AB133-ASA1-CA1,520,2220
196.485
(6) Electric utilities, transmission dependent utilities and retail
21electric cooperatives. (a) No later than the first day of the 12th month beginning
22after the first public utility affiliate files a commitment under sub. (5) (a) 2.:
AB133-ASA1-CA1,521,223
1. An electric utility, other than a public utility affiliate or an owner or operator
24of a wholesale merchant plant, as defined in s. 196.491 (1) (w), may transfer all of its
25transmission facilities that are specified in subd. 2. to the transmission company on
1the same terms and conditions as a contribution of transmission facilities and land
2rights by a public utility affiliate under sub. (5) (b) and (c).
AB133-ASA1-CA1,521,63
2. An electric utility may transfer transmission facilities under subd. 1. if the
4transmission facilities are located in the geographic area that is served by the
5Mid-America Interconnected Network, Inc., or the Mid-Continent Area Power Pool
6reliability council of the North American Electric Reliability Council.
AB133-ASA1-CA1,521,137
3. A transmission-dependent utility or retail electric cooperative may
8purchase equity interests in the transmission company at a price that is equivalent
9to net book value and on terms and conditions that are comparable to those for public
10utility affiliates that have contributed transmission facilities to the transmission
11company. A purchaser under this subdivision may contribute funds to the
12transmission company that are no more than the value of its prorated shares based
13on firm electric usage in this state in 1999.
AB133-ASA1-CA1,521,1614
(b) Notwithstanding sub. (1) (h), and subject to any approval required under
15federal law, for purposes of this subsection, a facility of an electric utility is a
16transmission facility if the criteria specified in sub. (5) (d) 1., 2. or 3. are satisfied.
AB133-ASA1-CA1,521,2218
196.485
(6m) D
ividends, distributions, profits and gains. The commission
19may not treat any dividend or distribution received by a transmission utility from
20the transmission company or any gain or profit of a transmission utility from the sale
21or other disposition of securities issued by the transmission company as a credit
22against the retail revenue requirements of the transmission utility.
AB133-ASA1-CA1,522,3
1196.485
(7) Enforcement. A wholesale or retail customer of a public utility
2affiliate may petition the circuit court for Dane County for specific performance of
3a commitment filed under sub. (5) (a) 2. or 3.
AB133-ASA1-CA1,522,95
196.485
(8) Penalties. A public utility affiliate that fails to complete the
6contribution of transmission facilities to the transmission company by the
7completion date specified in the filing under sub. (5) (a) 2. shall forfeit $25,000 for
8each day that completion of the contribution is delayed if the transmission company
9is legally able to accept the contribution.
AB133-ASA1-CA1,522,11
11196.487 Reliability of electric service. (1) Definitions. In this section:
AB133-ASA1-CA1,522,1212
(a) "Public utility affiliate" has the meaning given in s. 196.795 (1) (L).
AB133-ASA1-CA1,522,1313
(b) "Transmission company" has the meaning given in s. 196.485 (1) (ge).
AB133-ASA1-CA1,522,22
14(2) Commission order. If the commission determines that a public utility
15affiliate or the transmission company is not making investments in the facilities
16under its control that are sufficient to ensure reliable electric service, the commission
17shall order the public utility affiliate or transmission company to make adequate
18investments in its facilities that are sufficient to ensure reliable electric service. An
19order under this subsection shall require the public utility affiliate or transmission
20company to provide security in an amount and form that, to the satisfaction of the
21commission, is sufficient to ensure that the public utility affiliate or transmission
22company expeditiously makes any investment that is ordered.
AB133-ASA1-CA1,522,25
23(3) Cost recovery. The commission shall allow a public utility affiliate that is
24subject to an order under sub. (2) to recover in its retail electric rates the costs that
25are prudently incurred in complying with the order.
AB133-ASA1-CA1,523,62
196.491
(3) (d) 3r. For a high-voltage transmission line that is proposed to
3increase the transmission import capability into this state, existing rights-of-way
4are used to the extent practicable and the routing and design of the high-voltage
5transmission line minimizes environmental impacts in a manner that is consistent
6with achieving reasonable electric rates.
AB133-ASA1-CA1,523,138
196.491
(3) (d) 3t. For a high-voltage transmission line that is designed for
9operation at a nominal voltage of 345 kilovolts or more, the high-voltage
10transmission line provides usage, service or increased regional reliability benefits to
11the wholesale and retail customers or members in this state and the benefits of the
12high-voltage transmission line are reasonable in relation to the cost of the
13high-voltage transmission line.
AB133-ASA1-CA1,524,415
196.491
(3) (gm) The commission may not approve an application filed after the
16effective date of this paragraph .... [revisor inserts date], under this section for a
17certificate of public convenience and necessity for a high-voltage transmission line
18that is designed for operation at a nominal voltage of 345 kilovolts or more unless the
19approval includes the condition that the applicant shall pay the fees specified in sub.
20(3g) (a). If the commission has approved an application under this section for a
21certificate of public convenience and necessity for a high-voltage transmission line
22that is designed for operation at a nominal voltage of 345 kilovolts or more that was
23filed after April 1, 1999, and before the effective date of this paragraph .... [revisor
24inserts date], the commission shall require the applicant to pay the fees specified in
25sub. (3g) (a). For any application subject to this paragraph, the commission shall
1determine the cost of the high-voltage transmission line, identify the counties,
2towns, villages and cities through which the high-voltage transmission line is routed
3and allocate the amount of investment associated with the high-voltage
4transmission line to each such county, town, village and city.
AB133-ASA1-CA1,524,136
196.491
(3g) Fees for certain high-voltage transmission lines. (a) A person
7who receives a certificate of public convenience and necessity for a high-voltage
8transmission line that is designed for operation at a nominal voltage of 345 kilovolts
9or more under sub. (3) shall pay the department of administration an annual impact
10fee as specified in the rules promulgated by the department of administration under
11s. 16.969 (2) (a) and shall pay the department of administration a one-time
12environmental impact fee as specified in the rules promulgated by the department
13of administration under s. 16.969 (2) (b).
AB133-ASA1-CA1,524,1714
(b) A person that pays a fee under par. (a) may not use the payment to offset
15any other mitigation measure that is required in an order by the commission under
16sub. (3) regarding the certificate of public convenience and necessity specified in par.
17(a).
AB133-ASA1-CA1,524,2319
196.491
(3m) (b) 2. The analytical process specified in subd. 1. b. shall, to the
20extent practicable, be consistent with the analytical process described in the
merger 21enforcement policy
of the federal department of justice and the federal trade
22commission regarding horizontal acquisitions and mergers that are subject to 15
23USC 1, 18 or 45, as defined in s. 196.485 (1) (dr).
AB133-ASA1-CA1,525,10
1196.494
(3) No later than December 31, 2004, the The commission
may
shall,
2under this subsection, issue an order requiring
the transmission company, as defined
3in s. 196.485 (1) (ge), or an electric utility to construct or procure, on a competitive
4basis, the construction of transmission facilities specified by the commission in its
5order if the commission determines that
, based on the results of the study under sub.
6(2), such construction is necessary to relieve a constraint on a transmission system
7and the construction will materially benefit the customers of the
transmission
8company or electric utility or other electric utilities or of an independent system
9operator, as defined in s. 196.485 (1) (d), or independent transmission owner, as
10defined in s. 196.485 (1) (dm).
AB133-ASA1-CA1,525,1712
196.494
(5) The governor may, on behalf of this state, enter into an interstate
13compact that establishes a joint process for the states in the upper midwest region
14of the United States to determine the need for and siting of regional electric
15transmission facilities that may affect electric service in this state. The governor
16may not enter into a compact under this subsection unless the compact includes
17requirements and procedures for establishing each of the following:
AB133-ASA1-CA1,525,1918
(a) Compliance with each state's environmental and siting standards for
19transmission facilities.
AB133-ASA1-CA1,525,2020
(b) A regional need determination for transmission facilities.
AB133-ASA1-CA1,525,2221
(c) A mechanism for resolving conflicts between the states regarding the siting
22of transmission facilities.
AB133-ASA1-CA1,527,324
196.52
(3) (a) In this subsection, "contract or arrangement" means a contract
25or arrangement providing for the furnishing of management, supervisory,
1construction, engineering, accounting, legal, financial or similar services and any
2contract or arrangement for the purchase, sale, lease or exchange of any property,
3right, or thing, or for the furnishing of any service, property, right, or thing, other
4than management, supervisory, construction, engineering, accounting, legal,
5financial or similar services
, but "contract or arrangement" does not include a
6contract or arrangement under which a transmission utility, as defined in s. 196.485
7(1) (i), sells or transfers securities, as defined in s. 196.485 (1) (fe), that have been
8issued by a transmission company, as defined in s. 196.485 (1) (ge). Except as
9provided under par. (b), unless and until the commission gives its written approval,
10any contract or arrangement is not valid or effective if the contract or arrangement
11is made between a public utility and an affiliated interest after June 7, 1931. Every
12public utility shall file with the commission a verified copy of any contract or
13arrangement, a verified summary of any unwritten contract or arrangement, and
14any contract or arrangement, written or unwritten, which was in effect on June 7,
151931. The commission shall approve a contract or arrangement made or entered into
16after June 7, 1931, only if it shall clearly appear and be established upon
17investigation that it is reasonable and consistent with the public interest. The
18commission may not approve any contract or arrangement unless satisfactory proof
19is submitted to the commission of the cost to the affiliated interest of rendering the
20services or of furnishing the property or service to each public utility or of the cost
21to the public utility of rendering the services or of furnishing the property or service
22to each affiliated interest. No proof is satisfactory under this paragraph unless it
23includes the original (or verified copies) of the relevant cost records and other
24relevant accounts of the affiliated interest, or an abstract of the records and accounts
25or a summary taken from the records and accounts if the commission deems the
1abstract or summary adequate. The accounts shall be properly identified and duly
2authenticated. The commission, where reasonable, may approve or disapprove a
3contract or arrangement without submission of the cost records or accounts.
AB133-ASA1-CA1,527,75
196.795
(1) (g) 1. As a beneficial owner, to take, hold or acquire 5% or more of
6the outstanding voting securities of a public utility
, other than a transmission
7company, with the unconditional power to vote those securities.
AB133-ASA1-CA1,527,139
196.795
(1) (g) 2. To exchange or convert 50% or more of the outstanding voting
10securities of a public utility, other than a municipality or other political subdivision
11or a transmission company, for or into the voting securities of a company organized,
12created, appointed or formed by or at the direction of the public utility or of a
13subsidiary of such company.
AB133-ASA1-CA1,527,1515
196.795
(1) (h) 3. "Holding company" does not include a transmission company.
AB133-ASA1-CA1,527,1817
196.795
(1) (p) "Transmission company" has the meaning given in s. 196.485
18(1) (ge).
AB133-ASA1-CA1,527,2320
196.795
(5) (i) 1. Shall consider the public utility affiliate as a wholly
21independent corporation
and shall impute a capital structure to the public utility
22affiliate and establish a cost of capital for the public utility affiliate on a stand-alone
23basis;
AB133-ASA1-CA1, s. 2335yf
24Section 2335yf. 196.795 (5) (p) 1., 2., 3. and 4. of the statutes are renumbered
25196.795 (6m) (b) 1., 2., 3. and 4.
AB133-ASA1-CA1, s. 2335yk
8Section 2335yk. 196.795 (5) (pm) 2. of the statutes is renumbered 196.795
9(6m) (c) and amended to read:
AB133-ASA1-CA1,528,1510
196.795
(6m) (c)
Wholesale merchant plants. The assets of a wholesale
11merchant plant shall not be included in the sum of the assets of a public utility
12affiliate under par.
(p) (b) 1. a., b. or c. and shall not be included in a nonutility
13affiliate's total assets under par.
(p) (b) 2. a. if the requirements specified in s. 196.491
14(3m) (a) 1. and 2. are satisfied or if the wholesale merchant plant qualifies for the
15exemption under s. 196.491 (3m) (e).
AB133-ASA1-CA1, s. 2335yL
16Section 2335yL. 196.795 (5) (pm) 3. of the statutes is renumbered 196.795
17(6m) (d) and amended to read:
AB133-ASA1-CA1,528,2118
196.795
(6m) (d)
Foreign affiliates. The assets of a foreign affiliate shall be
19included in the sum of the assets of a public utility affiliate under par.
(p) (b) 1. a.,
20b. or c. and shall not be included in a nonutility affiliate's total assets under par.
(p) 21(b) 2. a.
AB133-ASA1-CA1,528,2323
196.795
(6m) (title)
Asset cap.
AB133-ASA1-CA1,528,2525
196.795
(6m) (a)
Definitions. (intro.) In this subsection:
AB133-ASA1-CA1,529,42
196.795
(6m) (a) 1. "Contributor public utility affiliate" means a public utility
3affiliate that has contributed its transmission facilities to the transmission company
4under s. 196.485 (5) (b).
AB133-ASA1-CA1,529,76
196.795
(6m) (a) 2. "Eligible asset" means an asset of a nonutility affiliate that
7is used for any of the following:
AB133-ASA1-CA1,529,98
a. Producing, generating, transmitting, delivering, selling or furnishing gas,
9oil, electricity or steam energy.
AB133-ASA1-CA1,529,1110
b. Providing an energy management, conservation or efficiency product or
11service or a demand-side management product or service.
AB133-ASA1-CA1,529,1212
c. Providing an energy customer service, including metering or billing.
AB133-ASA1-CA1,529,1313
d. Recovering or producing energy from waste materials.
AB133-ASA1-CA1,529,1414
e. Processing waste materials.
AB133-ASA1-CA1,529,1715
f. Manufacturing, distributing or selling products for filtration, pumping water
16or other fluids, processing or heating water, handling fluids or other related
17activities.
AB133-ASA1-CA1,529,1818
g. Providing a telecommunications service, as defined in s. 196.01 (9m).
AB133-ASA1-CA1,529,1919
h. Providing an environmental engineering service.
AB133-ASA1-CA1,529,2321
196.795
(6m) (a) 4. "Generation assets" means assets that are classified as
22electric generation assets on the books of account of a public utility, as determined
23by the commission.
AB133-ASA1-CA1,529,2525
196.795
(6m) (b)
In general.
AB133-ASA1-CA1,530,72
196.795
(6m) (e)
Contributor public utility affiliates. 1. The eligible assets of
3a nonutility affiliate in a holding company system that includes each of the
4contributor public utility affiliates in the holding company system shall not be
5included in the sum of the assets of the public utility affiliates under par. (b) 1. a.,
6b. or c. and shall not be included in the nonutility affiliate's total assets under par.
7(b) 2. a.
AB133-ASA1-CA1,530,98
2. For purposes of subd. 1., all of the assets of a nonutility affiliate shall be
9considered eligible assets if each of the following is satisfied:
AB133-ASA1-CA1,530,1210
a. The bylaws of the nonutility affiliate or a resolution adopted by its board of
11directors specifies that the business of the nonutility affiliate is limited to activities
12involving eligible assets.
AB133-ASA1-CA1,530,1313
b. Substantially all of the assets of the nonutility affiliate are eligible assets.
AB133-ASA1-CA1,530,1914
3. The net book value of transmission facility assets that a contributor public
15utility affiliate has contributed to a transmission company under s. 196.485 (5) (b)
16shall be included in the sum of the assets of the public utility affiliate under par. (b)
171. a., b. and c. In determining net book value under this subdivision, accumulated
18depreciation shall be calculated as if the contributor public utility affiliate had not
19contributed the assets.
AB133-ASA1-CA1,531,220
4. The net book value of generation assets that a contributor public utility
21affiliate has transferred to a person that is not affiliated with the public utility
22affiliate pursuant to the order of the commission, a court or a federal regulatory
23agency shall be included in the sum of the assets of the public utility affiliate under
24par. (b) 1. a., b. and c. In determining net book value under this subdivision,
1accumulated depreciation shall be calculated as if the contributor public utility
2affiliate had not transferred the assets.
AB133-ASA1-CA1,531,114
196.795
(7) (a) (intro.) No sooner than the first day of the 36th month after the
5formation of a holding company and at least once every 3 years thereafter, the
6commission shall investigate the impact of the operation of every holding company
7system formed on or after November 28, 1985, on every public utility affiliate in the
8holding company system and shall determine whether each nonutility affiliate
,
9except for the nonutility affiliates of a holding company that were affiliates of a
10holding company that was formed before November 28, 1985, does, or can reasonably
11be expected to do, at least one of the following:
AB133-ASA1-CA1,531,2313
196.795
(11) (b) This section shall be deemed to legalize and confirm the
14formation, prior to November 28, 1985, of any holding company, which is not itself
15a public utility, and shall be deemed to legalize and confirm the operations and
16issuances of securities of the holding company, except that nothing in this section
17shall be deemed to prevent the commission from imposing reasonable terms,
18limitations or conditions on any holding company which are consistent with the
19requirements of sub.
(5) (pm) (6m) (c) or (d) or which are consistent with and
20necessary to satisfy the requirements of sub. (5) (b) to (o) and (q) to (s) or which relate
21to future investments by the holding company unless the holding company owns,
22operates, manages or controls a telecommunications utility and does not also own,
23operate, manage or control a public utility which is not a telecommunications utility.