AB389: Bill Text

AB389, s. 66 Section 66. 196.494 (3) of the statutes is amended to read:

AB389,55,24 196.494 (3) No later than December 31, 2004, the The commission may shall, under this subsection, issue an order requiring an electric utility to construct or procure, on a competitive basis, the construction of transmission facilities specified by the commission in its order if the commission determines that, based on the results of the study under sub. (2), such construction is necessary to relieve a constraint on a transmission system and the construction will materially benefit the customers of the electric utility or other electric utilities or of an independent system operator, as defined in s. 196.485 (1) (d), or independent transmission owner, as defined in s. 196.485 (1) (dm).

AB389, s. 67 Section 67. 196.494 (5) of the statutes is created to read:

AB389,56,6 196.494 (5) The governor may, on behalf of this state, enter into an interstate compact that establishes a joint process for the states in the upper midwest region of the United States to determine the need for and siting of regional electric transmission facilities that may affect electric service in this state. The governor may not enter into a compact under this subsection unless the compact includes requirements and procedures for establishing each of the following:

AB389,56,8 (a) Compliance with each state's environmental and siting standards for transmission facilities.

AB389,56,9 (b) A regional need determination for transmission facilities.

AB389,56,11 (c) A mechanism for resolving conflicts between the states regarding the siting of transmission facilities.

AB389, s. 68 Section 68. 196.52 (3) (a) of the statutes is amended to read:

AB389,57,17 196.52 (3) (a) In this subsection, "contract or arrangement" means a contract or arrangement providing for the furnishing of management, supervisory, construction, engineering, accounting, legal, financial or similar services and any contract or arrangement for the purchase, sale, lease or exchange of any property, right, or thing, or for the furnishing of any service, property, right, or thing, other than management, supervisory, construction, engineering, accounting, legal, financial or similar services, but "contract or arrangement" does not include a contract or arrangement under which a transmission utility, as defined in s. 196.485 (1) (i), sells or transfers securities, as defined in s. 196.485 (1) (fe), that have been issued by a transmission company, as defined in s. 196.485 (1) (ge). Except as provided under par. (b), unless and until the commission gives its written approval, any contract or arrangement is not valid or effective if the contract or arrangement is made between a public utility and an affiliated interest after June 7, 1931. Every public utility shall file with the commission a verified copy of any contract or arrangement, a verified summary of any unwritten contract or arrangement, and any contract or arrangement, written or unwritten, which was in effect on June 7, 1931. The commission shall approve a contract or arrangement made or entered into after June 7, 1931, only if it shall clearly appear and be established upon investigation that it is reasonable and consistent with the public interest. The commission may not approve any contract or arrangement unless satisfactory proof is submitted to the commission of the cost to the affiliated interest of rendering the services or of furnishing the property or service to each public utility or of the cost to the public utility of rendering the services or of furnishing the property or service to each affiliated interest. No proof is satisfactory under this paragraph unless it includes the original (or verified copies) of the relevant cost records and other relevant accounts of the affiliated interest, or an abstract of the records and accounts or a summary taken from the records and accounts if the commission deems the abstract or summary adequate. The accounts shall be properly identified and duly authenticated. The commission, where reasonable, may approve or disapprove a contract or arrangement without submission of the cost records or accounts.

AB389, s. 69 Section 69. 196.795 (1) (g) 1. of the statutes is amended to read:

AB389,57,21 196.795 (1) (g) 1. As a beneficial owner, to take, hold or acquire 5% or more of the outstanding voting securities of a public utility, other than a transmission company, with the unconditional power to vote those securities.

AB389, s. 70 Section 70. 196.795 (1) (g) 2. of the statutes is amended to read:

AB389,58,2 196.795 (1) (g) 2. To exchange or convert 50% or more of the outstanding voting securities of a public utility, other than a municipality or other political subdivision or a transmission company, for or into the voting securities of a company organized, created, appointed or formed by or at the direction of the public utility or of a subsidiary of such company.

AB389, s. 71 Section 71. 196.795 (1) (h) 3. of the statutes is created to read:

AB389,58,4 196.795 (1) (h) 3. "Holding company" does not include a transmission company.

AB389, s. 72 Section 72. 196.795 (1) (p) of the statutes is created to read:

AB389,58,7 196.795 (1) (p) "Transmission company" has the meaning given in s. 196.485 (1) (ge).

AB389, s. 73 Section 73. 196.795 (5) (i) 1. of the statutes is amended to read:

AB389,58,12 196.795 (5) (i) 1. Shall consider the public utility affiliate as a wholly independent corporation and shall impute a capital structure to the public utility affiliate and establish a cost of capital for the public utility affiliate on a stand-alone basis;

AB389, s. 74 Section 74. 196.795 (5) (p) 1., 2., 3. and 4. of the statutes are renumbered 196.795 (6m) (b) 1., 2., 3. and 4.

AB389, s. 75 Section 75. 196.795 (5) (pm) 1. (intro.) of the statutes is repealed.

AB389, s. 76 Section 76. 196.795 (5) (pm) 1. a. of the statutes is renumbered 196.795 (6m) (a) 3.

AB389, s. 77 Section 77. 196.795 (5) (pm) 1. b. of the statutes is renumbered 196.795 (6m) (a) 5.

AB389, s. 78 Section 78. 196.795 (5) (pm) 1. c. of the statutes is renumbered 196.795 (6m) (a) 6.

AB389, s. 79 Section 79. 196.795 (5) (pm) 2. of the statutes is renumbered 196.795 (6m) (c) and amended to read:

AB389,59,4 196.795 (6m) (c) Wholesale merchant plants. The assets of a wholesale merchant plant shall not be included in the sum of the assets of a public utility affiliate under par. (p) (b) 1. a., b. or c. and shall not be included in a nonutility affiliate's total assets under par. (p) (b) 2. a. if the requirements specified in s. 196.491 (3m) (a) 1. and 2. are satisfied or if the wholesale merchant plant qualifies for the exemption under s. 196.491 (3m) (e).

AB389, s. 80 Section 80. 196.795 (5) (pm) 3. of the statutes is renumbered 196.795 (6m) (d) and amended to read:

AB389,59,10 196.795 (6m) (d) Foreign affiliates. The assets of a foreign affiliate shall be included in the sum of the assets of a public utility affiliate under par. (p) (b) 1. a., b. or c. and shall not be included in a nonutility affiliate's total assets under par. (p) (b) 2. a.

AB389, s. 81 Section 81. 196.795 (6m) (title) of the statutes is created to read:

AB389,59,12 196.795 (6m) (title) Asset cap.

AB389, s. 82 Section 82. 196.795 (6m) (a) (intro.) of the statutes is created to read:

AB389,59,14 196.795 (6m) (a) Definitions. (intro.) In this subsection:

AB389, s. 83 Section 83. 196.795 (6m) (a) 1. of the statutes is created to read:

AB389,59,18 196.795 (6m) (a) 1. "Contributor public utility affiliate" means a public utility affiliate that has contributed its transmission facilities to the transmission company under s. 196.485 (5) (b).

AB389, s. 84 Section 84. 196.795 (6m) (a) 2. of the statutes is created to read:

AB389,59,21 196.795 (6m) (a) 2. "Eligible asset" means an asset of a nonutility affiliate that is used for any of the following:

AB389,59,23 a. Producing, generating, transmitting, delivering, selling or furnishing gas, oil, electricity or steam energy.

AB389,59,25 b. Providing an energy management, conservation or efficiency product or service or a demand-side management product or service.

AB389,60,1 c. Providing an energy customer service, including metering or billing.

AB389,60,2 d. Recovering or producing energy from waste materials.

AB389,60,3 e. Processing waste materials.

AB389,60,6 f. Manufacturing, distributing or selling products for filtration, pumping water or other fluids, processing or heating water, handling fluids or other related activities.

AB389,60,7 g. Providing a telecommunications service, as defined in s. 196.01 (9m).

AB389, s. 85 Section 85. 196.795 (6m) (a) 4. of the statutes is created to read:

AB389,60,11 196.795 (6m) (a) 4. "Generation assets" means assets that are classified as electric generation assets on the books of account of a public utility, as determined by the commission.

AB389, s. 86 Section 86. 196.795 (6m) (b) (title) of the statutes is created to read:

AB389,60,13 196.795 (6m) (b) In general.

AB389, s. 87 Section 87. 196.795 (6m) (e) of the statutes is created to read:

AB389,60,20 196.795 (6m) (e) Contributor public utility affiliates. 1. The eligible assets of a nonutility affiliate in a holding company system that includes each of the contributor public utility affiliates in the holding company system shall not be included in the sum of the assets of the public utility affiliates under par. (b) 1. a., b. or c. and shall not be included in the nonutility affiliate's total assets under par. (b) 2. a.

AB389,60,22 2. For purposes of subd. 1., all of the assets of a nonutility affiliate shall be considered eligible assets if each of the following is satisfied:

AB389,60,25 a. The bylaws of the nonutility affiliate or a resolution adopted by its board of directors specifies that the business of the nonutility affiliate is limited to activities involving eligible assets.

AB389,61,1 b. Substantially all of the assets of the nonutility affiliate are eligible assets.

AB389,61,7 3. The net book value of transmission facility assets that a contributor public utility affiliate has contributed to a transmission company under s. 196.485 (5) (b) shall be included in the sum of the assets of the public utility affiliate under par. (b) 1. a., b. and c. In determining net book value under this subdivision, accumulated depreciation shall be calculated as if the contributor public utility affiliate had not contributed the assets.

AB389,61,14 4. The net book value of generation assets that a contributor public utility affiliate has transferred to a person that is not affiliated with the public utility affiliate pursuant to the order of the commission, a court or a federal regulatory agency shall be included in the sum of the assets of the public utility affiliate under par. (b) 1. a., b. and c. In determining net book value under this subdivision, accumulated depreciation shall be calculated as if the contributor public utility affiliate had not transferred the assets.

AB389, s. 88 Section 88. 196.795 (11) (b) of the statutes is amended to read:

AB389,62,2 196.795 (11) (b) This section shall be deemed to legalize and confirm the formation, prior to November 28, 1985, of any holding company, which is not itself a public utility, and shall be deemed to legalize and confirm the operations and issuances of securities of the holding company, except that nothing in this section shall be deemed to prevent the commission from imposing reasonable terms, limitations or conditions on any holding company which are consistent with the requirements of sub. (5) (pm) (6m) (c) or (d) or which are consistent with and necessary to satisfy the requirements of sub. (5) (b) to (o) and (q) to (s) or which relate to future investments by the holding company unless the holding company owns, operates, manages or controls a telecommunications utility and does not also own, operate, manage or control a public utility which is not a telecommunications utility.

AB389, s. 89 Section 89. 196.795 (11) (c) of the statutes is created to read:

AB389,62,12 196.795 (11) (c) The commission may not impose upon a holding company the formation of which is considered to be legalized and confirmed under par. (b) any term, limitation or condition under par. (b) that establishes the sum of the holding company's nonutility affiliate assets at less than 25% of the sum of the holding company's utility affiliate assets. For purposes of this paragraph, any term, limitation or condition on nonutility affiliate assets shall not apply to the ownership, operation, management or control of any eligible asset, as defined under sub. (6m) (a) 2., or an asset that is used for manufacturing, distributing or selling swimming pools or spas.

AB389, s. 90 Section 90. 196.807 of the statutes is created to read:

AB389,62,15 196.807 Energy affiliate and utility employes. (1) Definitions. In this section:

AB389,62,17 (a) "Affiliate or utility" means a nonutility affiliate, a holding company system or an electric utility, as defined in s. 196.491 (1) (d).

AB389,62,20 (b) "Energy unit" means a unit in this state that is engaged in activities related to the production, generation, transmission or distribution of electricity, gas or steam or the recovery of energy from waste materials.

AB389,62,21 (c) "Holding company system" has the meaning given in s. 196.795 (1) (i).

AB389,62,22 (d) "Nonutility affiliate" has the meaning given in s. 196.795 (1) (j).

AB389,62,23 (e) "Public utility affiliate" has the meaning given in s. 196.795 (1) (L).

AB389,62,25 (f) "Sell an energy unit" means to sell, offer by lease, or otherwise transfer ownership or control of the energy unit.

AB389,63,2 (g) "Unit" means a division, department or other operational business unit of an affiliate or utility.

AB389,63,7 (2) Offer of employment. (a) Except as provided in par. (b), a person may not sell an energy unit unless the terms of the transfer require the person to which the energy unit is transferred to offer employment to the nonsupervisory employes who are employed with the energy unit immediately prior to the transfer and who are necessary for the operation and maintenance of the energy unit.

AB389,63,11 (b) A public utility affiliate may not sell an energy unit to a nonutility affiliate in the same holding company system unless the terms of the transfer require the nonutility affiliate to offer employment to all of the nonsupervisory employes who are employed with the energy unit immediately prior to the transfer.

AB389,63,14 (3) Employment terms and conditions. (a) Except as provided in par. (b), the employment that is offered under sub. (2) shall satisfy each of the following during the 30-month period beginning immediately after the transfer:

AB389,63,16 1. Wage rates shall be no less than the wage rates in effect immediately prior to the transfer.

AB389,63,18 2. Fringe benefits shall be substantially equivalent to the fringe benefits in effect immediately prior to the transfer.

AB389,63,21 3. Terms and conditions of employment, other than wage rates and fringe benefits, shall be substantially equivalent to the terms and conditions in effect immediately prior to the transfer.

AB389,63,23 (b) A collective bargaining agreement may modify or waive a requirement specified in par. (a).

AB389,64,3 (4) Commission approval. Except for a cooperative association, as defined in s. 196.491 (1) (bm), no person may sell an energy unit unless the commission determines that the person has satisfied subs. (2) and (3).

AB389, s. 91 Section 91. 200.01 (2) of the statutes is amended to read:

AB389,64,22 200.01 (2) "Public service corporation" means and embraces every corporation, except municipalities and other political subdivisions, which is a public utility as defined in s. 196.01, and every corporation which is a railroad as defined in s. 195.02, but shall not include a public utility corporation receiving an annual gross revenue of less than $1,000 for the calendar year next preceding the issuance of any securities by it. "Public service corporation" includes a holding company, as defined under s. 196.795 (1) (h), which is a public utility, as defined under s. 196.01 (5). "Public service corporation" does not include a telecommunications utility, as defined in s. 196.01 (10). "Public service corporation" does not include any other holding company unless the holding company was formed after November 28, 1985, and unless the commission has determined, under s. 196.795 (7) (a), that each nonutility affiliate, as defined under s. 196.795 (1) (j), does not and cannot reasonably be expected to do at least one of the items specified in s. 196.795 (7) (a). "Public service corporation" does not include a company, as defined in s. 196.795 (1) (f), which owns, operates, manages or controls a telecommunications utility, as defined in s. 196.01 (10), unless such company also owns, operates, manages or controls a public utility which is not a telecommunications utility. "Public service corporation" does not include a transmission company, as defined in s. 196.485 (1) (ge).

AB389, s. 92 Section 92. 285.48 of the statutes is created to read:

AB389,65,8 285.48 Nitrogen oxide emissions from certain electric generation facilities. (1) In establishing nitrogen oxide emission reductions for the control of atmospheric ozone in another state pursuant to a call for a state implementation plan issued prior to the effective date of this subsection .... [revisor inserts date], the department may not, in an implementation plan under s. 285.11 (6), by rule or through the adoption of control strategies, regulate nitrogen oxide emissions from electric generation facilities that are located in Ashland, Barron, Bayfield, Buffalo, Burnett, Chippewa, Clark, Douglas, Dunn, Eau Claire, Iron, Jackson, La Crosse, Monroe, Pepin, Pierce, Polk, Price, Rusk, Sawyer, St. Croix, Taylor, Trempealeau, Vernon or Washburn county.

AB389,65,12 (2) The department may not, based solely on the prohibition under sub. (1), require more stringent nitrogen oxide emission reductions for any electric utility, as defined in s. 196.491 (1) (d), or large industrial core source in this state that is identified by the federal environmental protection agency.

AB389, s. 93 Section 93. Nonstatutory provisions.

AB389,65,17 (1) Initial appointments to council on utility public benefits. Notwithstanding section 15.107 (17) (intro.) of the statutes, as created by this act, the initial members of the council on utility public benefits shall be appointed for the following terms:

AB389,65,19 (a) One of the members under section 15.107 (17) (a), (b) and (d) of the statutes, as created by this act, for terms expiring on July 1, 2001.

AB389,65,22 (b) One of the members under section 15.107 (17) (a) of the statutes, as created by this act, and the members under section 15.107 (17) (c), (e) and (f) of the statutes, as created by this act, for terms expiring on July 1, 2002.

AB389,65,25 (c) One of the members under section 15.107 (17) (b) and (d) of the statutes, as created by this act, and the members under section 15.107 (17) (g) and (h) of the statutes, as created by this act, for terms expiring on July 1, 2003.

AB389,66,1 (2) Public service commission rules.

AB389,66,8 (a) Using the procedure under section 227.24 of the statutes, the public service commission shall promulgate the rules required under section 196.378 (3) (a) of the statutes, as created by this act, for the period before the effective date of the permanent rules promulgated under that section, but not to exceed the period authorized under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) and (3) of the statutes, the commission is not required to make a finding of emergency.

AB389,66,12 (b) The public service commission shall submit in proposed form the rules required under section 196.378 (3) (a) of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 6th month beginning after the effective date of this paragraph.

AB389,66,13 (3) Department of administration rules.