AB1065: Bill Text

3. MMSD is required to keep its books and records in the manner and form prescribed by the PSC. In addition to filing an annual report with the PSC, MMSD is required to provide accounts and reports, in the manner prescribed by the PSC, concerning the following: depreciation, salaries and wages, legal expenses, taxes and rentals, the quantity and value of material used, receipts from residuals, by-products, services or other sales, total and net cost, gross and net profit, dividends and interest and surplus or reserve.

4. The PSC is empowered to obtain any information from MMSD necessary for the PSC to perform its duties, including examining the books and records of MMSD and examining employes and agents of MMSD under oath. The PSC may bill MMSD for the costs of investigating the books, accounts, practices and activities of MMSD.

5. The PSC may establish classifications of service for services provided by MMSD. Similarly, the bill requires the PSC to prescribe suitable and convenient standard commercial units of products or services provided by MMSD. The bill requires the PSC to establish rules and standards to secure the accuracy of all meters and appliances used to measure MMSD services and to provide for the examination and testing of these meters and appliances.

6. MMSD may enter into any reasonable arrangement with its consumers or employes for the division or distribution of surplus profits or providing for a sliding scale for charges, subject to PSC approval. MMSD is prohibited from making any loan to its officers and commissioners.

7. MMSD may enter, at any reasonable time, any place supplied with sewerage service by MMSD for the purpose of supplying or regulating the supply of sewerage services provided by MMSD.

8. MMSD is required to file with the PSC schedules showing all rates, tolls and charges which it has established for sewerage services provided by MMSD. The rate schedules must include all rules or regulations applicable to the rendition or discontinuance of service and may not be changed, except pursuant to the PSC rate review process. MMSD is prohibited from charging or collecting any compensation for the provision of services that is more or less than that specified in its rate schedules, and MMSD is subject to a number of provisions limiting the ability of MMSD to make rebates, concessions or otherwise discriminate in the provision of service. The PSC may at any time, with notice to MMSD and opportunity for a hearing, rescind, alter or amend any PSC order applicable to MMSD including orders fixing MMSD rates, tolls or charges.

9. MMSD is prohibited from beginning the construction, installation or operation of any new plant, equipment, property or facility unless it has complied with any applicable PSC order or rule. For the first year after the bill becomes law, MMSD may not proceed with any project with a total cost in excess of $1,000,000 unless the PSC has certified that public convenience and necessity require the project. After the first year, the dollar threshold for public convenience and necessity review is to be set by the PSC by rule. MMSD is required to file its estimate of the annual rate of depreciation required for each of its classes of fixed capital and the composite annual rate of depreciation required for fixed capital as an aggregate. These estimates are subject to PSC review and revision. MMSD is required to credit to its depreciation reserve an amount required to account for depreciation at the percentage established. Only losses on property actually retired from service may be charged against the depreciation reserve.

10. MMSD may not dissolve, reorganize, acquire the stock of a public utility, abandon or discontinue any service, or sell, acquire, lease or rent MMSD plant or property without PSC approval. In addition, voluntary dissolution of MMSD also requires approval of the department of natural resources.

11. MMSD is required to provide adequate service and facilities and the charges for such services must be reasonable and just. In addition to the existing procedure under which the PSC may hear complaints regarding MMSD charges, rules and practices, the bill subjects MMSD to the same PSC complaint process used for complaints against public utilities. The bill also permits MMSD to file a complaint with the PSC regarding any matter affecting the services that it provides.

12. Commissioners, officers, employes and agents of MMSD are liable for treble damages for injury caused by wilfully or reckless violations of certain provisions.

Sale or lease of MMSD assets; dissolution of MMSD

The bill requires MMSD to sell or lease any or all MMSD assets and facilities, subject to PSC review and approval and subject to several conditions. Before the MMSD commission is required to enter into a lease or sale agreement, the PSC must determine that the lease or sale will be in the best interests of the district's ratepayers. In addition, the PSC must determine that, under the lease or sale, the employes of the district who are covered by a collective bargaining agreement and who perform functions in relation to the assets or facilities that are leased or sold will continue to perform those functions after the lease or sale, until the expiration date of their collective bargaining agreement or for 2 years after the effective date of this bill, whichever is sooner.

The bill authorizes the PSC to, upon demand, inspect the books and records of MMSD and examine MMSD commissioners, agents and employes in order to obtain information bearing on the determinations that the PSC is to make regarding the sale or lease of MMSD assets and facilities. If the PSC makes those determinations and the PSC believes that the MMSD commission has not acted in the best interests of MMSD's ratepayers in selling or leasing its assets and facilities, the PSC may appoint an individual to negotiate and enter into agreements for the sale or lease of MMSD's assets and facilities. This individual is given the authority to enter into those agreements on behalf of MMSD and MMSD is obligated to pay all costs incurred by the individual in exercising that authority.

The proceeds of any sale or lease of the assets must be distributed to the state and municipalities in MMSD's boundaries in proportion to the amounts paid by the state and municipalities for certain MMSD capital costs. The bill also authorizes MMSD to dissolve, subject to PSC review and approval, if all of the district's assets and facilities are sold, if all of MMSD's outstanding indebtedness is retired and if all bonds issued by the district are paid off.

Other

This bill requires the MMSD commission to develop and implement a plan to refund to Milwaukee County residents excess reserves that are held by MMSD, as determined by the PSC. The bill also requires the PSC to study the likely effects of any sale or lease of MMSD assets on the rates charged for sewerage service in the district.

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:

AB1065, s. 1 Section 1. 20.155 (1) (title) of the statutes is amended to read:

AB1065,5,2 20.155 (1) (title) Regulation of public utilities and regulated districts.

AB1065, s. 2 Section 2. 20.155 (1) (g) of the statutes is amended to read:

AB1065,6,2 20.155 (1) (g) (title) Utility regulation Regulation of utilities and regulated districts. The amounts in the schedule for the regulation of utilities and regulated districts. Ninety percent of all moneys received by the commission under s. 184.10 (3), 196.85 or 196.855 shall be credited to this appropriation. Ninety percent of all receipts from the sale of miscellaneous printed reports and other copied material, the cost of which was originally paid under this paragraph, shall be credited to this appropriation.

AB1065, s. 3 Section 3. 66.076 (1m) of the statutes is amended to read:

AB1065,6,6 66.076 (1m) In this section, "municipality" means any town, village, city or metropolitan sewerage district created under ss. 66.20 to 66.26 or under ss. 66.88 to 66.918.

AB1065, s. 4 Section 4. 66.076 (7) of the statutes is amended to read:

AB1065,6,12 66.076 (7) Sewerage service charges shall be collected and taxed and shall be a lien upon the property served in the same manner as water rates are taxed and collected under s. 66.069 (1) or 66.071 (1) (e), so far as applicable , except that charges of a metropolitan sewerage district created under ss. 66.88 to 66.918 shall be assessed and collected as provided in s. 66.91 (5).

AB1065, s. 5 Section 5. 66.076 (8) of the statutes is amended to read:

AB1065,6,19 66.076 (8) The governing body of any municipality, and the officials in charge of the management of the sewerage system as well as other officers of the municipality, shall be governed in the discharge of their powers and duties under this section by s. 66.069 or 66.071 (1) (e), which are hereby made a part of this section so far as applicable and not inconsistent herewith or, in the case of a metropolitan sewerage district created under ss. 66.88 to 66.918, by ss. 66.91 and 66.912.

AB1065, s. 6 Section 6. 66.886 (2) (a) 1. of the statutes is amended to read:

AB1065,6,25 66.886 (2) (a) 1. No resolution adopted by the commission under s. 66.91 (1), (3) (c) or (6), 67.05 (1) or 67.12 (12), no proposed schedule of charges under s. 66.076, 66.898 (4), 66.899 or 66.91 (5) (b) 3., no decision to borrow against taxes under s. 67.12 (1) and no decision to borrow under s. 24.61 (3) (a) 7. is valid unless adopted by an affirmative vote of at least a two-thirds majority of all commissioners.

AB1065, s. 7 Section 7. 66.888 (2) (b) of the statutes is amended to read:

AB1065,7,3 66.888 (2) (b) The name of a district created under s. 66.882 (1) (b) is the Milwaukee metropolitan sewerage district Metropolitan Sewerage District.

AB1065, s. 8 Section 8. 66.891 of the statutes is created to read:

AB1065,7,7 66.891 Dissolution of the district; sale or lease of district assets and facilities. (1) General authority. The commission shall, subject to s. 196.80, lease or sell any or all of the district's assets and facilities if all of the following apply:

AB1065,7,9 (a) The public service commission determines that a lease or sale will be in the best interests of the district's ratepayers.

AB1065,7,19 (b) The public service commission determines that, under the terms of any lease or sale agreement, the employes of the district who cease to be employes of the district on the effective date of the lease or sale and who are performing functions in relation to the assets or facilities that are leased or sold and who are covered by a collective bargaining agreement under subch. IV of ch. 111, which is in effect on the day before the effective date of the lease or sale, shall continue to perform the functions that they perform on the day before the effective date of the lease or sale, after the lease or sale until the expiration date of the collective bargaining agreement that applies to such employes or for 2 years following the effective date of this paragraph .... [revisor inserts date], whichever is sooner.

AB1065,7,23 (2) Dissolution of the district. Subject to s. 196.78, after retiring all outstanding indebtedness of the district and paying off all bonds issued by the district, the commission may dissolve the district if all of the district's assets and facilities are sold under sub. (1).

AB1065,8,3 (3) Application of proceeds. The proceeds of any sale or lease under sub. (1) (a) to an entity other than the state shall be distributed, in a manner approved by the public service commission, to the state and municipalities in proportion to the amounts paid by the state and municipalities for capital costs since the district was reorganized under s. 66.882 (1) (b).

AB1065, s. 9 Section 9. 66.892 (2) (a) of the statutes is amended to read:

AB1065,8,6 66.892 (2) (a) Except as provided in pars. (b) to (d) and subject to s. 144.04 and 196.49, no commission may separate combined storm and sanitary sewers.

AB1065, s. 10 Section 10. 66.892 (2) (d) of the statutes is amended to read:

AB1065,8,11 66.892 (2) (d) Any person aggrieved by the decision of the commission to separate a combined storm and sanitary sewer may file a petition for judicial review in the circuit court for the county in which the district is located. Nothing in this paragraph affects any review under s. 144.04 or 196.49.

AB1065, s. 11 Section 11. 66.894 (1) (intro.) of the statutes is amended to read:

AB1065,8,16 66.894 (1) General powers of the commission. (intro.) To the extent necessary to carry out its duties under s. 66.89 and subject to any approval required under s. 196.49, the commission may project, plan, design, adopt, construct, operate and maintain:

AB1065, s. 12 Section 12. 66.898 (3) of the statutes is amended to read:

AB1065,8,24 66.898 (3) Service charges for operation and maintenance. As part of any contract executed under this section, the commission may assess reasonable and just sewerage service charges against the contracting party with respect to operating and maintenance costs. These charges shall be established proposed by the commission in accordance with s. 66.912 and are subject to review under s. 66.912. The schedule of service charges may, but need not, be uniform with any other schedule of charges shall be established by the public service commission.

AB1065, s. 13 Section 13. 66.898 (4) (a) of the statutes is amended to read:

AB1065,9,6 66.898 (4) (a) As part of any contract executed under this section, the commission may assess reasonable and just sewerage service charges against the contracting party with respect to capital costs. These sewerage service charges are subject to review under s. 66.912. The schedule of sewerage service charges with respect to capital costs used in contracts executed under this section shall be uniform with the system used to recover capital costs within the district.

AB1065, s. 14 Section 14. 66.898 (4) (b) of the statutes is amended to read:

AB1065,9,16 66.898 (4) (b) Except as provided in par. (c), the The charges assessed under this subsection shall be established proposed by the commission in accordance with s. 66.076 or 66.91 (5) and shall be established by the public service commission. In computing the schedule of charges under this subsection, the public service commission may consider the factors specified in s. 66.076 (5) or 66.91 (5). In computing the schedule of charges under this subsection, the public service commission may also consider the fact that sewerage service may not be available to or may be available to but not utilized by a part of the property located within the territorial limits of a contracting party at the time of computing the schedule.

AB1065, s. 15 Section 15. 66.898 (4) (c) of the statutes is repealed.

AB1065, s. 16 Section 16. 66.899 of the statutes is repealed.

AB1065, s. 17 Section 17. 66.90 (1) of the statutes is amended to read:

AB1065,9,25 66.90 (1) General power of the commission. The Subject to any approvals by the public service commission required under s. 196.49, the commission may acquire by gift, purchase, lease or other methods of acquisition or by condemnation, any real property situated in the state and all tenements, hereditaments and appurtenances belonging or in any way appertaining to, or in any interest, franchise, easement, right or privilege therein, that may be needed for the purpose of projecting, planning, constructing and maintaining the sewerage system, that may be needed for the collection, transmission or disposal of all sewage or drainage of the district or that may be needed for improving any river or stream within the district under s. 66.894 (8) (a) or (b).

AB1065, s. 18 Section 18. 66.904 (1) of the statutes is amended to read:

AB1065,10,10 66.904 (1) General powers of the commission. The Subject to any approvals by the public service commission under ch. 196, the commission may enter into contracts, agreements or stipulations necessary to perform its duties and exercise its powers under ss. 66.88 to 66.918, including contracts to purchase, lease or otherwise obtain the use of all necessary equipment, supplies and labor.

AB1065, s. 19 Section 19. 66.91 (intro.) of the statutes is amended to read:

AB1065,10,15 66.91 Financing. (intro.) The Subject to ch. 196, the district may borrow money and issue and execute bonds, notes and other forms of indebtedness and may enter into agreements to secure its indebtedness in the manner specified in subs. (1) to (7):

AB1065, s. 20 Section 20. 66.91 (1) (g) of the statutes is amended to read:

AB1065,10,22 66.91 (1) (g) User charges and service charges established proposed by the commission under sub. (5) or s. 66.076 to comply with any covenant concerning the sufficiency of the charges contained in a resolution or ordinance providing for the issuance of revenue bonds or notes under s. 66.066 shall be presumed reasonable in any review of the charges by the public service commission under s. 66.912 (5) in establishing such charges.

AB1065, s. 21 Section 21. 66.91 (5) (a) of the statutes is amended to read:

AB1065,11,8 66.91 (5) (a) For service provided to any user, the The commission may establish, propose to assess and collect service charges under s. 66.076 or for any person provided service. These service charges shall be established by the public service commission and then assessed and collected under this subsection. For service to any user outside the district and not located in a municipality which has contracted with the district under s. 66.898, the commission may establish, assess and collect service charges under s. 66.899. Except as provided under s. 66.899 (2), any charge made by the district under this subsection is reviewable under s. 66.912 (5). The sewerage service charges established under s. 66.076 or under this subsection with respect to capital costs for service to any user shall be uniform.

AB1065, s. 22 Section 22. 66.91 (5) (b) 1. of the statutes is amended to read:

AB1065,11,13 66.91 (5) (b) 1. The commission may, as a complete or partial alternative to any other method of recovering capital costs, compute a proposed schedule of charges based on capital costs to be recovered under this subsection from any user person provided service.

AB1065, s. 23 Section 23. 66.91 (5) (b) 3. a. of the statutes is amended to read:

AB1065,11,16 66.91 (5) (b) 3. a. Adopt Propose a schedule of charges computed under this paragraph. The commission may modify the schedule as it deems necessary.

AB1065, s. 24 Section 24. 66.91 (5) (b) 3. b. of the statutes is amended to read:

AB1065,11,20 66.91 (5) (b) 3. b. Submit the proposed schedule of charges it adopts and each modification of the schedule to each municipality subject to the charges the public service commission for review under ch. 196.

AB1065, s. 25 Section 25. 66.91 (5) (c) 1. of the statutes is amended to read:

AB1065,11,24 66.91 (5) (c) 1. Charges for sewerage service shall, to the extent practicable, be proportionate to the costs of the sewerage system that the district may reasonably attribute to the user person provided service.

AB1065, s. 26 Section 26. 66.91 (5) (c) 2. of the statutes is amended to read:

AB1065,12,9 66.91 (5) (c) 2. The commission may propose to classify users on the basis of uses and may establish propose separate charges for separate classes. In computing proposed charges, the commission may consider any reasonable factor, including wastewater flow or drainage, delivery flow characteristics, water consumption, type and number of sewerage connections or plumbing fixtures, population served, lot size, portion of lot improved and assessed value of property served. The commission may also compute its proposed fee schedules as needed to meet the requirements of s. 66.076 or of title II of the water pollution control act, 33 USC 1251 et seq. All charges, rates and fees shall be established by the public service commission.

AB1065, s. 27 Section 27. 66.91 (5) (d) 1. of the statutes is amended to read:

AB1065,12,21 66.91 (5) (d) 1. Each sanitary district organized under subch. IX of ch. 60 and each metropolitan sewerage district organized under ss. 66.20 to 66.26 that is billed by the commission under par. (b) shall, within 5 days of receipt of a bill from the commission, in turn bill each city, town or village served by the sanitary district or metropolitan sewerage district organized under ss. 66.20 to 66.26. Each city, town or village located within the district and billed under this paragraph or billed by the commission under par. (b) or under s. 66.076 shall, within 45 days of receiving the bill, pay the full amount billed to the district. Each municipality may levy a reasonable penalty for late payment by the user to the municipality. Each municipality may provide for the payment of charges to it by any means specified in s. 66.898 (5).

AB1065, s. 28 Section 28. 66.91 (5) (e) of the statutes is amended to read:

AB1065,13,2 66.91 (5) (e) The commission may separately compute, on any reasonable basis, both capital and operating costs of providing sewerage service to any federal, state, county or municipal facility and may, upon approval by the public service commission, directly bill the federal government, the state, the county or the municipality.

AB1065, s. 29 Section 29. 66.912 (2) (a) of the statutes is amended to read:

AB1065,13,5 66.912 (2) (a) Compute a proposed uniform schedule of charges based on operating expenses to be recovered from users under this subsection.

AB1065, s. 30 Section 30. 66.912 (2) (b) of the statutes is amended to read:

AB1065,13,8 66.912 (2) (b) Adopt Propose the uniform schedule of charges computed under par. (a). The commission may modify the schedule periodically.

AB1065, s. 31 Section 31. 66.912 (2) (c) of the statutes is amended to read:

AB1065,13,13 66.912 (2) (c) Submit the proposed schedule adopted under par. (b) and every modification to every municipality within the sewerage service area as early in every calendar year as practicable the public service commission for approval under ch. 196.

AB1065, s. 32 Section 32. 66.912 (3) of the statutes is amended to read:

AB1065,13,21 66.912 (3) Factors in charge schedules. In computing a proposed charge schedule under sub. (2) (a), the sewerage commission shall require each user to pay the proportion of total operating cost of the system incurred by the transmission and treatment of the user's wastewater. In determining such proportional costs, the sewerage commission shall consider such factors, without limitation because of enumeration, as strength, volume and delivery flow rate characteristics of each user's sewage.

AB1065, s. 33 Section 33. 66.912 (5) of the statutes is repealed.

AB1065, s. 34 Section 34. 196.01 (6m) of the statutes is created to read:

AB1065,13,25 196.01 (6m) "Regulated district" means a metropolitan sewerage district created under s. 66.882.

AB1065, s. 35 Section 35. 196.02 (1) of the statutes is amended to read: