) and (4) of the statutes are repealed.
AB302, s. 24 13Section 24. 196.86 of the statutes is repealed.
AB302, s. 25 14Section 25. 285.48 of the statutes is repealed.
AB302, s. 26 15Section 26 . Nonstatutory provisions.
AB302,7,1616 (1) Definitions. In this Section:
AB302,7,1717 (a) "Commission" means the public service commission.
AB302,7,1818 (b) "Department" means the department of administration.
AB302,7,1919 (c) "Electric utility" has the meaning given in section 16.957 (1) (g), 1999 stats.
AB302,7,2120 (d) "Municipal utility" has the meaning given in section 16.957 (1) (q), 1999
21stats.
AB302,7,2322 (e) "Retail electric cooperative" has the meaning given in section 16.957 (1) (t),
231999 stats.
AB302,7,2424 (f) "Utility" has the meaning given in section 196.374 (1) (c), 1999 stats.
AB302,7,2525 (2) Public benefits fee and contribution refunds.
AB302,8,8
1(a) Each electric utility, municipal utility, and retail electric cooperative that
2has collected public benefits fees from customers or members under section 16.957
3(4) (a), 1999 stats., or section 16.957 (5) (a), 1999 stats., or received contributions from
4customers or members under section 16.957 (2) (c) 4., 1999 stats., or section 16.957
5(2) (d) 2., 1999 stats., and that has not paid the fees or contributions to the
6department shall, no later than the first day of the 3rd month beginning after the
7effective date of this paragraph, refund the fees or contributions to the customers or
8members.
AB302,8,239 (b) The department shall determine the percentage of public benefits fees and
10contributions that each electric utility, municipal utility, and retail electric
11cooperative has paid to the department under section 16.957 (4) (a), 1999 stats., or
12section 16.957 (5) (a), 1999 stats., or section 16.957 (2) (c) 4., 1999 stats., or section
1316.957 (2) (d) 2., 1999 stats. From the appropriation under section 20.505 (10) (a) of
14the statutes, as created by this act, the department shall, no later than the first day
15of the 3rd month beginning after the effective date of this paragraph, pay to each
16electric utility, municipal utility, and retail electric cooperative an amount equal to
17the percentage determined under this paragraph multiplied by the difference
18between the amount transferred to the general fund under Section 27 (1 ) of this act
19and the aggregate amount that the commission has determined for all utilities under
20subsection (3) (a). No later than the first day of the 6th month beginning after the
21effective date of this paragraph, each electric utility, municipal utility, and retail
22electric cooperative shall refund to its customers and members the amount that it is
23paid by the department under this paragraph.
AB302,8,2424 (3) Utility contribution refunds.
AB302,9,3
1(a) The commission shall determine the amount transferred to the general fund
2under Section 27 (1) of this act that is attributable to contributions by each utility
3under section 196.374 (3), 1999 stats.
AB302,9,104 (b) From the appropriation under section 20.155 (1) (a) of the statutes, as
5created by this act, the commission shall, no later than the first day of the 3rd month
6beginning after the effective date of this paragraph, pay to each utility the amount
7that the commission has determined under paragraph (a) is attributable to the
8utility. A utility that receives a payment under this paragraph may use the payment
9only for purposes of complying with section 196.374 (2) of the statutes, as affected by
10this act.
AB302, s. 27 11Section 27 . Appropriation changes.
AB302,9,1412 (1) Utility public benefits fund. On the effective date of this subsection, the
13unencumbered balance in the utility public benefits fund immediately prior to the
14effective date of this subsection is transferred to the general fund.
AB302,9,1515 (End)
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