SB459-engrossed,21,2218 2. In a proceeding in which a wholesale supplier is a party, the commission shall
19not order or otherwise impose any renewable resource requirements on the
20wholesale supplier if the commission has fulfilled all of its duties under s. 196.378
21and the wholesale supplier's members are in the aggregate substantially in
22compliance with s. 196.378 (2).
SB459-engrossed,22,223 (d) Transmission facilities. In a proceeding regarding a request by a public
24utility or wholesale supplier to acquire, construct, install, or operate an electric

1transmission facility or associated equipment, the commission shall not order or
2otherwise impose requirements on the public utility or wholesale supplier.
SB459-engrossed, s. 63 3Section 63. 196.025 (1m) (title) of the statutes is created to read:
SB459-engrossed,22,44 196.025 (1m) (title) Transmission corridors.
SB459-engrossed, s. 64 5Section 64. 196.025 (2) (title) of the statutes is created to read:
SB459-engrossed,22,66 196.025 (2) (title) Environmental impacts.
SB459-engrossed, s. 65 7Section 65. 196.025 (2m) (title) of the statutes is created to read:
SB459-engrossed,22,88 196.025 (2m) (title) Coordination with department of natural resources.
SB459-engrossed, s. 66 9Section 66. 196.025 (3) (title) of the statutes is created to read:
SB459-engrossed,22,1010 196.025 (3) (title) Reliability reports.
SB459-engrossed, s. 67 11Section 67. 196.025 (4) (title) of the statutes is created to read:
SB459-engrossed,22,1212 196.025 (4) (title) Small-scale generation incentives.
SB459-engrossed, s. 68 13Section 68. 196.025 (5) (title) of the statutes is created to read:
SB459-engrossed,22,1414 196.025 (5) (title) Market power study.
SB459-engrossed, s. 69 15Section 69. 196.374 of the statutes is repealed and recreated to read:
SB459-engrossed,22,17 16196.374 Energy efficiency and renewable resource programs. (1)
17Definitions. In this section:
SB459-engrossed,22,1918 (a) "Agricultural producer" means a person engaged in an agricultural activity,
19as defined in s. 101.10 (1) (a).
SB459-engrossed,22,2220 (b) "Commitment to community program" means an energy efficiency or load
21management program by or on behalf of a municipal utility or retail electric
SB459-engrossed,22,2523 (c) "Customer application of renewable resources" means the generation of
24energy from renewable resources that takes place on the premises of a customer of
25an energy utility or municipal utility or a member of a retail electric cooperative.
1(d) "Energy efficiency program" means a program for reducing the usage or
2increasing the efficiency of the usage of energy by a customer or member of an energy
3utility, municipal utility, or retail electric cooperative. "Energy efficiency program"
4does not include load management.
SB459-engrossed,23,65 (e) "Energy utility" means an investor-owned electric or natural gas public
SB459-engrossed,23,127 (em) "Large energy customer" means a customer of an energy utility that owns
8or operates a facility in the energy utility's service area that has an energy demand
9of at least 1,000 kilowatts of electricity per month or of at least 10,000 decatherms
10of natural gas per month and that, in a month, is billed at least $60,000 for electric
11service, natural gas service, or both, for all of the facilities of the customer within the
12energy utility's service territory.
SB459-engrossed,23,1713 (f) "Load management program" means a program to allow an energy utility,
14municipal utility, wholesale electric cooperative, as defined in s. 16.957 (1) (v), retail
15electric cooperative, or municipal electric company, as defined in s. 66.0825 (3) (d),
16to control or manage daily or seasonal customer demand associated with equipment
17or devices used by customers or members.
SB459-engrossed,23,1818 (g) "Local unit of government" has the meaning given in s. 23.24 (4) (a) 1.
SB459-engrossed,23,1919 (h) "Municipal utility" has the meaning given in s. 16.957 (1) (q).
SB459-engrossed,23,2320 (i) "Ordered program" means an energy efficiency or renewable resource
21program that an energy utility commenced on or after January 1, 2001, under a
22commission order issued on or after January 1, 2001, and in effect before the effective
23date of this paragraph .... [revisor inserts date].
SB459-engrossed,24,224 (j) "Renewable resource" means a resource that derives energy from any source
25other than coal, petroleum products, nuclear power or, except as used in a fuel cell,

1natural gas. "Renewable resource" includes resources deriving energy from any of
2the following:
SB459-engrossed,24,33 1. Solar energy.
SB459-engrossed,24,44 2. Wind power.
SB459-engrossed,24,55 3. Water power.
SB459-engrossed,24,66 4. Biomass.
SB459-engrossed,24,77 5. Geothermal technology.
SB459-engrossed,24,88 6. Tidal or wave action.
SB459-engrossed,24,109 7. Fuel cell technology that uses, as determined by the commission, a renewable
SB459-engrossed,24,1611 (k) "Renewable resource program" means a program for encouraging the
12development or use of customer applications of renewable resources, including
13educating customers or members about renewable resources, encouraging
14customers or members to use renewable resources, and encouraging the transfer of
15new or emerging technologies from research, development, and demonstration to
16commercial implementation.
SB459-engrossed,24,1717 (L) "Retail electric cooperative" has the meaning given in s. 16.957 (1) (t).
SB459-engrossed,24,1818 (n) "Wholesale supplier" has the meaning given in s. 16.957 (1) (w).
SB459-engrossed,24,1919 (o) "Wholesale supply percentage" has the meaning given in s. 16.957 (1) (x).
SB459-engrossed,25,2 20(2) Energy efficiency and renewable resource programs. (a) Statewide
1. The energy utilities in this state shall collectively establish and fund
22statewide energy efficiency and renewable resource programs. The energy utilities
23shall contract, on the basis of competitive bids, with one or more persons to develop
24and administer the programs. The utilities may not execute a contract under this
25subdivision unless the commission has approved the contract. The commission shall

1require each energy utility to spend the amount required under sub. (3) (b) 2. to fund
2statewide energy efficiency and renewable resource programs.
SB459-engrossed,25,73 2. The purpose of the programs under this paragraph shall be to help achieve
4environmentally sound and adequate energy supplies at reasonable cost, consistent
5with the commission's responsibilities under s. 196.025 (1) (ar) and the utilities'
6obligations under this chapter. The programs shall include, at a minimum, all of the
SB459-engrossed,25,108 a. Components to address the energy needs of residential, commercial,
9agricultural, institutional, and industrial energy users and local units of
SB459-engrossed,25,2111 b. Components to reduce the energy costs incurred by local units of government
12and agricultural producers, by increasing the efficiency of energy use by local units
13of government and agricultural producers. The commission shall ensure that not
14less than 10 percent of the moneys utilities are required to spend under subd. 1. or
15sub. (3) (b) 2. is spent annually on programs under this subdivision except that, if the
16commission determines that the full amount cannot be spent on cost-effective
17programs for local units of government and agricultural producers, the commission
18shall ensure that any surplus funds be spent on programs to serve commercial,
19institutional, and industrial customers. A local unit of government that receives
20assistance under this subd. 2. b. shall apply all costs savings realized from the
21assistance to reducing the property tax levy.
SB459-engrossed,25,2522 c. Initiatives and market strategies that address the needs of individuals or
23businesses facing the most significant barriers to creation of or participation in
24markets for energy efficient products that the individual or business manufactures
25or sells or energy efficiency services that the individual or business provides.
1d. Initiatives for research and development regarding the environmental and
2economic impacts of energy use in this state.
SB459-engrossed,26,73 3. The commission may not require an energy utility to administer or fund any
4energy efficiency or renewable resource program that is in addition to the programs
5required under subd. 1. and any ordered program of the utility. This subdivision does
6not limit the authority of the commission to enforce an energy utility's obligations
7under s. 196.378.
SB459-engrossed,26,148 (b) Utility-administered programs. 1. An energy utility may, with commission
9approval, administer or fund one or more energy efficiency programs that is limited
10to, as determined by the commission, large commercial, industrial, institutional, or
11agricultural customers in its service territory. An energy utility shall pay for a
12program under this subdivision with a portion of the amount required under sub. (3)
13(b) 2., as approved by the commission. The commission may not order an energy
14utility to administer or fund a program under this subdivision.
SB459-engrossed,26,1815 2. An energy utility may, with commission approval, administer or fund an
16energy efficiency or renewable resource program that is in addition to the programs
17required under par. (a) or authorized under subd. 1. The commission may not order
18an energy utility to administer or fund a program under this subdivision.
SB459-engrossed,26,2419 3. An energy utility that administers or funds a program under subd. 1. or 2.
20or an ordered program may request, and the commission may approve, to modify or
21discontinue, in whole or in part, the ordered program. An energy utility may request
22the establishment, modification, or discontinuation of a program under subd. 1. or
232. at any time and shall request the modification or discontinuation of an ordered
24program as part of a proceeding under sub. (3) (b) 1.
1(c) Large energy customer programs. A customer of an energy utility may, with
2commission approval, administer and fund its own energy efficiency programs if the
3customer satisfies the definition of a large energy customer for any month in the 12
4months preceding the date of the customer's request for approval. A customer may
5request commission approval at any time. A customer that funds a program under
6this paragraph may deduct the amount of the funding from the amount the energy
7utility may collect from the customer under sub. (5) (b). If the customer deducts the
8amount of the funding from the amount the energy utility may collect from the
9customer under sub. (5) (b), the energy utility shall credit the amount of the funding
10against the amount the energy utility is required to spend under sub. (3) (b) 2.
SB459-engrossed,27,20 11(3) Commission duties. (a) In general. The commission shall have oversight
12of programs under sub. (2). The commission shall maximize coordination of program
13delivery, including coordination between programs under subs. (2) (a) 1., (b) 1. and
142., and (c) and (7), ordered programs, low-income weatherization programs under s.
1516.957, renewable resource programs under s. 196.378, and other energy efficiency
16or renewable resource programs. The commission shall cooperate with the
17department of natural resources to ensure coordination of energy efficiency and
18renewable resource programs with air quality programs and to maximize and
19document the air quality improvement benefits that can be realized from energy
20efficiency and renewable resource programs.
SB459-engrossed,28,421 (b) Programs and funding. 1. At least every 4 years, after notice and
22opportunity to be heard, the commission shall, by order, evaluate the energy
23efficiency and renewable resource programs under sub. (2) (a) 1., (b) 1. and 2., and
24(c) and ordered programs and set or revise goals, priorities, and measurable targets
25for the programs. The commission shall give priority to programs that moderate the

1growth in electric and natural gas demand and usage, facilitate markets and assist
2market providers to achieve higher levels of energy efficiency, promote energy
3reliability and adequacy, avoid adverse environmental impacts from the use of
4energy, and promote rural economic development.
SB459-engrossed,28,115 2. The commission shall require each energy utility to spend 1.2 percent of its
6annual operating revenues to fund the utility's programs under sub. (2) (b) 1., the
7utility's ordered programs, and the utility's share of the statewide energy efficiency
8and renewable resource programs under sub. (2) (a) 1. Subject to approval under
9subd. 3., the commission may require each energy utility to spend a larger percentage
10of its annual operating revenues to fund these programs. The commission may make
11such a requirement based on the commission's consideration of all of the following:
SB459-engrossed,28,1512 a. Studies of potential energy-efficiency improvements that could be made in
13this state, including at least one study completed within the preceding 2 years that
14provides a prospective 5-year and 10-year estimate of such potential that is
SB459-engrossed,28,1716 b. The potential short-term and long-term impacts on electric and natural gas
17rates and alternative means to mitigate such impacts.
SB459-engrossed,28,2018 c. The impact on the continuation and effectiveness of existing energy efficiency
19and renewable resource programs, and the ability of such programs to capture
20time-limited and cost-effective energy-efficiency opportunities.
SB459-engrossed,28,2221 d. The impact on the reliability and adequacy of systems for the generation and
22transmission of electricity and the transmission of natural gas.
SB459-engrossed,28,2323 e. Societal impacts.
SB459-engrossed,28,2524 f. The potential for displacing or delaying construction of electric generating
25plants and transmission lines.
1g. Economic impacts that are likely to accrue from reducing state and private
2expenditures on coal, natural gas, fuel oil, and other fossil fuel imports.
SB459-engrossed,29,33 h. Any other relevant factors.
SB459-engrossed,29,184 3. The commission shall submit to the joint committee on finance any proposal
5to require each energy utility to spend a larger percentage of its annual operating
6revenues than the percentage specified in subd. 2. (intro.) to fund the programs
7specified in subd. 2. (intro.). If the cochairpersons of the committee do not notify the
8commission within 10 working days after the commission submits such a proposal
9that the committee has scheduled a meeting to review the proposal, the commission
10may require each energy utility to spend the percentage specified in the proposal.
11If, within 10 working days after the commission submits a proposal, the
12cochairpersons of the committee notify the commission that the committee has
13scheduled a meeting to review the proposal, but, within 90 days of providing the
14notice, the committee does not object to the proposal, the commission may require
15each energy utility to spend the percentage specified in the proposal. If, within 90
16days after providing the notice, the committee objects to the proposal, the
17commission may not require each energy utility to spend the percentage specified in
18the proposal.
SB459-engrossed,29,1919 (c) Reviews and approvals. The commission shall do all of the following:
SB459-engrossed,29,2120 1. Review and approve contracts under sub. (2) (a) 1. between the energy
21utilities and program administrators.
SB459-engrossed,30,222 2. Review requests under sub. (2) (b). The commission may condition its
23approval of a request under sub. (2) (b) as necessary to protect the public interest.
24The commission shall approve a request under sub. (2) (b) 1. or 2. if the commission

1determines that a proposed energy efficiency or renewable resource program is in the
2public interest and satisfies all of the following:
SB459-engrossed,30,43 a. The program has specific savings targets and performance goals approved
4by the commission.
SB459-engrossed,30,55 b. The program is subject to independent evaluation by the commission.
SB459-engrossed,30,136 (d) Audits. Annually, the commission shall contract with one or more
7independent auditors to prepare a financial and performance audit of the programs
8specified in par. (b) 1. The purpose of the performance audit shall be to evaluate the
9programs and measure the performance of the programs against the goals and
10targets set by the commission under par. (b) 1. The person or persons with whom the
11energy utilities contract for program administration under sub. (2) (a) 1. shall pay
12the costs of the audits from the amounts paid under the contracts under sub. (2) (a)
SB459-engrossed,30,1614 (e) Reports. Annually, the commission shall prepare and post on the
15commission's Internet site a report and submit a summary of not more than 2 pages
16to the legislature under s. 13.172 (2). The reports shall describe each of the following:
SB459-engrossed,30,1917 1. The expenses of the commission, utilities, and program administrators
18contracted under sub. (2) (a) 1. in administering or participating in the programs
19under sub. (2) (a) 1.
SB459-engrossed,30,2220 2. The effectiveness of the programs specified in par. (b) 1. and sub. (7) in
21reducing demand for electricity and increasing the use of renewable resources owned
22by customers or members.
SB459-engrossed,30,2323 3. The results of audits under par. (d).
SB459-engrossed,30,2424 4. Any other information required by the commission.
1(f) Rules. The commission shall promulgate rules to establish all of the
SB459-engrossed,31,63 1. Procedures for energy utilities to collectively contract with program
4administrators for administration of statewide programs under sub. (2) (a) 1. and to
5receive contributions from municipal utilities and retail electric cooperatives under
6sub. (7) (b) 2.
SB459-engrossed,31,97 2. Procedures and criteria for commission review and approval of contracts for
8administration of statewide programs under sub. (2) (a) 1., including criteria for the
9selection of program administrators under sub. (2) (a) 1.
SB459-engrossed,31,1210 3. Procedures and criteria for commission review and approval of
11utility-administered programs under sub. (2) (b) 1. and 2., customer programs under
12sub. (2) (c), and requests under sub. (2) (b) 3.
SB459-engrossed,31,1513 4. Minimum requirements for energy efficiency and renewable resource
14programs under sub. (2) (a) 1. and customer energy efficiency programs under sub.
15(2) (c).
SB459-engrossed,31,19 16(4) Discrimination prohibited; competition. (a) In implementing programs
17under sub. (2) (a) 1., including the awarding of grants or contracts, a person who
18contracts with the utilities under sub. (2) (a) 1., or a person who subcontracts with
19such a person:
SB459-engrossed,31,2220 1. May not discriminate against an energy utility or its affiliate or a wholesale
21supplier or its affiliate solely on the basis of its status as an energy utility or its
22affiliate or wholesale supplier or its affiliate.
SB459-engrossed,31,2423 2. Shall provide services to utility customers on a nondiscriminatory basis and
24subject to a customer's choice.
1(b) An energy utility that provides financing under an energy efficiency
2program under sub. (2) (b) 1. or 2. for installation, by a customer, of energy efficiency
3or renewable resource processes, equipment, or appliances, or an affiliate of such a
4utility, may not sell to or install for the customer those processes, equipment,
5appliances, or related materials. The customer shall acquire the installation of the
6processes, equipment, appliances, or related materials from an independent
7contractor of the customer's choice.
SB459-engrossed,32,10 8(5) Cost recovery. (a) Rate-making orders. The commission shall ensure in
9rate-making orders that an energy utility recovers from its ratepayers the amounts
10the energy utility spends for programs under sub. (2) (a) 1.
SB459-engrossed,32,1611 (b) Large energy customers. 1. Except as provided in sub. (2) (c) and par. (bm)
122., if the commission has determined that a customer of an energy utility is a large
13energy customer under 2005 Wisconsin Act .... (this act), section 102 (8) (b), then,
14each month, the energy utility shall collect from the customer, for recovery of
15amounts under par. (a), the amount determined by the commission under 2005
16Wisconsin Act .... (this act), section 102 (8) (c).
SB459-engrossed,33,517 2. A customer of an energy utility that the commission has not determined is
18a large energy customer under 2005 Wisconsin Act .... (this act), section 102 (8) (b),
19may petition the commission for a determination that the customer is a large energy
20customer. The commission shall determine that a petitioner is a large energy
21customer if the petitioner satisfies the definition of large energy customer for any
22month in the 12 months preceding the date of the petition. If the commission makes
23such a determination, the commission shall also determine the amount that the
24energy utility may collect from the customer each month for recovery of the amounts
25under par. (a). The commission shall determine an amount that ensures that the

1amount collected from the customer is similar to the amounts collected from other
2customers that have a similar level of energy costs as the customer. Except as
3provided in sub. (2) (c) and par. (bm) 2., each month, the energy utility shall collect
4from the customer, for recovery of amounts under par. (a), the amount determined
5by the commission under this subdivision.
SB459-engrossed,33,146 (bm) Allocation proposal. 1. The commission shall commence a proceeding for
7for creating a proposal for allocating within different classes of customers an
8equitable distribution of the recovery of the amounts under par. (a) by all energy
9utilities. The purpose of the allocation is to ensure that customers of an energy utility
10within a particular class are treated equitably with respect to customers of other
11energy utilities within the same class. No later than December 31, 2008, the
12commission shall submit the proposal to the governor and chief clerk of each house
13of the legislature for distribution to the appropriate standing committees of the
14legislature under s. 13.172 (3).
SB459-engrossed,33,1815 2. If, by July 1, 2009, legislation based on the proposal under subd. 1. has not
16been enacted, the commission shall, beginning on July 1, 2009, annually increase the
17amount that an energy utility may recover from a large energy customer each month
18under par. (b) only by a percentage that is the lesser of the following:
SB459-engrossed,33,2019 a. The percentage increase in the energy utility's operating revenues during the
20preceding year.
SB459-engrossed,33,2321 b. The percentage increase in the consumer price index for all urban
22consumers, U.S. city average, as determined by the U.S. department of labor, during
23the preceding year.
1(c) Accounting. The commission may prescribe the accounting treatment of
2energy utility expenditures required under this section, including the use of any
3escrow accounting.