AB940, s. 69 13Section 69. 196.491 (3) (d) 1. of the statutes is repealed.
AB940, s. 70 14Section 70. 196.491 (3) (d) 2. of the statutes is amended to read:
AB940,31,1715 196.491 (3) (d) 2. The proposed facility is necessary to satisfy satisfies the
16reasonable needs of the public for an adequate supply of electric energy. This
17subdivision does not apply to a wholesale merchant plant.
AB940, s. 71 18Section 71. 196.491 (3) (d) 3. of the statutes is amended to read:
AB940,32,219 196.491 (3) (d) 3. The design and location or route is in the public interest
20considering alternative sources of supply, alternative locations or routes, individual
21hardships, engineering, economic, safety, reliability and environmental factors,
22except that the commission may not consider alternative sources of supply or
23engineering or economic factors if the application is for a wholesale merchant plant
.
24In its consideration of environmental factors, the commission may not determine

1that the design and location or route is not in the public interest because of the impact
2of air pollution if the proposed facility will meet the requirements of ch. 285.
AB940, s. 72 3Section 72. 196.491 (3) (d) 7. of the statutes is created to read:
AB940,32,54 196.491 (3) (d) 7. The proposed facility will not have a material adverse impact
5on competition in the relevant wholesale electric service market.
AB940, s. 73 6Section 73. 196.491 (3) (e) of the statutes is amended to read:
AB940,32,137 196.491 (3) (e) If the application does not meet the criteria under par. (d), the
8commission shall reject the application or approve the application with such
9modifications as are necessary for an affirmative finding under par. (d). The
10commission may not issue a certificate of public convenience and necessity until the
11department has issued all permits and approvals designated under sub. (2m) as
12necessary prior to the issuance of the certificate of public convenience and necessity

13identified in the listing specified in par. (a) 3. a.
AB940, s. 74 14Section 74. 196.491 (3) (f) and (ff) of the statutes are repealed.
AB940, s. 75 15Section 75. 196.491 (3) (g) (intro.) and 1. of the statutes are consolidated,
16renumbered 196.491 (3) (g) 1. and amended to read:
AB940,33,317 196.491 (3) (g) 1. The commission shall take final action on the an application
18within: 1. 180 days after the application under this subsection for large electric
19generating facilities or high-voltage transmission lines
is determined or considered
20to be complete under par. (a) 2. If the commission fails to take final action within the
21180-day period, the commission is considered to have issued a certificate of public
22convenience and necessity with respect to the application, unless the commission,
23within the 180-day period, petitions the circuit court for Dane County for an
24extension of time for taking final action on the application and the court grants an
25extension. Upon a showing of good cause, the court may extend the 180-day period

1for no more than an additional 180 days . If the commission fails to take final action
2within the extended period, the commission is considered to have issued a certificate
3of public convenience and necessity with respect to the application
.
AB940, s. 76 4Section 76. 196.491 (3) (g) 1m. of the statutes is created to read:
AB940,33,75 196.491 (3) (g) 1m. Subdivision 1. does not apply to an application for a
6certificate of public convenience and necessity if another state is also taking action
7on the same or a related application.
AB940, s. 77 8Section 77. 196.491 (3) (g) 2. of the statutes is repealed.
AB940, s. 78 9Section 78. 196.491 (3) (hm) of the statutes is repealed:
AB940, s. 79 10Section 79. 196.491 (3) (j) of the statutes is amended to read:
AB940,33,1511 196.491 (3) (j) Any person whose substantial rights may be adversely affected
12or any county, municipality or town having jurisdiction over land affected by an
13advance plan or
a certificate of public convenience and necessity may petition for
14judicial review, under ch. 227, of any decision of the commission regarding the
15advance plan or
the certificate.
AB940, s. 80 16Section 80. 196.491 (3) (k) of the statutes is amended to read:
AB940,33,2517 196.491 (3) (k) No person may purchase, or acquire an option to purchase, any
18interest in real property knowing that such property is being purchased to be used
19for the construction of a high-voltage transmission line unless the person gives
20written notice to the prospective seller of the size, maximum voltage and structure
21type of any transmission line planned to be constructed thereon and the electric
22utility by whom it will be operated. Contracts made in violation of this paragraph
23are subject to rescission by the seller at any time prior to the issuance of a certificate
24of public convenience and necessity for the facility high-voltage transmission line by
25the commission.
AB940, s. 81
1Section 81. 196.491 (3m) of the statutes is created to read:
AB940,34,62 196.491 (3m) Wholesale merchant plants. (a) Commission approval
3required.
Except as provided in par. (e), an affiliated interest of a public utility may
4not own, control or operate a wholesale merchant plant without the approval of the
5commission. The commission shall grant its approval only if each of the following is
6satisfied:
AB940,34,117 1. The public utility has transferred control over its transmission facilities, as
8defined in s. 196.485 (1) (h), to an independent system operator, as defined in s.
9196.485 (1) (d), that is approved by the federal energy regulatory commission or the
10public utility has divested its interest in the transmission facilities to an
11independent transmission owner, as defined in s. 196.485 (1) (dm).
AB940,34,1412 2. The commission finds that the ownership, control or operation will not have
13a substantial anticompetitive effect on electricity markets for any classes of
14customers.
AB940,34,1715 (b) Duty to promulgate rules. 1. The commission shall promulgate rules that
16establish requirements and procedures for an affiliated interest to apply for an
17approval under par. (a). The rules shall do each of the following:
AB940,34,1918 a. Describe the showing that an applicant is required to make for the
19commission to grant an approval under par. (a).
AB940,34,2220 b. Describe the analytical process that the commission shall use in determining
21whether to make a finding under par. (a) 2. and describe the factors specified in subd.
223.
AB940,34,2423 c. Allow an interested person to request a hearing on an application under s.
24227.42.
AB940,35,4
12. The analytical process specified in subd. 1. b. shall, to the extent practicable,
2be consistent with the analytical process described in the enforcement policy of the
3federal department of justice and the federal trade commission regarding horizontal
4acquisitions and mergers that are subject to 15 USC 1, 18 or 45.
AB940,35,65 3. The commission shall use the following factors in determining whether to
6make a finding under par. (a) 2.:
AB940,35,87 a. The degree of market concentration resulting from the affiliated interest's
8proposed ownership, operation or control.
AB940,35,109 b. The extent of control that the affiliated interest proposes to exercise over the
10wholesale merchant plant.
AB940,35,1211 d. Any other factor that the commission determines is necessary to determine
12whether to make a finding under par. (a) 2.
AB940,35,1313 (c) Sales by affiliated interests. 1. In this paragraph:
AB940,35,1514 a. "Electric sale" means a sale of electricity that is generated at a wholesale
15merchant plant that is owned, operated or controlled by an affiliated interest.
AB940,35,1816 b. "Firm sale" means an electric sale in which electricity is intended to be
17available to a purchaser at all times during a specified period on an uninterruptible
18basis.
AB940,35,2219 2. The commission shall review any electric sale by an affiliated interest to a
20public utility with which the affiliated interest is affiliated. If the commission finds
21that an electric sale is not in the public interest, the commission shall do any of the
22following:
AB940,35,2423 a. Disallow the public utility's costs related to the sale in a rate-setting
24proceeding.
AB940,36,2
1b. Order the public utility to provide a refund, in an amount determined by the
2commission, to its customers.
AB940,36,53 c. Order the public utility or affiliated interest to take any action that the
4commission determines is in the public interest, except that the commission may not
5order the public utility or affiliated interest to void the sale.
AB940,36,76 3. An affiliated interest may not make any firm sale to a public utility with
7which the affiliated interest is affiliated if the firm sale satisfies any of the following:
AB940,36,88 a. The period of the firm sale is 3 years or more.
AB940,36,109 b. The period of the firm sale is less than 3 years and either the public utility
10or the affiliated interest has an option to extend the period to 3 years or more.
AB940,36,1311 (d) Retail sales outside this state. The commission may not promulgate rules
12or issue orders that prohibit owners or operators of wholesale merchant plants from
13providing electric service to retail customers in another state.
AB940,36,1714 (e) Exemption. An approval under par. (a) is not required for an affiliated
15interest to own, operate or control a wholesale merchant plant in Grant County if the
16affiliated interest owned, operated or controlled the wholesale merchant plant before
17January 1, 1998.
AB940, s. 82 18Section 82. 196.491 (4) (a) (intro.) of the statutes, as created by 1997 Wisconsin
19Act 27
, is repealed.
AB940, s. 83 20Section 83. 196.491 (4) (a) 1. and 2. of the statutes, as created by 1997
21Wisconsin Act 27
, are renumbered 196.491 (4) (b) 1. and 2.
AB940, s. 84 22Section 84. 196.491 (4) (a) 3. of the statutes, as created by 1997 Wisconsin Act
2327
, is repealed.
AB940, s. 85 24Section 85. 196.491 (4) (b) of the statutes, as created by 1997 Wisconsin Act
2527
, is renumbered 196.491 (4) (b) (intro.) and amended to read:
AB940,37,3
1196.491 (4) (b) (intro.) Subsection (3) does not apply to a person that constructs
2electric generating equipment and associated facilities if the person satisfies the
3requirements specified in par. (a) 1. and 2.
each of the following:
AB940, s. 86 4Section 86. 196.491 (4) (c) of the statutes is created to read:
AB940,37,85 196.491 (4) (c) A certificate under sub. (3) is not required for a person to
6construct a high-voltage transmission line designed for operation at a nominal
7voltage of less than 230 kilovolts if all related construction activity takes place
8entirely within the area of an existing electric transmission line right-of-way.
AB940, s. 87 9Section 87. 196.491 (5) of the statutes is created to read:
AB940,37,1210 196.491 (5) Service standards for electric generation, transmission and
11distribution facilities.
The commission shall promulgate rules that establish all of
12the following:
AB940,37,1313 (a) Standards for inspecting, maintaining and repairing each of the following:
AB940,37,1514 1. Electric generation facilities that are owned by electric utilities or provide
15service to electric utilities under contracts with terms of 5 years or more.
AB940,37,1716 2. Electric transmission or distribution facilities that are owned by electric
17utilities.
AB940,37,1918 (b) Standards that the commission determines are necessary for the safe and
19reliable operation of each of the following:
AB940,37,2120 1. Electric generation facilities that are owned by electric utilities or provide
21service to electric utilities under contracts with terms of 5 years or more.
AB940,37,2322 2. Electric transmission or distribution facilities that are owned by electric
23utilities.
AB940, s. 88 24Section 88. 196.492 of the statutes is repealed.
AB940, s. 89 25Section 89. 196.493 (1) of the statutes is amended to read:
AB940,38,3
1196.493 (1) Definition. In this section, "nuclear power plant" means a
2nuclear-fired large electric generating facility as defined under s. 196.491 (1) (g) or
3a nuclear-fired bulk electric generating facility as defined under s. 196.491 (1) (a)
.
AB940, s. 90 4Section 90. 196.493 (2) (intro.) of the statutes is amended to read:
AB940,38,85 196.493 (2) Limits on certification. (intro.) The commission may not certify
6under s. 196.49 (3) (b) or 196.491 (3) any nuclear power plant and may not approve
7under s. 196.491 (2) any plan which includes a nuclear power plant
unless the
8commission finds that:
AB940, s. 91 9Section 91. 196.494 of the statutes is created to read:
AB940,38,10 10196.494 Regional transmission planning. (1) In this section:
AB940,38,1311 (a) "Electric utility" means a public utility, other than a municipal utility, as
12defined in s. 196.377 (2) (a) 3., that provides retail electric service to customers in this
13state.
AB940,38,1614 (b) "Transmission facility" means any pipe, pipeline, duct, wire, line, conduit,
15pole, tower, equipment or other structure used for the transmission of electric power
16as determined by the commission.
AB940,38,21 17(2) The commission shall conduct a study on identifying and relieving any
18constraint on an intrastate or interstate electric transmission system that adversely
19affects the reliability of transmission service provided to electric customers in this
20state and shall, no later than September 1, 1998, submit a report on the results of
21the study to the legislature in the manner provided under s. 13.172 (2).
AB940,39,7 22(3) No later than December 31, 2004, the commission may, under this
23subsection, issue an order requiring an electric utility to construct or procure, on a
24competitive basis, the construction of transmission facilities specified by the
25commission in its order if the commission determines that, based on the results of

1the study under sub. (2), such construction is necessary to relieve a constraint on a
2transmission system and the construction will materially benefit the customers of
3the electric utility or other electric utilities or of an independent system operator, as
4defined in s. 196.485 (1) (d), or independent transmission owner, as defined in s.
5196.485 (1) (dm). Notwithstanding s. 196.49 or 196.491 (3), the commission may, in
6an order issued under this subsection, waive any requirement in s. 196.49 or 196.491
7(3) that would otherwise apply to the construction that the commission orders.
AB940,39,10 8(4) The commission shall allow an electric utility to recover in its retail electric
9rates any costs that are prudently incurred by the utility in complying with an order
10under sub. (2).
AB940, s. 92 11Section 92. 196.53 of the statutes is amended to read:
AB940,39,19 12196.53 Franchise, foreign corporation not to have. No license, permit or
13franchise to own, operate, manage or control any plant or equipment for the
14production, transmission, delivery or furnishing of heat, light, water or power may
15be granted or transferred to a foreign corporation. This section does not apply to an
16independent system operator, as defined in s. 196.485 (1) (d), or an independent
17transmission owner, as defined in s. 196.485 (1) (dm), that is approved by the
18applicable federal agency, as defined in s. 196.485 (1) (c), and that controls
19transmission facilities, as defined in s. 196.485 (1) (h), in this and another state.
AB940, s. 93 20Section 93. 196.795 (5) (pm) of the statutes is created to read:
AB940,39,2121 196.795 (5) (pm) 1. In this paragraph:
AB940,40,222 a. "Foreign affiliate" means a person that is engaged in the production,
23transmission, delivery or furnishing of heat, light, power or natural gas either
24directly or indirectly to or for use of the public in another state, that is incorporated
25under the laws of another state, that is an affiliated interest, as defined in s. 196.52

1(1), of a public utility and that is operated on an integrated system basis, as
2determined by the commission, with the public utility.
AB940,40,73 b. "Reliability council area" means the geographic area within the state that,
4on December 31, 1997, was served by the Mid-America Interconnected Network,
5Inc., Mid-Continent Area Power Pool, East Central Area Reliability Coordination
6Agreement or Southwest Power Pool reliability council of the North American
7Electric Reliability Council.
AB940,40,138 c. "Wholesale merchant plant" means a wholesale merchant plant, as defined
9in s. 196.491 (1) (w), that is located in the reliability council area and that is owned,
10operated or controlled by an affiliated interest of a public utility that has received the
11approval of the commission under s. 196.491 (3m) (a) for such ownership, operation
12or control or that is exempt under s. 196.491 (3m) (e) from the requirement to obtain
13such approval.
AB940,40,1614 2. The assets of an eligible wholesale merchant plant shall not be included in
15the sum of the assets of a public utility affiliate under par. (p) 1. a., b. or c. and shall
16not be included in a nonutility affiliate's total assets under par. (p) 2. a.
AB940,40,1917 3. The assets of a foreign affiliate shall be included in the sum of the assets of
18a public utility affiliate under par. (p) 1. a., b. or c. and shall not be included in a
19nonutility affiliate's total assets under par. (p) 2. a.
AB940, s. 94 20Section 94. 196.795 (7) (a) 1. b. of the statutes is amended to read:
AB940,40,2321 196.795 (7) (a) 1. b. Any public utility or member of a cooperative association
22organized under ch. 185 which files or has filed a plan under reports or has reported
23information to the commission under the rules promulgated under
s. 196.491 (2) (ag).
AB940, s. 95 24Section 95. 289.29 (5) of the statutes is amended to read:
AB940,41,7
1289.29 (5) Issuance of final determination of feasibility in certain
2situations involving utilities and mining.
If a determination of feasibility is
3required under s. 196.491 (2m) identified in the listing specified in s. 196.491 (3) (a)
43. a.
, the issuance of a final determination of feasibility is subject to the time limits
5limit under s. 196.491 (3) (f) and (ff) (a) 3. b. If a determination of feasibility is
6required under s. 293.43, the issuance of a final determination of feasibility is subject
7to the time limits under s. 293.45 (2) or 293.49, whichever is applicable.
AB940, s. 96 8Section 96. Nonstatutory provisions.
AB940,41,99 (1) Requests for proposals for electric generation capacity.
AB940,41,1010 (a) In this subsection:
AB940,41,13 111. "Certificate" means a certificate issued by the commission under section
12196.49 of the statutes or under section 196.491 (3) of the statutes, as affected by this
13act.
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