LRB-2692/1
MDK:wlj&kjf:jf
2007 - 2008 LEGISLATURE
May 14, 2007 - Introduced by Representative Montgomery, cosponsored by
Senator Plale. Referred to Committee on Energy and Utilities.
AB322,1,3
1An Act to create 196.374 (5) (bm) 3. of the statutes;
relating to: calculation of
2operating revenues of certain energy utilities for the purpose of determining
3spending on certain energy efficiency and renewable resource programs.
Analysis by the Legislative Reference Bureau
Under current law, investor-owned electric and natural gas utilities, which are
referred to as "energy utilities," are required to spend a specified percentage of their
operating revenues on certain energy efficiency and renewable resource programs,
and the Public Service Commission (PSC) is required to ensure in rate-making
orders that such energy utilities recover from rate payers the amounts spent on the
programs. Current law directs the PSC to submit, no later than December 31, 2008,
a proposal to the governor and the legislature on how energy utilities should allocate
the amounts recovered within different classes of customers.
Current law also imposes requirements on how much energy utilities may
recover from "large energy customers" during the period before the proposal goes into
effect. A "large energy customer" is defined as a customer that satisfies certain
requirements, including having a monthly demand of at least 1,000 kilowatts of
electricity or 10,000 decatherms of natural gas. During the period before the
proposal goes into effect, an energy utility may recover from a large energy customer
the amount that the energy utility recovered from the customer under former law in
2005 for similar programs. As a result, if an energy utility did not, under former law
in 2005, collect any revenues from a particular large energy customer for the purpose
of recovering the costs of the similar programs, then, during such period, the energy
utility is not allowed to recover from that customer any costs for the energy efficiency
and renewable resource programs.
Under this bill, if an energy utility did not, under former law in 2005, collect
revenues from a large energy customer for the purpose of recovering the costs of the
similar programs, the PSC is prohibited from including the revenues received by the
energy utility from the customer when the PSC determines whether the energy
utility has spent the specified percentage of its operating revenues on the energy
efficiency and renewable resource programs. This prohibition applies until the
proposal described above takes effect.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB322, s. 1
1Section
1. 196.374 (5) (bm) 3. of the statutes is created to read:
AB322,2,62
196.374
(5) (bm) 3. Until the proposal under subd. 1. takes effect, the
3commission may not include the revenues received from a large energy customer in
4the calculation of operating revenues for purposes of sub. (3) (b) 2. for an energy
5utility that in 2005 did not collect revenues from its customers under s. 196.374 (3),
62003 stats.
AB322,2,88
(1) This act takes effect on July 1, 2007.
