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.
SB459-engrossed,31,2
1(f) Rules. The commission shall promulgate rules to establish all of the
2following:
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.
SB459-engrossed,32,7
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.
SB459-engrossed,34,3
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.
SB459-engrossed,34,74 (d) Equitable contributions. Subject to pars. (b) and (bm) 2., the commission
5shall ensure that the cost of energy efficiency and renewable resource programs is
6equitably divided among customer classes so that similarly situated ratepayers
7contribute equivalent amounts for the programs.
SB459-engrossed,34,15 8(5m) Benefit and grant opportunities. (a) The commission shall ensure that,
9on an annual basis, each customer class of an energy utility has the opportunity to
10receive grants and benefits under energy efficiency programs in an amount equal to
11the amount that is recovered from the customer class under sub. (5) (a). Biennially,
12the commission shall submit a report to the governor, and the chief clerk of each
13house of the legislature for distribution to the legislature under s. 13.172 (2), that
14summarizes the total amount recovered from each customer class and the total
15amount of grants made to, and benefits received by, each customer class.
SB459-engrossed,34,2116 (b) The commission shall ensure that customers throughout the state have an
17equivalent opportunity to receive the benefits of the programs under sub. (2) (a) 1.
18and (b) 1. The commission shall ensure that statewide programs are designed to
19ensure that retail customers in areas not served by programs under sub. (2) (b) 1.
20receive equivalent opportunities as those in areas served by programs under sub. (2)
21(b) 1.
SB459-engrossed,35,2 22(6) Annual statements. Annually, the commission shall prepare a statement
23that describes the programs under sub. (2) (a) 1., (b) 1. and 2., and (c), and ordered
24programs, administered or funded by the energy utility and presents cost and benefit

1information for those programs. An energy utility shall provide each of its customers
2with a copy of the statement.
SB459-engrossed,35,9 3(7) Municipal utilities and retail electric cooperatives. (a) Requirement to
4charge fees.
1. Each retail electric cooperative and municipal utility shall charge a
5monthly fee to each customer or member in an amount that is sufficient for the retail
6electric cooperative or municipal utility to collect an annual average of $8 per meter.
7A retail electric cooperative or municipal utility may determine the amount that a
8particular class of customers or members is required to pay under this subdivision
9and may charge different fees to different classes of customers or members.
SB459-engrossed,35,1210 2. Notwithstanding subd. 1., in any month, the monthly fee under subd. 1. may
11not exceed 1.5 percent of the total of every other charge for which the member or
12customer is billed for that month or $375 per month, whichever is less.
SB459-engrossed,35,1713 (b) Commitment to community programs. 1. Except as provided in subd. 2.,
14each retail electric cooperative and municipal utility shall spend the fees that it
15charges under par. (a) on commitment to community programs. The purpose of the
16programs under this paragraph shall be to help achieve environmentally sound and
17adequate energy supplies at reasonable cost.
SB459-engrossed,36,218 2. No later than October 1, 2007, and no later than every 3rd year after that
19date, each municipal utility or retail electric cooperative shall notify the commission
20whether it has elected to contribute the fees that it charges under par. (a) to statewide
21programs established under sub. (2) (a) 1. in each year of the 3-year period for which
22it has made the election. If a municipal utility or retail electric cooperative elects to
23contribute to the statewide programs established under sub. (2) (a) 1., the utility or
24cooperative shall contribute the fees that it collects under par. (a) to the payment of
25contracts under sub. (2) (a) 1. for administration of the statewide programs, as

1specified in the rules under sub. (3) (f) 1., in each year of the 3-year period for which
2the utility or cooperative has made the election.
SB459-engrossed,36,103 (c) Wholesale supplier credit. If a wholesale supplier has established an energy
4efficiency or load management program, a municipal utility or retail electric
5cooperative that is a customer or member of the wholesale supplier may include an
6amount equal to the product of the municipal utility's or retail electric cooperative's
7wholesale supply percentage and the amount that the wholesale supplier has spent
8on energy efficiency or load management programs in a year in calculating the
9amount that the municipal utility or retail electric cooperative has spent on
10commitment to community programs under par. (b).
SB459-engrossed,36,1411 (d) Joint programs. Municipal utilities or retail electric cooperatives may
12establish joint commitment to community programs, except that each municipal
13utility or retail electric cooperative that participates in a joint program shall comply
14with the spending requirements under par. (b).
SB459-engrossed,36,1815 (e) Reports. 1. Annually, each municipal utility and retail electric cooperative
16that spends the fee that it charges under par. (a) for commitment to community
17programs under par. (b) shall provide for an independent audit of its programs and
18submit a report to the commission that describes all of the following:
SB459-engrossed,36,2219 a. An accounting of fees charged to customers or members under par. (a) in the
20year and expenditures on commitment to community programs under par. (b),
21including any amounts included in the municipal utility's or retail electric
22cooperative's calculations under par. (c).
SB459-engrossed,36,2423 b. A description of commitment to community programs established by the
24municipal utility or retail electric cooperative in the year.
SB459-engrossed,37,2
1c. The effectiveness of the commitment to community programs in reducing
2demand for electricity by customers or members.
SB459-engrossed,37,33 d. The results of audits under this subdivision.
SB459-engrossed,37,64 2. The commission shall require that municipal utilities and retail electric
5cooperatives file reports under subd. 1. electronically, in a format that allows for
6tabulation, comparison, and other analysis of the reports.
SB459-engrossed,37,87 3. The commission shall maintain reports filed under subd. 1. for at least 6
8years.
SB459-engrossed,37,11 9(8) Compliance. An energy utility that spends the full amount required under
10sub. (3) (b) 2. in any year is considered to have satisfied its requirements under this
11section for that year.
SB459-engrossed, s. 70 12Section 70. 196.378 (1) (a) of the statutes is renumbered 196.378 (1) (ar)
13amended to read:
SB459-engrossed,37,1914 196.378 (1) (ar) "Biomass" means a resource that derives energy from wood or
15plant material or residue, biological waste, crops grown for use as a resource or
16landfill gases. "Biomass" does not include garbage, as defined in s. 289.01 (9), or
17nonvegetation-based industrial, commercial or household waste, except that
18"biomass" includes refuse-derived fuel used for a renewable facility that was in
19service in this state before January 1, 1998.
SB459-engrossed, s. 71 20Section 71. 196.378 (1) (ag) of the statutes is created to read:
SB459-engrossed,37,2221 196.378 (1) (ag) "Baseline renewable percentage" means the average of an
22energy provider's renewable energy percentage for 2001, 2002, and 2003.
SB459-engrossed, s. 72 23Section 72. 196.378 (1) (bm) of the statutes is repealed.
SB459-engrossed, s. 73 24Section 73. 196.378 (1) (e) of the statutes is repealed.
SB459-engrossed, s. 74 25Section 74. 196.378 (1) (f) of the statutes is repealed.
SB459-engrossed, s. 75
1Section 75. 196.378 (1) (fg) of the statutes is created to read:
SB459-engrossed,38,32 196.378 (1) (fg) "Renewable energy" means electricity derived from a
3renewable resource.
SB459-engrossed, s. 76 4Section 76. 196.378 (1) (fm) of the statutes is created to read:
SB459-engrossed,38,85 196.378 (1) (fm) "Renewable energy percentage" means, with respect to an
6electric provider for a particular year, the percentage that results from dividing the
7sum of the following by the total amount of electricity that the electric provider sold
8to retail customers or members in that year:
SB459-engrossed,38,99 1. The electric provider's total renewable energy in that year.
SB459-engrossed,38,1110 2. The renewable resource credits created or purchased by the electric provider,
11if any, that the electric provider elects to use in that year.
SB459-engrossed, s. 77 12Section 77. 196.378 (1) (fr) of the statutes is created to read:
SB459-engrossed,38,1413 196.378 (1) (fr) "Renewable energy supplier" means a person from whom an
14electric provider purchases renewable energy at wholesale.
SB459-engrossed, s. 78 15Section 78. 196.378 (1) (g) of the statutes is amended to read:
SB459-engrossed,38,2216 196.378 (1) (g) "Renewable facility" means an installed and operational electric
17generating facility in which electricity is derived from a renewable resource.
18"Renewable facility" includes a facility the installation or operation of which is
19required under federal law, but does not include a facility the installation or
20operation of which is required under the laws of another state even if the installation
21or operation of the facility is also required under federal law
, located in or outside this
22state, that generates renewable energy
.
SB459-engrossed, s. 79 23Section 79. 196.378 (1) (i) of the statutes is amended to read:
SB459-engrossed,38,2524 196.378 (1) (i) "Renewable resource credit" means a credit calculated in
25accordance with rules promulgated under sub. (3) (a) 1. and 2.
SB459-engrossed, s. 80
1Section 80. 196.378 (1) (n) of the statutes is repealed.
SB459-engrossed, s. 81 2Section 81. 196.378 (1) (o) of the statutes is repealed and recreated to read:
SB459-engrossed,39,73 196.378 (1) (o) "Total renewable energy" means the total amount of renewable
4energy that the electric provider sold to its customers or members in a year. "Total
5renewable energy" does not include any energy that is used to comply with the
6renewable energy requirements of another state. "Total renewable energy" includes
7all of the following:
SB459-engrossed,39,118 1. Renewable energy supplied by a renewable facility owned or operated by an
9affiliated interest or wholesale supplier of an electric provider and allocated to the
10electric provider under an agreement between the electric provider and the affiliated
11interest or wholesale supplier.
SB459-engrossed,39,1612 2. Renewable energy purchased by an affiliated interest or wholesale supplier
13of an electric provider from a renewable facility that is not owned or operated by the
14affiliated interest or wholesale supplier, which renewable energy is allocated to the
15electric provider under an agreement between the electric provider and the affiliated
16interest or wholesale supplier.
SB459-engrossed, s. 82 17Section 82. 196.378 (1) (p) of the statutes is created to read:
SB459-engrossed,39,1818 196.378 (1) (p) "Wholesale supplier" has the meaning given in s. 16.957 (1) (w).
SB459-engrossed, s. 83 19Section 83. 196.378 (2) (a) of the statutes is repealed and recreated to read:
SB459-engrossed,40,220 196.378 (2) (a) 1. No later than June 1, 2016, the commission shall prepare a
21report stating whether, by December 31, 2015, the state has met a goal of 10 percent
22of all electric energy consumed in the state being renewable energy. If the goal has
23not been achieved, the report shall indicate why the goal was not achieved and how
24it may be achieved, and the commission shall prepare similar reports biennially
25thereafter until the goal is achieved. The commission shall submit reports under this

1subdivision to the governor and chief clerk of each house of the legislature for
2distribution to the legislature under s. 13.172 (2).
SB459-engrossed,40,33 2. Except as provided in pars. (e), (f), and (g):
SB459-engrossed,40,64 a. For the years 2006, 2007, 2008, and 2009, each electric provider may not
5decrease its renewable energy percentage below the electric provider's baseline
6renewable percentage.
SB459-engrossed,40,97 b. For the year 2010, each electric provider shall increase its renewable energy
8percentage so that it is at least 2 percentage points above the electric provider's
9baseline renewable percentage.
SB459-engrossed,40,1210 c. For the years 2011, 2012, 2013, and 2014, each electric provider may not
11decrease its renewable energy percentage below the electric provider's renewable
12energy percentage required under subd. 2. b.
SB459-engrossed,40,1513 d. For the year 2015, each electric provider shall increase its renewable energy
14percentage so that it is at least 6 percentage points above the electric provider's
15baseline renewable percentage.
SB459-engrossed,40,1816 e. For each year after 2015, each electric provider may not decrease its
17renewable energy percentage below the electric provider's renewable energy
18percentage required under subd. 2. d.
SB459-engrossed, s. 84 19Section 84. 196.378 (2) (b) 1. of the statutes is amended to read:
SB459-engrossed,40,2320 196.378 (2) (b) 1. Total retail electric sales The total amount of electricity that
21an electric provider sold to retail customers or members in a year
shall be calculated
22on the basis of an average of an the electric provider's retail electric sales in this state
23during the prior 3 years.
SB459-engrossed, s. 85 24Section 85. 196.378 (2) (b) 1m. of the statutes is created to read:
SB459-engrossed,41,4
1196.378 (2) (b) 1m. The amount of electricity derived from hydroelectric
2renewable resources that an electric provider may count toward satisfying the
3requirements of par. (a) 2. shall be all electricity provided by hydroelectric power that
4the electric provider purchased in the reporting year plus all of the following:
SB459-engrossed,41,95 a. The average of the amounts of hydroelectric power generated by facilities
6owned or operated by the electric provider for 2001, 2002, and 2003, adjusted to
7reflect the permanent removal from service of any of those facilities and adjusted to
8reflect any capacity increases from improvements made to those facilities on or after
9January 1, 2004.
SB459-engrossed,41,1210 b. The amount of hydroelectric power generated in the reporting year by
11facilities owned or operated by the electric provider that are initially placed in service
12on or after January 1, 2004.
SB459-engrossed, s. 86 13Section 86. 196.378 (2) (b) 3. of the statutes is repealed.
SB459-engrossed, s. 87m 14Section 87m. 196.378 (2) (b) 4. of the statutes is repealed and recreated to
15read:
SB459-engrossed,41,1916 196.378 (2) (b) 4. A wholesale supplier may sell credits that it creates and may
17aggregate and allocate the credits that it creates among its members or customers.
18A member or customer may sell credits or portions of a credit allocated to the member
19or customer by the wholesale supplier.
SB459-engrossed, s. 88 20Section 88. 196.378 (2) (b) 5. of the statutes is created to read:
SB459-engrossed,41,2521 196.378 (2) (b) 5. An electric provider that purchases renewable energy from
22a renewable energy supplier may use an allocated share of the renewable energy sold
23by the renewable energy supplier to comply with a requirement under par. (a) 2. or
24to create a credit under sub. (3) (a), provided that the cost of the renewable energy
25is included in the price the electric provider paid the renewable energy supplier.
SB459-engrossed, s. 89
1Section 89. 196.378 (2) (c) of the statutes is amended to read:
SB459-engrossed,42,162 196.378 (2) (c) No later than April 15 annually, or another annual date specified
3by the commission by rule,
an electric provider shall submit a report to the
4department commission that identifies the electric provider's renewable energy
5percentage for the previous year and
describes the electric provider's compliance
6with par. (a) 2. and the electric provider's implementation plans for future
7compliance
. Reports under this paragraph may include certifications from
8wholesale suppliers renewable energy suppliers regarding the sources and amounts
9of renewable energy supplied to an the electric provider. The department
10commission may specify the documentation that is required to be included with
11reports submitted under this paragraph. The commission may require that electric
12providers submit the reports in a proceeding, initiated by the commission under this
13section relating to the implementation of s. 1.12, or in a proceeding for preparing a
14strategic energy assessment under s. 196.491 (2). No later than 90 days after the
15commission's receipt of an electric provider's report, the commission shall inform the
16electric provider whether the electric provider is in compliance with par. (a) 2.
SB459-engrossed, s. 90 17Section 90. 196.378 (2) (e) of the statutes is repealed and recreated to read:
SB459-engrossed,42,2418 196.378 (2) (e) An electric provider, or a wholesale supplier for its members,
19may request that the commission grant a delay for complying with a deadline
20specified in par. (a) 2. The commission shall hold a hearing on the request and, if
21requested by the electric provider or wholesale supplier, treat the matter as a
22contested case. The commission shall grant a delay if the commission determines
23that the applicant has demonstrated good faith efforts to comply with the deadline
24and that any of the following applies:
SB459-engrossed,43,3
11. Notwithstanding reasonable efforts to protect against undesirable impacts
2on the reliability of an electric provider's system, compliance with the deadline will
3have an undesirable impact on the reliability of the applicant's system.
SB459-engrossed,43,94 2. Notwithstanding reasonable efforts to protect against unreasonable
5increases in rates of the applicant's ratepayers or members, compliance with the
6deadline will result in unreasonable increases in rates of the applicant's ratepayers
7or members, including increases that are due to the discontinuation of federal
8renewable energy tax credits or other federal policies intended to reduce the
9acquisition costs of renewable energy.
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