(e) "Region" means an interstate geographic area that includes any portion of this state.
(f) "Rural utilities service" means the agency in the federal department of agriculture that is the successor to the rural electrification administration.
(fm) "Subsidiary" means any person, 5% or more of the securities of which are directly or indirectly owned by another person.
(g) "Transmission area" means the area of the state that, on January 1, 1997, was served by the Mid-America Interconnected Network, Inc., reliability council of the North American Electric Reliability Council.
(h) "Transmission facility" means any pipe, pipeline, duct, wire, line, conduit, pole, tower, equipment or other structure used for the transmission of electric power as determined by the public service commission on the basis of factors for identifying a transmission facility that are specified in the orders of the federal energy regulatory commission under 16 USC 824d and 824e.
(i) "Transmission utility" means a cooperative or public utility that owns a transmission facility in this state and that provides transmission service in this state.
(2) Commission powers and duties. (a) By June 30, 2000, if a transmission utility has not transferred control over its transmission facilities to an independent system operator that is approved by the applicable federal agency or divested, with approval of the applicable federal agency and, for a public utility, the commission, its interest in its transmission facilities to an independent transmission owner, the commission shall, subject to par. (am), order the transmission utility to apply to the applicable federal agency to do one of the following:
1. Transfer control of the transmission utility's transmission facilities to an independent system operator that has received the approval of the federal agency to operate in a region.
2. If the federal agency has not approved an independent system operator specified in subd. 1., transfer control over the transmission utility's transmission facilities to an independent system operator that is intended to operate in a region.
3. If the transmission utility does not, or is not able to, to the satisfaction of the commission, transfer its transmission facilities to an independent system operator specified in subd. 2., divest the transmission utility's interest in its transmission facilities to an independent transmission owner.
(am) The commission may waive the requirement to issue an order against a transmission utility under par. (a) if each of the following is satisfied:
1. The transmission utility has filed an application with the applicable federal agency for approval to transfer control of its transmission facilities to an independent system operator or to divest its interest in its transmission facilities to an independent transmission owner.
2. The commission finds that the waiver is reasonably expected to result in a more expeditious transfer of control to an independent system operator or divestment of interest to an independent transmission owner than would result under an order issued under par. (a). In making a finding under this subdivision, the commission shall consider the need for a reasonably prompt transition period for the transfer of control or divestment of interest that ensures, to the maximum extent practicable, the continued reliability of the electric transmission system in this state.
(b) By June 30, 2000, the commission shall, except as provided in par. (bm), order each transmission utility in this state that is a public utility to identify and separately account for the cost of retail transmission service and to take all retail transmission service from an independent system operator or independent transmission owner.
(bm) The commission may issue an order under par. (b) after June 30, 2000, if the commission determines that a later date is necessary due to circumstances beyond the control of a transmission utility, including regulatory delays at the commission or applicable federal agency.
(c) The commission has jurisdiction to do all things necessary and convenient to enforce the requirements of this section.
(3) Independent system operator and independent transmission owner duties. (a) If an independent system operator that has control over transmission facilities in this state determines that there is a need for additional transmission facilities in this state, the independent system operator shall order any transmission utility that has transferred control over transmission facilities to the independent system operator to, subject to the requirements of ss. 196.49 and 196.491 (3), expand the portion of the electric transmission system that is in this state and under the control of the independent system operator or construct additional transmission facilities in that portion of the transmission system. An independent system operator may issue an order under this paragraph only if a transmission utility that is subject to the order is reasonably compensated for the costs incurred in complying with the order.
(bm) If each of the transmission utilities in the transmission area that are public utilities have not transferred control over their transmission facilities to the same independent system operator, the independent system operator that controls transmission facilities in the transmission area shall ensure that, by itself or pursuant to a long-term agreement with another independent system operator, the transmission facilities in the transmission area are planned, constructed, operated, maintained and controlled as a single transmission system.
(b) If an independent transmission owner determines that there is a need for additional transmission facilities in a portion of the electric transmission system of this state that consists of transmission facilities the interest in which has been divested to the independent transmission owner by a transmission utility, the independent transmission owner shall, subject to the requirements of ss. 196.49 and 196.491 (3), expand that portion of the electric transmission system or construct additional transmission facilities in that portion.
(c) An independent transmission owner or an independent system operator shall operate transmission facilities over which it has control in a manner that does each of the following:
1. To the maximum extent practicable, eliminates advantages in electric generation, wholesale and retail markets that are otherwise related to ownership, control or operation of transmission facilities over which it has control.
2. Satisfies the reasonable needs of transmission users in this state for reliable, low-cost and competitively priced electric service.
(4) Transmission utilities. (a) A transmission utility may not transfer control over, or divest its interest in, its transmission facilities to an independent system operator or independent transmission owner unless, to the satisfaction of the commission, each of the following requirements is satisfied:
1. The independent system operator or independent transmission owner is the sole provider of all transmission service to all users of its transmission system in this state, including the provision of retail transmission service to users that are public utilities.
2. The independent system operator or independent transmission owner has authority over transmission facilities that is sufficient for the independent system operator or independent transmission owner to ensure the reliability of its transmission system.
3. The independent system operator or independent transmission owner has sufficient authority to carry out the duties specified in sub. (3).
(b) A transmission utility that transfers control over its transmission facilities to an independent system operator shall, subject to the approval of the applicable federal agency, provide reasonable and cost-effective construction, operation and maintenance services to the independent system operator that are required for operation of the transmission facilities.
204,31 Section 31. 196.491 (title) of the statutes is amended to read:
196.491 (title) Advance planning of electric Strategic energy assessment; electric generating facilities and transmission lines.
204,32 Section 32. 196.491 (1) (a) of the statutes is repealed.
204,33 Section 33. 196.491 (1) (am) of the statutes is created to read:
196.491 (1) (am) "Affiliated interest" has the meaning given in s. 196.52 (1).
204,34 Section 34. 196.491 (1) (bm) of the statutes is created to read:
196.491 (1) (bm) "Cooperative association" means a cooperative association organized under ch. 185 for the purpose of generating, distributing or furnishing electric energy at retail or wholesale to its members only.
204,35 Section 35. 196.491 (1) (d) of the statutes is amended to read:
196.491 (1) (d) "Electric utility" means any public utility, as defined in s. 196.01, which is involved in the generation, distribution and sale of electric energy, and any corporation, company, individual or association, and any cooperative association organized under ch. 185 for the purpose of generating, distributing or furnishing electric energy at retail or wholesale to its members only, which owns or operates, or plans within the next 10 3 years to construct, own or operate, bulk electric generating facilities, large electric generating facilities or high-voltage transmission lines in the state.
204,36 Section 36. 196.491 (1) (e) of the statutes is amended to read:
196.491 (1) (e) "Facility" means a bulk electric generating facility, a large electric generating facility or a high-voltage transmission line.
204,37 Section 37. 196.491 (1) (g) of the statutes is amended to read:
196.491 (1) (g) "Large electric generating facility" means electric generating equipment and associated facilities designed for nominal operation at a capacity of between 12,000 and 300,000 kilowatts 100 megawatts or more.
204,38 Section 38. 196.491 (1) (w) of the statutes is created to read:
196.491 (1) (w) "Wholesale merchant plant" means electric generating equipment and associated facilities located in this state that do not provide service to any retail customer and that are owned and operated by any of the following:
1. Subject to the approval of the commission under sub. (3m) (a), an affiliated interest of a public utility.
2. A person that is not a public utility.
204,39 Section 39. 196.491 (2) (title) of the statutes is repealed and recreated to read:
196.491 (2) (title) Strategic energy assessment.
204,40 Section 40. 196.491 (2) (a) (intro.) of the statutes is repealed and recreated to read:
196.491 (2) (a) (intro.) The commission shall prepare a biennial strategic energy assessment that evaluates the adequacy and reliability of the state's current and future electrical supply. The strategic energy assessment shall do all of the following:
204,41 Section 41. 196.491 (2) (a) 1. and 2. of the statutes are repealed.
204,42 Section 42. 196.491 (2) (a) 3. of the statutes is amended to read:
196.491 (2) (a) 3. Identify the location of proposed and alternative specific sites for all bulk electric generating facilities and all and describe large electric generating facilities over 200,000 kilowatts for which a certificate of public convenience and necessity has not been applied for under sub. (3) but the commencement of whose construction is planned within 3 years, or such longer period as the commission deems necessary and indicate the impacts of the proposed and alternative generating facilities on the environment and the means by which potential adverse effects on such values will be avoided or minimized; on which an electric utility plans to commence construction within 3 years.
204,43 Section 43. 196.491 (2) (a) 3g. of the statutes is created to read:
196.491 (2) (a) 3g. Assess the adequacy and reliability of purchased generation capacity and energy to serve the needs of the public.
204,44 Section 44. 196.491 (2) (a) 3m. of the statutes is amended to read:
196.491 (2) (a) 3m. Identify the location of tentative and alternative routes for and describe high-voltage transmission lines on which an electric utility plans to commence construction is intended to be commenced in the succeeding 18 months and indicate the effects of such transmission lines on the environment and the means by which potential adverse effects will be avoided or minimized; within 3 years.
204,45 Section 45. 196.491 (2) (a) 3r. of the statutes is created to read:
196.491 (2) (a) 3r. Identify and describe any plans for assuring that there is an adequate ability to transfer electric power into the state and the transmission area, as defined in s. 196.485 (1) (g), in a reliable manner.
204,46 Section 46. 196.491 (2) (a) 4. of the statutes is amended to read:
196.491 (2) (a) 4. Indicate in detail Identify and describe the projected demand for electric energy and the basis for determining the projected demand;.
204,47 Section 47. 196.491 (2) (a) 5. and 6. of the statutes are repealed.
204,48 Section 48. 196.491 (2) (a) 7. of the statutes is amended to read:
196.491 (2) (a) 7. Identify and describe existing and planned programs and policies activities to discourage inefficient and excessive power use; and.
204,49 Section 49. 196.491 (2) (a) 8. of the statutes is repealed.
204,50 Section 50. 196.491 (2) (a) 9. to 13. of the statutes are created to read:
196.491 (2) (a) 9. Identify and describe existing and planned generating facilities that use renewable sources of energy.
10. Consider the public interest in economic development, public health and safety, protection of the environment and diversification of sources of energy supplies.
11. Assess the extent to which the regional bulk-power market is contributing to the adequacy and reliability of the state's electrical supply.
12. Assess the extent to which effective competition is contributing to a reliable, low-cost and environmentally sound source of electricity for the public.
13. Assess whether sufficient electric capacity and energy will be available to the public at a reasonable price.
204,51 Section 51. 196.491 (2) (ag) of the statutes is created to read:
196.491 (2) (ag) The commission shall promulgate rules that establish procedures and requirements for reporting information that is necessary for the commission to prepare strategic energy assessments under par. (a).
204,52 Section 52. 196.491 (2) (am) of the statutes is renumbered 196.491 (2r) and amended to read:
196.491 (2r) (title) Local ordinances. No local ordinance may prohibit or restrict testing activities undertaken by a an electric utility for purposes of preparing advance plans or determining the suitability of a site for the placement of a facility. Any local unit of government objecting to such testing may petition the commission to impose reasonable restrictions on such activity.
204,53 Section 53. 196.491 (2) (b) (intro.) of the statutes is repealed and recreated to read:
196.491 (2) (b) (intro.) On or before July 1, 2000, and on or before July 1 of each even-numbered year thereafter, the commission shall issue a draft of the biennial strategic energy assessment that it prepares under par. (a) to each of the following:
204,54 Section 54. 196.491 (2) (b) 8. of the statutes is amended to read:
196.491 (2) (b) 8. The lower Wisconsin state riverway board if the plan draft includes an assessment of the construction, modification or relocation of a high-voltage transmission line, as defined in s. 30.40 (3r), that is located in the lower Wisconsin riverway as defined in s. 30.40 (15).
204,55 Section 55. 196.491 (2) (b) 9. and 10. of the statutes are created to read:
196.491 (2) (b) 9. Each person that is required to report information to the commission under the rules promulgated under par. (ag).
10. The clerk of each city, village, town and county that, as determined by the commission, is affected by the assessment.
204,56 Section 56. 196.491 (2) (c) and (d) of the statutes are repealed.
204,57 Section 57. 196.491 (2) (e) of the statutes is amended to read:
196.491 (2) (e) Any state agency, as defined in s. 16.375 (1), county, municipality, town or person may submit written comments on any plan to the commission on a strategic energy assessment within 180 90 days after the plan is filed copies of the draft are issued under par. (b).
204,58 Section 58. 196.491 (2) (f) of the statutes is amended to read:
196.491 (2) (f) Because the planning process for facilities siting otherwise incorporates consideration and analysis of environmental impact, s. Section 1.11 (2) (c) shall not apply to advance plans a strategic energy assessment prepared under par. (a) but the commission shall prepare a single environmental assessment on all plans submitted for approval under par. (a) the strategic energy assessment, which shall include a discussion of generic issues related thereto. Such and environmental impacts. The commission shall make the environmental assessment shall be made available to the public at least 30 days prior to the hearing under par. (g). The assessment on the plans is different from an environmental impact statement on a particular facility in that it need not identify the environmental effects of proposed sites for facilities in the plan with the same degree of detail as is required when a particular facility is considered for a certificate of public convenience and necessity under sub. (3). The assessment need not repeat information included in an assessment prepared for a plan submitted under par. (a) on a prior reporting date and with respect to which no material additional data is required or as to which there has been no material change in circumstances. Applicable portions of such assessment may be included by reference in any environmental impact statement prepared by the commission, including a statement prepared in connection with the consideration of an application for a certificate of public convenience and necessity under sub. (3).
204,59 Section 59. 196.491 (2) (g) of the statutes, as affected by 1997 Wisconsin Act 35, is amended to read:
196.491 (2) (g) Within 180 No sooner than 30 and no later than 90 days after the plan is filed copies of the draft are issued under par. (b), the commission shall hold a hearing thereon on the draft which may not be a hearing under s. 227.42 or 227.44. The hearing shall be held in an administrative district, established by executive order 22, issued August 24, 1970, which the commission determines will be significantly affected by facilities proposed in the plan to be constructed in the following on which an electric utility plans to commence construction within 3 years. The commission may thereafter adjourn the hearing to other locations or may conduct the hearing by interactive video conference or other electronic method. Notice of such hearing shall be given by class 1 notice, under ch. 985, published in the official state newspaper and such other regional papers of general circulation as may be designated by the commission. At such hearing the commission shall briefly describe the plan strategic energy assessment and give all interested persons an opportunity, subject to reasonable limitations on the presentation of repetitious material, to express their views on any aspect of the plan. The presentation of such views need not be under oath nor subject to cross-examination. The commission shall advise all persons present of their right to express their views orally or in writing, under oath or otherwise, and of the legal effect of each such form of testimony strategic energy assessment. A record of unsworn testimony the hearing shall be made and considered by the commission as comments on the plan strategic energy assessment under par. (e). Persons presenting such views shall not be parties. The utility, any state agency, county, municipality, town, or any person whose substantial rights may be adversely affected by the testing for or construction of facilities described in an advance plan, shall, upon filing written notice setting forth its interest at least 10 days in advance, be afforded all the rights of a party in a contested case.
204,60 Section 60. 196.491 (2) (gm) of the statutes is created to read:
196.491 (2) (gm) Based on comments received on a draft, the commission shall prepare a final strategic energy assessment within 90 days after a hearing under par. (g). The commission shall provide copies of the final strategic energy assessment to any state agency, county, municipality, town or other person who submitted comments on the draft under par. (e) and to the persons specified in par. (b).
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