SB534, s. 66
14Section
66. 196.491 (3) (a) 3. b. of the statutes is created to read:
SB534,31,515
196.491
(3) (a) 3. b. Within 20 days after the department provides a listing
16specified in subd. 3. a. to a person, the person shall apply for the permits and
17approvals identified in the listing. The department shall determine whether an
18application under this subd. 3. b. is complete and, no later than 30 days after the
19application is filed, notify the applicant about the determination. If the department
20determines that the application is incomplete, the notice shall state the reason for
21the determination. An applicant may supplement and refile an application that the
22department has determined to be incomplete. There is no limit on the number of
23times that an applicant may refile an application under this subd. 3. b. If the
24department fails to determine whether an application is complete within 30 days
25after the application is filed, the application shall be considered to be complete. The
1department shall complete action on an application under this subd. 3. b. within 90
2days after the date on which the application is determined or considered to be
3complete. If the department fails to take final action within the 90-day period, the
4department is considered to have issued the permits and approvals identified in the
5listing.
SB534, s. 67
6Section
67. 196.491 (3) (b) of the statutes is amended to read:
SB534,31,107
196.491
(3) (b) The commission shall hold a public hearing on
the an 8application
that is determined or considered to be complete in the area affected
9pursuant to s. 227.44. A class 1 notice, under ch. 985, shall be given at least 30 days
10prior to the hearing.
SB534, s. 68
11Section
68. 196.491 (3) (d) (intro.) of the statutes is amended to read:
SB534,31,1512
196.491
(3) (d) (intro.) Except as provided under
par. (e) and s. 196.493, the
13commission shall approve an application for a certificate of public convenience and
14necessity
shall be approved only if the commission determines
that all of the
15following:
SB534, s. 69
16Section
69. 196.491 (3) (d) 1. of the statutes is repealed.
SB534, s. 70
17Section
70. 196.491 (3) (d) 2. of the statutes is amended to read:
SB534,31,2018
196.491
(3) (d) 2. The proposed facility
is necessary to satisfy satisfies the
19reasonable needs of the public for an adequate supply of electric energy.
This
20subdivision does not apply to a wholesale merchant plant.
SB534, s. 71
21Section
71. 196.491 (3) (d) 3. of the statutes is amended to read:
SB534,32,422
196.491
(3) (d) 3. The design and location or route is in the public interest
23considering alternative sources of supply, alternative locations or routes, individual
24hardships, engineering, economic, safety, reliability and environmental factors
,
25except that the commission may not consider alternative sources of supply or
1engineering or economic factors if the application is for a wholesale merchant plant.
2In its consideration of environmental factors, the commission may not determine
3that the design and location or route is not in the public interest because of the impact
4of air pollution if the proposed facility will meet the requirements of ch. 285.
SB534, s. 72
5Section
72. 196.491 (3) (d) 7. of the statutes is created to read:
SB534,32,76
196.491
(3) (d) 7. The proposed facility will not have a material adverse impact
7on competition in the relevant wholesale electric service market.
SB534, s. 72m
8Section 72m. 196.491 (3) (dm) of the statutes is created to read:
SB534,32,119
196.491
(3) (dm) In making a determination required under par. (d), the
10commission may not consider a factual conclusion in a strategic energy assessment
11unless the conclusion is independently corroborated in the hearing under par. (b).
SB534, s. 73
12Section
73. 196.491 (3) (e) of the statutes is amended to read:
SB534,32,1913
196.491
(3) (e) If the application does not meet the criteria under par. (d), the
14commission shall reject the application or approve the application with such
15modifications as are necessary for an affirmative finding under par. (d). The
16commission may not issue a certificate of public convenience and necessity until the
17department has issued all permits and approvals
designated under sub. (2m) as
18necessary prior to the issuance of the certificate of public convenience and necessity 19identified in the listing specified in par. (a) 3. a.
SB534, s. 74
20Section
74. 196.491 (3) (f) and (ff) of the statutes are repealed.
SB534, s. 75
21Section
75. 196.491 (3) (g) (intro.) and 1. of the statutes are consolidated,
22renumbered 196.491 (3) (g) 1. and amended to read:
SB534,33,923
196.491
(3) (g) 1. The commission shall take final action on
the an application
24within
: 1. 180 days after
the application
under this subsection for large electric
25generating facilities or high-voltage transmission lines is determined or considered
1to be complete under par. (a) 2. If the commission fails to take final action within the
2180-day period, the commission is considered to have issued a certificate of public
3convenience and necessity with respect to the application, unless the commission,
4within the 180-day period, petitions the circuit court for Dane County for an
5extension of time for taking final action on the application and the court grants an
6extension. Upon a showing of good cause, the court may extend the 180-day period
7for no more than an additional 180 days . If the commission fails to take final action
8within the extended period, the commission is considered to have issued a certificate
9of public convenience and necessity with respect to the application.
SB534, s. 76
10Section
76. 196.491 (3) (g) 1m. of the statutes is created to read:
SB534,33,1311
196.491
(3) (g) 1m. Subdivision 1. does not apply to an application for a
12certificate of public convenience and necessity if another state is also taking action
13on the same or a related application.
SB534, s. 77
14Section
77. 196.491 (3) (g) 2. of the statutes is repealed.
SB534, s. 78
15Section
78. 196.491 (3) (hm) of the statutes is repealed:
SB534, s. 79
16Section
79. 196.491 (3) (j) of the statutes is amended to read:
SB534,33,2117
196.491
(3) (j) Any person whose substantial rights may be adversely affected
18or any county, municipality or town having jurisdiction over land affected by
an
19advance plan or a certificate of public convenience and necessity may petition for
20judicial review, under ch. 227, of any decision of the commission regarding
the
21advance plan or the certificate.
SB534, s. 80
22Section
80. 196.491 (3) (k) of the statutes is amended to read:
SB534,34,623
196.491
(3) (k) No person may purchase
, or acquire an option to purchase, any
24interest in real property knowing that such property is being purchased to be used
25for the construction of a high-voltage transmission line unless the person gives
1written notice to the prospective seller of the size, maximum voltage and structure
2type of any transmission line planned to be constructed thereon and the electric
3utility by whom it will be operated. Contracts made in violation of this paragraph
4are subject to rescission by the seller at any time prior to the issuance of a certificate
5of public convenience and necessity for the
facility
high-voltage transmission line by
6the commission.
SB534, s. 81
7Section
81. 196.491 (3m) of the statutes is created to read:
SB534,34,128
196.491
(3m) Wholesale merchant plants. (a)
Commission approval
9required. Except as provided in par. (e), an affiliated interest of a public utility may
10not own, control or operate a wholesale merchant plant without the approval of the
11commission. The commission shall grant its approval only if each of the following is
12satisfied:
SB534,34,1713
1. The public utility has transferred control over its transmission facilities, as
14defined in s. 196.485 (1) (h), to an independent system operator, as defined in s.
15196.485 (1) (d), that is approved by the federal energy regulatory commission or the
16public utility has divested its interest in the transmission facilities to an
17independent transmission owner, as defined in s. 196.485 (1) (dm).
SB534,34,2018
2. The commission finds that the ownership, control or operation will not have
19a substantial anticompetitive effect on electricity markets for any classes of
20customers.
SB534,34,2321
(b)
Duty to promulgate rules. 1. The commission shall promulgate rules that
22establish requirements and procedures for an affiliated interest to apply for an
23approval under par. (a). The rules shall do each of the following:
SB534,34,2524
a. Describe the showing that an applicant is required to make for the
25commission to grant an approval under par. (a).
SB534,35,5
1am. Establish screening tests and safe harbors for proposed wholesale
2merchant plant projects, including projects in which an affiliated interest is a passive
3investor and over which the affiliated interest is not able to exercise control or
4influence and projects in which an affiliated interest's ownership interest is less than
55%.
SB534,35,86
b. Describe the analytical process that the commission shall use in determining
7whether to make a finding under par. (a) 2. and describe the factors specified in subd.
83.
SB534,35,109
c. Allow an interested person to request a hearing on an application under s.
10227.42.
SB534,35,1411
2. The analytical process specified in subd. 1. b. shall, to the extent practicable,
12be consistent with the analytical process described in the enforcement policy of the
13federal department of justice and the federal trade commission regarding horizontal
14acquisitions and mergers that are subject to
15 USC 1,
18 or
45.
SB534,35,1615
3. The commission shall use the following factors in determining whether to
16make a finding under par. (a) 2.:
SB534,35,1817
a. The degree of market concentration resulting from the affiliated interest's
18proposed ownership, operation or control.
SB534,35,2019
b. The extent of control that the affiliated interest proposes to exercise over the
20wholesale merchant plant.
SB534,35,2221
d. Any other factor that the commission determines is necessary to determine
22whether to make a finding under par. (a) 2.
SB534,35,2323
(c)
Sales by affiliated interests. 1. In this paragraph:
SB534,35,2524
a. "Electric sale" means a sale of electricity that is generated at a wholesale
25merchant plant that is owned, operated or controlled by an affiliated interest.
SB534,36,3
1b. "Firm sale" means an electric sale in which electricity is intended to be
2available to a purchaser at all times during a specified period on an uninterruptible
3basis.
SB534,36,74
2. The commission shall review any electric sale by an affiliated interest to a
5public utility with which the affiliated interest is affiliated. If the commission finds
6that an electric sale is not in the public interest, the commission shall do any of the
7following:
SB534,36,98
a. Disallow the public utility's costs related to the sale in a rate-setting
9proceeding.
SB534,36,1110
b. Order the public utility to provide a refund, in an amount determined by the
11commission, to its customers.
SB534,36,1412
c. Order the public utility or affiliated interest to take any action that the
13commission determines is in the public interest, except that the commission may not
14order the public utility or affiliated interest to void the sale.
SB534,36,1615
3. An affiliated interest may not make any firm sale to a public utility with
16which the affiliated interest is affiliated if the firm sale satisfies any of the following:
SB534,36,1717
a. The period of the firm sale is 3 years or more.
SB534,36,1918
b. The period of the firm sale is less than 3 years and either the public utility
19or the affiliated interest has an option to extend the period to 3 years or more.
SB534,36,2220
(d)
Retail sales outside this state. The commission may not promulgate rules
21or issue orders that prohibit owners or operators of wholesale merchant plants from
22providing electric service to retail customers in another state.
SB534,37,223
(e)
Exemption. An approval under par. (a) is not required for an affiliated
24interest to own, operate or control a wholesale merchant plant in Grant County if the
1affiliated interest owned, operated or controlled the wholesale merchant plant before
2January 1, 1998.
SB534,37,1311
196.491
(4) (b) (intro.) Subsection (3) does not apply to a person that constructs
12electric generating equipment and associated facilities if the person satisfies
the
13requirements specified in par. (a) 1. and 2. each of the following:
SB534, s. 86
14Section
86. 196.491 (4) (c) of the statutes is created to read:
SB534,37,1815
196.491
(4) (c) A certificate under sub. (3) is not required for a person to
16construct a high-voltage transmission line designed for operation at a nominal
17voltage of less than 230 kilovolts if all related construction activity takes place
18entirely within the area of an existing electric transmission line right-of-way.
SB534, s. 87
19Section
87. 196.491 (5) of the statutes is created to read:
SB534,37,2220
196.491
(5) Service standards for electric generation, transmission and
21distribution facilities. The commission shall promulgate rules that establish all of
22the following:
SB534,37,2323
(a) Standards for inspecting, maintaining and repairing each of the following:
SB534,37,2524
1. Electric generation facilities in this state that are owned by public utilities
25or provide service to public utilities under contracts with terms of 5 years or more.
SB534,38,2
12. Electric transmission or distribution facilities in this state that are owned
2by public utilities.
SB534,38,43
(b) Standards that the commission determines are necessary for the safe and
4reliable operation of each of the following:
SB534,38,65
1. Electric generation facilities in this state that are owned by public utilities
6or provide service to public utilities under contracts with terms of 5 years or more.
SB534,38,87
2. Electric transmission or distribution facilities in this state that are owned
8by public utilities.
SB534, s. 88
9Section
88. 196.492 of the statutes is repealed.
SB534, s. 89
10Section
89. 196.493 (1) of the statutes is amended to read:
SB534,38,1311
196.493
(1) Definition. In this section, "nuclear power plant" means a
12nuclear-fired large electric generating facility as defined under s. 196.491 (1) (g)
or
13a nuclear-fired bulk electric generating facility as defined under s. 196.491 (1) (a).
SB534, s. 90
14Section
90. 196.493 (2) (intro.) of the statutes is amended to read:
SB534,38,1815
196.493
(2) Limits on certification. (intro.) The commission may not certify
16under s. 196.49 (3) (b) or 196.491 (3) any nuclear power plant
and may not approve
17under s. 196.491 (2) any plan which includes a nuclear power plant unless the
18commission finds that:
SB534, s. 91
19Section
91. 196.494 of the statutes is created to read:
SB534,38,20
20196.494 Regional transmission planning.
(1) In this section:
SB534,38,2321
(a) "Electric utility" means a public utility, other than a municipal utility, as
22defined in s. 196.377 (2) (a) 3., that provides retail electric service to customers in this
23state.
SB534,39,3
1(b) "Transmission facility" means any pipe, pipeline, duct, wire, line, conduit,
2pole, tower, equipment or other structure used for the transmission of electric power
3as determined by the commission.
SB534,39,8
4(2) The commission shall conduct a study on identifying and relieving any
5constraint on an intrastate or interstate electric transmission system that adversely
6affects the reliability of transmission service provided to electric customers in this
7state and shall, no later than September 1, 1998, submit a report on the results of
8the study to the legislature in the manner provided under s. 13.172 (2).
SB534,39,17
9(3) No later than December 31, 2004, the commission may, under this
10subsection, issue an order requiring an electric utility to construct or procure, on a
11competitive basis, the construction of transmission facilities specified by the
12commission in its order if the commission determines that, based on the results of
13the study under sub. (2), such construction is necessary to relieve a constraint on a
14transmission system and the construction will materially benefit the customers of
15the electric utility or other electric utilities or of an independent system operator, as
16defined in s. 196.485 (1) (d), or independent transmission owner, as defined in s.
17196.485 (1) (dm).
SB534,39,20
18(4) The commission shall allow an electric utility to recover in its retail electric
19rates any costs that are prudently incurred by the utility in complying with an order
20under sub. (3).
SB534, s. 92
21Section
92. 196.53 of the statutes is amended to read:
SB534,40,4
22196.53 Franchise, foreign corporation not to have. No license, permit or
23franchise to own, operate, manage or control any plant or equipment for the
24production, transmission, delivery or furnishing of heat, light, water or power may
25be granted or transferred to a foreign corporation.
This section does not apply to an
1independent system operator, as defined in s. 196.485 (1) (d), or an independent
2transmission owner, as defined in s. 196.485 (1) (dm), that is approved by the
3applicable federal agency, as defined in s. 196.485 (1) (c), and that controls
4transmission facilities, as defined in s. 196.485 (1) (h), in this and another state.
SB534, s. 93
5Section
93. 196.795 (5) (pm) of the statutes is created to read:
SB534,40,66
196.795
(5) (pm) 1. In this paragraph:
SB534,40,127
a. "Foreign affiliate" means a person that is engaged in the production,
8transmission, delivery or furnishing of heat, light, power or natural gas either
9directly or indirectly to or for use of the public in another state, that is incorporated
10under the laws of another state, that is an affiliated interest, as defined in s. 196.52
11(1), of a public utility and that is operated on an integrated system basis, as
12determined by the commission, with the public utility.
SB534,40,1713
b. "Reliability council area" means the geographic area that, on December 31,
141997, was served by the Mid-America Interconnected Network, Inc., Mid-Continent
15Area Power Pool, East Central Area Reliability Coordination Agreement or
16Southwest Power Pool reliability council of the North American Electric Reliability
17Council.
SB534,40,2218
c. "Wholesale merchant plant" means electric generating equipment and
19associated facilities that are located in the reliability council area and that do not
20provide retail service to customers in this state, but does not include any equipment
21or facilities that were subject to regulation as public utility assets under the laws of
22this or another state on December 31, 1997.
SB534,40,2523
2. The assets of an eligible wholesale merchant plant shall not be included in
24the sum of the assets of a public utility affiliate under par. (p) 1. a., b. or c. and shall
25not be included in a nonutility affiliate's total assets under par. (p) 2. a.