Analysis by the Legislative Reference Bureau
Under current law, the department of administration (DOA) administers the
following: 1) programs that provide assistance to low-income households for
weatherization and other energy services (low-income programs); and 2) energy
conservation and efficiency and renewable resource programs (other energy
programs). There are two sources of funding for the programs: 1) monthly public
benefits fees that electric utilities and cooperative associations must charge to their
customers and members; and 2) annual contributions by certain gas and electric
utilities.
Regarding the public benefits fees, nonmunicipal electric utilities are treated
differently than municipal electric utilities and cooperative associations.
Nonmunicipal utilities must charge a fee consisting of a portion for funding the
low-income programs and a portion for funding the other energy programs. In fiscal
year 1999-2000, the low-income portion was required to generate an amount equal
to the difference between $24,000,000 and 50% of the public benefits fees charged by
municipal electric utilities and cooperative associations. In subsequent fiscal years,
the low-income portion is required to generate an amount that is based, in part, on
a determination of the need for low-income programs. Regarding the portion of the
public benefits fee for funding the other energy programs, in fiscal year 1999-2000,
that portion was required to generate an amount equal to the difference between
$20,000,000 and 50% of the public benefits fees charged by municipal electric
utilities and cooperative associations. In subsequent fiscal years, DOA is allowed to
reduce the amount if DOA discontinues or reduces some of the other energy
programs.
Current law requires municipal electric utilities and cooperative associations
to charge a public benefits fee in an amount that is sufficient to collect an annual
average of $16 per meter. Municipal utilities and cooperative associations have the
option of paying the fees to DOA or establishing their own low-income and other
energy programs.
This bill changes the low-income programs portion of the public benefits fees
charged by nonmunicipal utilities. Under the bill, the low-income programs portion
must generate in each fiscal year the amount that is required under current law in
fiscal year 1999-2000. The bill also eliminates the portion of the public benefits fee
charged by nonmunicipal utilities for funding the other energy programs. As a
result, the funding source for the other energy programs is the annual contributions
by gas and electric utilities.
In addition, the bill reduces the amount that municipal electric utilities and
cooperative associations must charge in public benefits fees. Under the bill, the
amount charged must be sufficient to generate an annual average of $8 per meter.
Also, the bill allows municipal utilities and cooperative associations to pay the fees
to DOA or establish their own low-income programs, but eliminates the option of
establishing their own other energy programs.
Finally, the bill eliminates a requirement under current law that a specified
percentage of the funding for low-income programs administered by DOA must be
used for weatherization and other energy conservation programs.
All of the bill's changes take effect on July 1, 2002.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB545, s. 1
1Section
1. 16.957 (1) (c) of the statutes is amended to read:
AB545,3,52
16.957
(1) (c) "Commitment to community program" means a program by a
3municipal utility
or, retail electric cooperative
, or wholesale supplier for low-income
4assistance
or an energy conservation program by a municipal utility or retail electric
5cooperative.
AB545, s. 2
6Section
2. 16.957 (1) (n) of the statutes is repealed.
AB545, s. 3
7Section
3. 16.957 (1) (o) of the statutes is repealed.
AB545, s. 4
8Section
4. 16.957 (1) (p) of the statutes is repealed.
AB545, s. 5
9Section
5. 16.957 (1) (u) of the statutes is repealed.
AB545,3,1712
16.957
(2) (a)
Low-income programs. After holding a hearing, establish
13programs to be administered by the department for awarding grants from the
14appropriation under s. 20.505 (3) (r) to provide low-income assistance.
In each fiscal
15year, the amount awarded under this paragraph shall be sufficient to ensure that an
16amount equal to 47% of the sum of the following is spent for weatherization and other
17energy conservation services:
AB545, s. 7
18Section
7. 16.957 (2) (a) 1., 2., 3. and 4. of the statutes are repealed.
AB545, s. 8
19Section
8. 16.957 (2) (b) 2. of the statutes is amended to read:
AB545,4,820
16.957
(2) (b) 2. For each fiscal year after fiscal year 2003-04, determine
21whether to continue, discontinue or reduce any of the programs established under
1subd. 1. and determine the total amount necessary to fund the programs that the
2department determines to continue or reduce under this subdivision.
The
3department shall notify the commission if If the department determines under this
4subdivision to reduce
funding by an amount that is greater than the portion of the
5public benefits fee specified in sub. (4) (c) 2. The notice shall specify the portion of
6the reduction that exceeds the amount of public benefits fees specified in sub. (4) (c)
72 the total amount necessary to fund the programs, the department shall notify the
8commission about the amount of the reduction.
AB545, s. 9
9Section
9. 16.957 (2) (c) 1. of the statutes is amended to read:
AB545,4,1410
16.957
(2) (c) 1. Eligibility requirements for low-income assistance under
11programs established under par. (a). The rules shall prohibit a person who receives
12low-income assistance from a municipal utility or retail electric cooperative under
13a
commitment to community program specified in sub. (5)
(d) 2. b. or 3. a. (dm) from
14receiving low-income assistance under programs established under par. (a).
AB545, s. 10
15Section
10. 16.957 (2) (c) 5. of the statutes is repealed.
AB545, s. 11
16Section
11. 16.957 (2) (d) 1. of the statutes is repealed.
AB545, s. 12
17Section
12. 16.957 (2) (d) 3. of the statutes is amended to read:
AB545,4,1918
16.957
(2) (d) 3. Deposit all moneys received under sub. (4) (a) or (5) (c)
or (d) 19in the utility public benefits fund.
AB545, s. 13
20Section
13. 16.957 (4) (c) 1. (intro.) of the statutes is renumbered 16.957 (4)
21(c) 1. and amended to read:
AB545,5,322
16.957
(4) (c) 1. `Low-income funding.' In
each fiscal year
1999-2000, a portion
23of the public benefits fee shall be an amount that, when added to
50% 100% of the
24estimated public benefits fees charged by municipal utilities and retail electric
25cooperatives under sub. (5) (a) for that fiscal year, shall equal $24,000,000.
In each
1fiscal year after fiscal year 1999-2000, a portion of the public benefits fee shall be an
2amount that, when added to the sum of the following shall equal the low-income
3need target for that fiscal year determined by the department under sub. (2) (d) 1.:
AB545, s. 14
4Section
14. 16.957 (4) (c) 1. a., b. and c. of the statutes are repealed.
AB545, s. 15
5Section
15. 16.957 (4) (c) 2. of the statutes is repealed.
AB545, s. 16
6Section
16. 16.957 (5) (a) of the statutes is amended to read:
AB545,5,137
16.957
(5) (a)
Requirement to charge public benefits fees. Each retail electric
8cooperative and municipal utility shall charge a monthly public benefits fee to each
9customer or member in an amount that is sufficient for the retail electric cooperative
10or municipal utility to collect an annual average of
$16 $8 per meter. A retail electric
11cooperative or municipal utility may determine the amount that a particular class
12of customers or members is required to pay under this paragraph and may charge
13different fees to different classes of customers or members.
AB545, s. 17
14Section
17. 16.957 (5) (b) 1. of the statutes is amended to read:
AB545,5,1715
16.957
(5) (b) 1. No later than October 1, 2000, each municipal utility or retail
16electric cooperative shall notify the department whether it has elected to contribute
17to the programs established under sub. (2) (a)
or (b) 1. for a 3-year period.
AB545, s. 18
18Section
18. 16.957 (5) (b) 2. of the statutes is amended to read:
AB545,5,2219
16.957
(5) (b) 2. No later than every 3rd year after the date specified in subd.
201., each municipal utility or retail electric cooperative shall notify the department
21whether it has elected to contribute to the programs established under sub. (2) (a)
22or (b) 1. for a 3-year period.
AB545, s. 19
23Section
19. 16.957 (5) (c) of the statutes is amended to read:
AB545,6,324
16.957
(5) (c)
Full contribution. If a municipal utility or retail electric
25cooperative elects under par. (b) 1. or 2. to contribute to the programs established
1both under sub. (2) (a)
and under sub. (2) (b) 1., it shall pay 100% of the public benefits
2fees that it charges under par. (a) to the department in each fiscal year of the 3-year
3period for which it has made the election.
AB545, s. 20
4Section
20. 16.957 (5) (d) (intro.), 1. and 2. of the statutes are repealed.
AB545, s. 21
5Section
21. 16.957 (5) (d) 3. (intro.) and 3. a. of the statutes are consolidated,
6renumbered 16.957 (5) (dm) and amended to read:
AB545,6,137
16.957
(5) (dm)
Commitment to community spending. If
the a municipal utility
8or retail electric cooperative elects not to contribute to
any of the programs
9established under sub. (2) (a)
or (b) 1., the municipal utility or retail electric
10cooperative shall, in each fiscal year of the 3-year period for which it elects not to
11contribute under par. (b) 1. or 2.,
do all of the following: a. Spend 50% spend 100% 12of the public benefits fees that it charges under par. (a) on
commitment to community 13programs
for low-income assistance.
AB545, s. 22
14Section
22. 16.957 (5) (d) 3. b. of the statutes is repealed.
AB545, s. 23
15Section
23. 16.957 (5) (e) (intro.) and 1. of the statutes are consolidated,
16renumbered 16.957 (5) (e) and amended to read:
AB545,7,217
16.957
(5) (e)
Wholesale supplier credit. If a wholesale supplier has established
18a
commitment to community program
for low-income assistance or an energy
19conservation program, a municipal utility or retail electric cooperative that is a
20customer or member of the wholesale supplier may
do any of the following: 1. Include 21include an amount equal to the product of the municipal utility's or retail electric
22cooperative's wholesale supply percentage and the amount that the wholesale
23supplier has spent on
low-income assistance the commitment to community
24program in a fiscal year in calculating the amount that the municipal utility or retail
1electric cooperative has spent on
low-income assistance a commitment to
2community program in that fiscal year under par.
(d) 2. b. or 3. a (dm).
AB545, s. 24
3Section
24. 16.957 (5) (e) 2. of the statutes is repealed.
AB545, s. 25
4Section
25. 16.957 (5) (f) of the statutes is amended to read:
AB545,7,85
16.957
(5) (f)
Joint programs. Municipal utilities or retail electric cooperatives
6may establish joint commitment to community programs, except that each municipal
7utility or retail electric cooperative that participates in a joint program is required
8to comply with the spending requirements under par.
(d) (dm).
AB545, s. 26
9Section
26. 16.957 (5) (g) 1. a. of the statutes is amended to read:
AB545,7,1310
16.957
(5) (g) 1. a. An accounting of public benefits fees charged to customers
11or members under par. (a) in the fiscal year and expenditures on commitment to
12community programs under par.
(d) (dm), including any amounts included in the
13municipal utility's or retail electric cooperative's calculations under par. (e).
AB545, s. 27
14Section
27. 25.96 of the statutes is amended to read:
AB545,7,19
1525.96 Utility public benefits fund. There is established a separate
16nonlapsible trust fund designated as the utility public benefits fund, consisting of
17deposits by the public service commission under s. 196.374 (3), public benefits fees
18received under s. 16.957 (4) (a) and (5) (c)
and (d) and contributions received under
19s. 16.957 (2) (c) 4. and (d) 2.
AB545, s. 28
20Section
28. 196.374 (3) of the statutes is amended to read:
AB545,8,821
196.374
(3) In 2000, 2001 and 2002, the commission shall require each utility
22to spend a decreasing portion of the amount determined under sub. (2) on programs
23specified in sub. (2) and contribute the remaining portion of the amount to the
24commission for deposit in the fund. In each year after 2002, each
Each utility shall
25contribute the entire amount determined under sub. (2) to the commission for deposit
1in the fund. The commission shall ensure in rate-making orders that a utility
2recovers from its ratepayers the amounts spent on programs or contributed to the
3fund under this subsection.
The commission shall allow each utility the option of
4continuing to use, until January 1, 2002, the moneys that it has recovered under s.
5196.374 (3), 1997 stats., to administer the programs that it has funded under s.
6196.374 (1), 1997 stats. The commission may allow each utility to spend additional
7moneys on the programs specified in sub. (2) if the utility otherwise complies with
8the requirements of this section and s. 16.957 (4).
AB545, s. 29
9Section
29. 196.374 (4) of the statutes is amended to read:
AB545,8,1610
196.374
(4) If the department notifies the commission under s. 16.957 (2) (b)
112. that the department has reduced funding for energy conservation and efficiency
12and renewable resource programs
by an amount that is greater than the portion of
13the public benefits fee specified in s. 16.957 (4) (c) 2., the commission shall
reduce 14make a corresponding reduction in the amount that utilities are required to spend
15on programs or contribute to the fund under sub. (3)
by the portion of the reduction
16that exceeds the amount of public benefits fees specified in s. 16.957 (4) (c) 2.
AB545,8,1818
(1)
This act takes effect on July 1, 2002.