AB389: Bill Text

AB389,32,6 (n) "System renewable energy" means the amount of electricity that an electric provider sells to its retail customers or members and that is supplied by renewable facilities owned or operated by the electric provider.

AB389,32,8 (o) "Total renewable energy" means the sum of an electric provider's system and nonsystem renewable energy.

AB389,32,12 (2) Renewable resource energy. (a) Each electric provider shall provide to its retail electric customers or members total renewable energy in at least the following percentages of its total retail energy sales, either directly or through renewable resource credits from another electric provider:

AB389,32,13 1. By December 31, 2000, 0.5%.

AB389,32,14 2. By December 31, 2002, 0.85%.

AB389,32,15 3. By December 31, 2004, 1.2%.

AB389,32,16 4. By December 31, 2006, 1.55%.

AB389,32,17 5. By December 31, 2008, 1.9%.

AB389,32,18 6. By December 31, 2010, 2.2%.

AB389,32,19 (b) For purposes of determining compliance with par. (a):

AB389,32,21 1. Total retail energy sales shall be calculated on the basis of an average of an electric provider's retail energy sales in this state during the prior 3 years.

AB389,33,2 2. The amount of electricity supplied by a renewable facility in which biomass and conventional fuels are fired together shall be equal to the product of the maximum amount of electricity that the facility is capable of generating and the ratio of the British thermal unit content of the biomass fuels to the British thermal unit content of both the biomass and conventional resource fuels.

AB389,33,5 3. Any excludable renewable energy that exceeds 0.6% of an electric provider's total retail energy sales shall be excluded from the electric provider's total renewable energy.

AB389,33,11 (c) No later than April 15 annually, an electric provider shall submit a report to the department that describes the electric provider's compliance with par. (a). Reports under this paragraph may include certifications from wholesale suppliers regarding the sources and amounts of energy supplied to an electric provider. The department may specify the documentation that is required to be included with reports submitted under this paragraph.

AB389,33,16 (d) The commission shall allow an electric utility to recover from ratepayers the cost of providing total renewable energy to its retail customers or members in amounts that equal or exceed the percentages specified in par. (a). Subject to any approval of the commission that is necessary, an electric utility may recover costs under this paragraph by any of the following methods:

AB389,33,18 1. Allocating the costs equally to all customers or members on a kilowatt-hour basis.

AB389,33,20 2. Establishing alternative price structures, including price structures under which customers or members pay a premium for renewable energy.

AB389,33,21 3. Any combination of the methods specified in subds. 1. and 2.

AB389,33,22 (e) 1. This subsection does not apply to any of the following:

AB389,33,24 a. An electric provider that provides more than 10% of its summer peak demand in this state from renewable facilities.

AB389,34,2 b. An electric provider that provides more than 10% of its summer peak demand from renewable resources.

AB389,34,5 2. For purposes of calculating the percentages under subd. 1., an electric provider may include renewable facilities located in this or another state and renewable facilities located on its or another electric provider's system.

AB389,34,9 3. Notwithstanding subd. 1., this subsection applies to an electric provider unless the electric provider provides documentation to the commission that establishes, to the satisfaction of the commission, that the electric provider satisfies the requirements under subd. 1. a. or b.

AB389,34,18 (3) Renewable resource credits. (a) An electric provider that provides total renewable energy to its retail electric customers or members in excess of the percentages specified in sub. (2) (a) 1. to 6. may, in the applicable year, sell to any other electric provider a renewable resource credit or a portion of a renewable resource credit at any negotiated price. Alternatively, an electric provider may use a renewable resource credit or portion of a renewable resource credit in a subsequent year to establish compliance with sub. (2) (a). The commission shall promulgate rules that establish requirements for calculating the amount of a renewable resource credit.

AB389,34,20 (b) The commission may promulgate rules that establish requirements and procedures for a sale under par. (a).

AB389,34,23 (4) Rules. The commission may promulgate rules that designate a resource, except for a conventional resource, as a renewable resource in addition to the resources specified in sub. (1) (g) 1. and 1m.

AB389,35,5 (5) Penalty. Any person who violates sub. (2) or any wholesale supplier who provides an electric provider with a false or misleading certification regarding the sources or amounts of energy supplied to the electric provider shall forfeit not less than $5,000 nor more than $500,000. Forfeitures under this subsection shall be enforced by action on behalf of the state by the attorney general. A court imposing a forfeiture under this subsection shall consider all of the following in determining the amount of the forfeiture:

AB389,35,7 (a) The appropriateness of the forfeiture to the person's or wholesale supplier's volume of business.

AB389,35,8 (b) The gravity of the violation.

AB389,35,10 (c) Whether a violation of sub. (2) is due to circumstances beyond the violator's control.

AB389, s. 27 Section 27. 196.485 (title) of the statutes is repealed and recreated to read:

AB389,35,12 196.485 (title) Transmission system requirements.

AB389, s. 28 Section 28. 196.485 (1) (am) of the statutes is created to read:

AB389,35,16 196.485 (1) (am) "Contribute a transmission facility" means to divest a person's interest in the transmission facility and to transfer ownership of the transmission facility and associated deferred tax reserves to another person.

AB389, s. 29 Section 29. 196.485 (1) (be) of the statutes is created to read:

AB389,35,20 196.485 (1) (be) "Director" means, with respect to a transmission company organized as a corporation under ch. 180, a member of the board of directors of the transmission company.

AB389, s. 30 Section 30. 196.485 (1) (bs) of the statutes is created to read:

AB389,35,22 196.485 (1) (bs) "Electric utility" has the meaning given in s. 196.491 (1) (d).

AB389, s. 31 Section 31. 196.485 (1) (dm) (intro.) of the statutes is amended to read:

AB389,35,24 196.485 (1) (dm) (intro.) "Independent transmission owner" means:

AB389,35,25 1m. Means a person that satisfies each of the following:

AB389, s. 32 Section 32. 196.485 (1) (dm) 1. of the statutes is renumbered 196.485 (1) (dm) 1m. a.

AB389, s. 33 Section 33. 196.485 (1) (dm) 2. of the statutes is created to read:

AB389,36,4 196.485 (1) (dm) 2. Does not include the transmission company.

AB389, s. 34 Section 34. 196.485 (1) (dm) 3. of the statutes is renumbered 196.485 (1) (dm) 1m. b. and amended to read:

AB389,36,8 196.485 (1) (dm) 1m. b. The person is not an affiliated interest of a person specified in subd. 1. 1m. a.

AB389, s. 35 Section 35. 196.485 (1) (do) of the statutes is created to read:

AB389,36,12 196.485 (1) (do) "Land right" means any right in real property, including fee simple ownership or a right-of-way or easement, that has been acquired for a transmission facility that is located or intended to be located on the real property.

AB389, s. 36 Section 36. 196.485 (1) (dq) of the statutes is created to read:

AB389,36,16 196.485 (1) (dq) "Manager" means, with respect to a transmission company organized as a limited liability company under ch. 183, a manager, as defined in s. 183.0102 (13), of the transmission company.

AB389, s. 37 Section 37. 196.485 (1) (dr) of the statutes is created to read:

AB389,36,20 196.485 (1) (dr) "Merger enforcement policy" means the enforcement policy of the federal department of justice and the federal trade commission regarding horizontal acquisitions and mergers that are subject to 15 USC 1, 18 or 45.

AB389, s. 38 Section 38. 196.485 (1) (ds) of the statutes is created to read:

AB389,36,25 196.485 (1) (ds) "Midwest independent system operator" means the independent system operator the establishment of which the federal energy regulatory commission has conditionally authorized in an order issued on September 16, 1998, or the successor to such independent system operator.

AB389, s. 39 Section 39. 196.485 (1) (dt) of the statutes is created to read:

AB389,37,3 196.485 (1) (dt) "Nontransmission utility security holder" means a security holder that is not a transmission utility security holder.

AB389, s. 40 Section 40. 196.485 (1) (dv) of the statutes is created to read:

AB389,37,10 196.485 (1) (dv) "Organizational start-up date" means, with respect to a transmission company that is organized as a limited liability company under ch. 183, the date on which the articles of organization become effective under s. 183.0111 or, with respect to a transmission company that is organized as a corporation under ch. 180, the date on which the articles of incorporation become effective under s. 180.0123.

AB389, s. 41 Section 41. 196.485 (1) (em) of the statutes is created to read:

AB389,37,13 196.485 (1) (em) "Retail electric cooperative" means a cooperative that provides retail electric service to its members.

AB389, s. 42 Section 42. 196.485 (1) (fe) of the statutes is created to read:

AB389,37,18 196.485 (1) (fe) "Security" means, with respect to a transmission company organized as a corporation under ch. 180, a share, as defined in s. 180.0103 (15), and, with respect to a transmission company organized as a limited liability company under ch. 183, a limited liability company interest, as defined in s. 183.0102 (11).

AB389, s. 43 Section 43. 196.485 (1) (ge) of the statutes is created to read:

AB389,38,2 196.485 (1) (ge) "Transmission company" means a corporation organized under ch. 180 or a limited liability company organized under ch. 183 that has as its sole purpose the planning, constructing, operating, maintaining and expanding of transmission facilities that it owns to provide for an adequate and reliable transmission system that meets the needs of all users that are dependent on the transmission system and that supports effective competition in energy markets without favoring any market participant.

AB389, s. 44 Section 44. 196.485 (1) (gm) of the statutes is created to read:

AB389,38,6 196.485 (1) (gm) "Transmission dependent utility" means an electric utility that is not a transmission utility and that is dependent on the transmission system of another person for delivering electricity to the public utility's customers.

AB389, s. 45 Section 45. 196.485 (1) (j) of the statutes is created to read:

AB389,38,11 196.485 (1) (j) "Transmission utility security holder" means a person that is a security holder of a transmission company, is an investor-owned transmission utility in the transmission area and has contributed its transmission facilities to the transmission company.

AB389, s. 46 Section 46. 196.485 (1m) of the statutes is created to read:

AB389,38,17 196.485 (1m) Duty to provide transmission service. (a) The duty of any electric utility that has contributed its transmission facilities to the transmission company to finance, construct, maintain or operate a transmission facility shall terminate on the date, as determined by the commission under sub. (2) (d), that the transmission company begins operations.

AB389,38,22 (b) After beginning operations, the transmission company shall have the exclusive duty to provide transmission service in those areas in which transmission facilities have been contributed. The duty under this paragraph shall terminate on the date, as determined by the commission under sub. (2) (d), that the Midwest independent system operator begins operations.

AB389,39,2 (c) After beginning operations, the Midwest independent system operator shall have the exclusive duty to provide transmission service in the transmission area and shall ensure that each transmission facility in the transmission area that is under its operational control is planned, constructed, operated, maintained and controlled as part of a single transmission system.

AB389, s. 47 Section 47. 196.485 (2) (a) (intro.) of the statutes is amended to read:

AB389,39,10 196.485 (2) (a) (intro.) 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. pars. (am) and (ar), order the transmission utility to apply to the applicable federal agency to do one of the following:

AB389, s. 48 Section 48. 196.485 (2) (ar) of the statutes is created to read:

AB389,39,19 196.485 (2) (ar) The commission shall waive the requirement to issue an order against a transmission utility under par. (a) if the transmission utility shows, to the satisfaction of the commission, that a transfer of its transmission facilities to the Midwest independent system operator may have the effect of jeopardizing the tax-exempt status of the transmission utility or its securities under the Internal Revenue Code. A waiver under this paragraph shall be in effect until the commission determines that the proposed transfer does not have the effect described in this paragraph.

AB389, s. 49 Section 49. 196.485 (2) (bx) of the statutes is created to read:

AB389,40,2 196.485 (2) (bx) If the Midwest system operator fails to commence operations or ceases operations, the requirements of this section that apply to the Midwest independent system operator shall apply to any other independent system operator or regional transmission organization that is authorized under federal law to operate in this state. The commission shall require that any transfer of transmission facilities to such independent system operator or regional transmission organization satisfies the requirements of this section.

AB389, s. 50 Section 50. 196.485 (2) (d) of the statutes is created to read:

AB389,40,4 196.485 (2) (d) The commission shall determine each of the following:

AB389,40,5 1. The date on which the transmission company begins operations.

AB389,40,7 2. Whether the Midwest independent system operator has begun operations and the date on which such operations have begun.

AB389, s. 51 Section 51. 196.485 (3) (bm) of the statutes is repealed.

AB389, s. 52 Section 52. 196.485 (3m) of the statutes is created to read:

AB389,40,11 196.485 (3m) Transmission company. (a) Duties. 1. The transmission company shall do each of the following:

AB389,40,13 a. Apply for any approval under state or federal law that is necessary for the transmission company to begin operations no later than November 1, 2000.

AB389,40,20 b. Subject to any approval required under state or federal law, contract with each transmission utility that has transferred transmission facilities to the transmission company for the transmission utility to provide reasonable and cost-effective operation and maintenance services to the transmission company during the 3-year period after the transmission company first begins operations. The transmission company and a transmission utility may, subject to any approval required under federal or state law, agree to an extension of such 3-year period.

AB389,41,2 c. Assume the obligations of a transmission utility that has transferred ownership of its transmission facilities to the transmission company under any agreement by the transmission utility to provide transmission service over its transmission facilities or credits for the use of transmission facilities, except that the transmission company may modify such an agreement to the extent allowed under the agreement and to the extent allowed under state or federal law.

AB389,41,8 d. Apply for membership in the Midwest independent system operator as a single zone for pricing purposes that includes the transmission area and, upon a determination by the commission under sub. (2) (d) that the Midwest independent system operator has begun operations, transfer operational control of the transmission company's transmission facilities to the Midwest independent system operator.