LRB-3276/3
MDK:kg&cs:jf
2001 - 2002 LEGISLATURE
January 28, 2002 - Introduced by Representatives Gronemus, Petrowski, Black,
J. Fitzgerald, Pocan, Sykora, Hines, Bies, Lippert, Carpenter, Berceau and
Freese, cosponsored by Senators S. Fitzgerald, George and
Risser. Referred
to Committee on Energy and Utilities.
AB754,1,6
1An Act to amend 20.505 (4) (h); and
to create 15.07 (1) (d), 15.105 (27), 16.956,
220.505 (4) (s), 25.17 (1) (dm) and 25.98 of the statutes;
relating to: creating an
3electric pollution board, establishing an electric pollution fund, requiring
4electric utilities and cooperative associations to remedy certain current-flow
5problems, imposing a surcharge on electric bills, granting rule-making
6authority, making an appropriation, and providing penalties.
Analysis by the Legislative Reference Bureau
This bill requires electric utilities and cooperative associations to remedy
problems associated with their plant or equipment that result in an objectionable
flow of current at the premises of a customer or member. An objectionable flow of
current is defined as a steady state of current for five seconds or more over the
grounding conductor of an electric utility or cooperative association. An electric
utility or cooperative association must remedy such a problem no later than one year
after it is discovered. In addition, no later than January 1, 2012, an electric utility
or cooperative association must remedy all such problems, except for objectionable
flows of current that are discovered in 2011, which must be remedied no later than
one year after discovery. An electric utility or cooperative association that fails to
comply with a one-year deadline under the bill is subject to a forfeiture of not more
than $1,000 for each day over the deadline. An electric utility that fails to comply
with the January 1, 2012, deadline is subject to a forfeiture of not more than
$500,000.
The bill also creates a rebuttable presumption that an objectionable flow of
current is the result of the electric utility's or cooperative association's plant or
equipment, not the customer's or member's plant or equipment. Also, the bill allows
a customer or member who is injured as a result of an electric utility's or cooperative
association's failure to remedy such a problem to sue for treble damages.
The bill also creates an electric pollution board (board) that makes grants to
reimburse electric utilities and cooperative associations that remedy problems
described above. The source of funding for the grants is the electric pollution fund
(fund), which is created by the bill. The fund consists of a one-twentieth of a cent
per kilowatt hour surcharge that electric utilities and cooperative associations must
assess on customer and member bills. The board may also make grants to customers
or members, or groups of customers or members, if the board is satisfied that an
electric utility or cooperative association refuses or is unable to remedy a problem
and another competent person has performed the remedy. In addition, the bill
prohibits the board from making any award unless the electric utility, cooperative
association, or other person documents to the satisfaction of the board that remedial
activities are complete. Also, the bill requires the board to promulgate rules for
making the awards, and the rules must include a priority system for making awards
based on the severity of the objectionable flow of current.
The board consists of the attorney general, or his or her designee, and eight
other members. Two of the other members are chief executive officers of
investor-owned electric utilities, or their designees, one of whom is appointed by the
speaker of the assembly and the other of whom is appointed by the senate leader of
the opposite party. The following other members are appointed by the governor with
senate confirmation: 1) two professors or professors emeritus of electrical
engineering, one of whom is from the University of Wisconsin System and the other
of whom is from the Milwaukee School of Engineering; 2) a physician recommended
by the Wisconsin State Medical Society; 3) a customer of an investor-owned electric
utility; 4) a customer of a municipal electric utility; and 5) a member of a cooperative
association recommended by the Wisconsin Federation of Cooperatives. Except for
the attorney general, no member of the board may serve more than two terms.
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:
AB754, s. 1
1Section
1. 15.07 (1) (d) of the statutes is created to read:
AB754,3,22
15.07
(1) (d) Except as provided in s. 15.105 (27) (a) 1. and 2., no member of the
3electric pollution board may be an officer, director, or employee of an electric public
1utility or a cooperative association organized under ch. 185 for the purpose of
2providing electricity to its members only.
AB754, s. 2
3Section
2. 15.105 (27) of the statutes is created to read:
AB754,3,74
15.105
(27) Electric pollution board. (a) There is created an electric
5pollution board that is attached to the department of administration under s. 15.03.
6The board shall consist of the attorney general, or his or her designee, and the
7following members appointed for 4-year terms:
AB754,3,98
1. One chief executive officer of an investor-owned electric public utility, or his
9or her designee, appointed by the speaker of the assembly.
AB754,3,1210
2. One chief executive officer of an investor-owned electric public utility, or his
11or her designee, appointed by the senate leader of the party other than the party of
12the speaker of the assembly.
AB754,3,1413
3. One professor or professor emeritus of electrical engineering of the
14University of Wisconsin System.
AB754,3,1615
4. One professor or professor emeritus of electrical engineering of the
16Milwaukee School of Engineering.
AB754,3,1717
5. One physician recommended by the Wisconsin State Medical Society.
AB754,3,1818
6. One customer of an investor-owned electric public utility.
AB754,3,1919
7. One customer of a municipally owned electric public utility.
AB754,3,2220
8. One member of a cooperative association, organized under ch. 185 for the
21purpose of providing electricity to its members only and recommended by the
22Wisconsin Federation of Cooperatives.
AB754,3,2423
(b) The members specified in par. (a) 3. to 8. shall be appointed by the governor
24with senate confirmation.
AB754,4,2
1(c) No member of the electric pollution board specified in par. (a) 1. to 8. may
2serve more than 2 terms.
AB754, s. 3
3Section
3. 16.956 of the statutes is created to read:
AB754,4,4
416.956 Electric pollution program. (1) Definitions. In this section:
AB754,4,55
(a) "Board" means the electric pollution board.
AB754,4,76
(b) "Electric cooperative" means a cooperative association organized under ch.
7185 for the purpose of providing electric service to its members only.
AB754,4,98
(c) "Electric utility" means a public utility, as defined in s. 196.01 (5), that
9produces electricity.
AB754,4,1010
(d) "Fund" means the electric pollution fund under s. 25.98.
AB754,4,1211
(e) "Objectionable flow of current" means a steady state of current for 5 seconds
12or more over the grounding conductor of an electric utility or cooperative.
AB754,4,16
13(2) Duty to remedy. (a) An electric utility or cooperative shall remedy any
14problems associated with its plant or equipment that result in an objectionable flow
15of current at the premises of a customer or member no later than one year after
16discovery of the objectionable flow of current.
AB754,4,2117
(b) 1. Notwithstanding par. (a), and except as provided in subd. 2., no later than
18January 1, 2012, each electric utility and cooperative shall remedy all problems
19associated with their plant or equipment that result in an objectionable flow of
20current at the premises of any of the electric utility's or cooperative's customers or
21members.
AB754,4,2522
2. If an objectionable flow of current is discovered at a customer's or member's
23premises in 2011, the electric utility or cooperative shall remedy all problems
24associated with its plant and equipment that result in that objectionable flow of
25current no later than one year after it is discovered.
AB754,5,4
1(c) For purposes of pars. (a) and (b), there is a rebuttable presumption that an
2objectionable flow of current at a customer's or member's premises is the result of
3problems associated with the electric utility's or cooperative's plant or equipment,
4not the customer's or member's plant or equipment.
AB754,5,95
(d) The board shall promulgate rules establishing the standards applicable to
6remedies under pars. (a) and (b). In promulgating the rules, the board shall consider
7the recommendations of the Electric Power Research Institute, the standards of the
8Institute of Electrical and Electronics Engineers, Inc., and the Information
9Technology Industry Council.
AB754,5,1210
(e) Any customer or member injured as a result of an electric utility's or
11cooperative's failure to remedy a problem under par. (a) or (b) may bring a cause of
12action for treble damages.
AB754,5,21
13(3) Awards from fund. (a) The board shall promulgate rules establishing
14requirements and procedures for the board to make awards from the fund to
15reimburse electric utilities and cooperatives for remedies under sub. (2) (a) and (b).
16The rules shall also include requirements and procedures for making awards to
17customers or members, or groups of customers or members, of electric utilities or
18cooperatives that refuse or are unable to perform remedies under sub. (2) (a) or (b).
19The rules shall include a priority system for making awards based on the severity
20of the objectionable flow of current. The board may not make an award unless all of
21the following are satisfied:
AB754,5,2522
1. The remedy is performed by the electric utility or cooperative that provides
23retail service to the customer or member at whose premises there is an objectionable
24flow of current or, if the board is satisfied that that electric utility or cooperative has
25refused or is unable to perform the remedy, by another competent person.
AB754,6,3
12. The electric utility, cooperative, or other person that performs the remedy
2documents to the satisfaction of the board that remedial activities for a particular
3customer or member or group of customers or members have been completed.
AB754,6,54
(b) The board may contract for assistance in making awards under par. (a),
5including engineering assistance necessary to prioritize awards.
AB754,6,11
6(4) Surcharges. No later than the first day of the 6th month beginning after
7the effective date of this subsection .... [revisor inserts date], each electric utility and
8cooperative shall assess a surcharge of one-twentieth of a cent per kilowatt hour on
9customer and member electric bills and pay the surcharge to the board. The
10surcharges that are collected by an electric utility or cooperative shall be considered
11trust funds of the board and not income of the electric utility or cooperative.
AB754,6,12
12(5) Staff. The department shall provide staff services to the board.
AB754,6,15
13(6) Penalties. (a) An electric utility or cooperative that violates sub. (2) (a) or
14(b) 2. may be required to forfeit not more than $1,000 for each violation. Each day
15of continued violation constitutes a separate violation.
AB754,6,1716
(b) An electric utility or cooperative that violates sub. (2) (b) 1. may be required
17to forfeit not more than $500,000.
AB754, s. 4
18Section
4. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
19the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
AB754,7,143
20.505
(4) (h)
Program services. The amounts in the schedule to carry out the
4responsibilities of divisions, commissions, and boards attached to the department of
5administration, other than the board on aging and long-term care, the adolescent
6pregnancy prevention and pregnancy services board, and the public records board,
7and to carry out the responsibilities of special and executive committees. All moneys
8received from fees which are authorized by law or administrative rule to be collected
9by any division, board
, or commission attached to the department, other than the
10board on aging and long-term care, the adolescent pregnancy prevention and
11pregnancy services board,
the electric pollution board, and the public records board,
12and all moneys received from fees that are authorized by law or executive order to
13be collected by any special or executive committee shall be credited to this
14appropriation account and used to carry out the purposes for which collected.
AB754, s. 6
15Section
6. 20.505 (4) (s) of the statutes is created to read:
AB754,7,1816
20.505
(4) (s)
Electric pollution remediation awards. From the electric
17pollution fund, the amounts in the schedule for awards by the electric pollution board
18under s. 16.956 (3).
AB754, s. 7
19Section
7. 25.17 (1) (dm) of the statutes is created to read:
AB754,7,2020
25.17
(1) (dm) Electric pollution fund (s. 25.98);
AB754, s. 8
21Section
8. 25.98 of the statutes is created to read: