1. Procedures for energy utilities to collectively contract with program 4
administrators for administration of statewide programs under sub. (2) (a) 1. and to 5
receive contributions from municipal utilities and retail electric cooperatives under 6
sub. (7) (b) 2.
2. Procedures and criteria for commission review and approval of contracts for 8
administration of statewide programs under sub. (2) (a) 1., including criteria for the 9
selection of program administrators under sub. (2) (a) 1.
3. Procedures and criteria for commission review and approval of 11
utility-administered programs under sub. (2) (b) 1. and 2., customer programs under 12
sub. (2) (c), and requests under sub. (2) (b) 3.
4. Minimum requirements for energy efficiency and renewable resource 14
programs under sub. (2) (a) 1. and customer energy efficiency programs under sub. 15
16(4) Discrimination prohibited; competition.
(a) In implementing programs 17
under sub. (2) (a) 1., including the awarding of grants or contracts, a person who 18
contracts with the utilities under sub. (2) (a) 1., or a person who subcontracts with 19
such a person:
1. May not discriminate against an energy utility or its affiliate or a wholesale 21
supplier or its affiliate solely on the basis of its status as an energy utility or its 22
affiliate or wholesale supplier or its affiliate.
2. Shall provide services to utility customers on a nondiscriminatory basis and 24
subject to a customer's choice.
(b) An energy utility that provides financing under an energy efficiency 2
program under sub. (2) (b) 1. or 2. for installation, by a customer, of energy efficiency 3
or renewable resource processes, equipment, or appliances, or an affiliate of such a 4
utility, may not sell to or install for the customer those processes, equipment, 5
appliances, or related materials. The customer shall acquire the installation of the 6
processes, equipment, appliances, or related materials from an independent 7
contractor of the customer's choice.
8(5) Cost recovery.
(a) Rate-making orders.
The commission shall ensure in 9
rate-making orders that an energy utility recovers from its ratepayers the amounts 10
the energy utility spends for programs under sub. (2) (a) 1.
(b) Large energy customers.
1. Except as provided in sub. (2) (c) and par. (bm) 12
2., if the commission has determined that a customer of an energy utility is a large 13
energy customer under 2005 Wisconsin Act .... (this act), section 102 (8) (b), then, 14
each month, the energy utility shall collect from the customer, for recovery of 15
amounts under par. (a), the amount determined by the commission under 2005 16
Wisconsin Act .... (this act), section 102 (8) (c).
2. A customer of an energy utility that the commission has not determined is 18
a large energy customer under 2005 Wisconsin Act .... (this act), section 102 (8) (b), 19
may petition the commission for a determination that the customer is a large energy 20
customer. The commission shall determine that a petitioner is a large energy 21
customer if the petitioner satisfies the definition of large energy customer for any 22
month in the 12 months preceding the date of the petition. If the commission makes 23
such a determination, the commission shall also determine the amount that the 24
energy utility may collect from the customer each month for recovery of the amounts 25
under par. (a). The commission shall determine an amount that ensures that the
amount collected from the customer is similar to the amounts collected from other 2
customers that have a similar level of energy costs as the customer. Except as 3
provided in sub. (2) (c) and par. (bm) 2., each month, the energy utility shall collect 4
from the customer, for recovery of amounts under par. (a), the amount determined 5
by the commission under this subdivision.
(bm) Allocation proposal.
1. The commission shall commence a proceeding for 7
for creating a proposal for allocating within different classes of customers an 8
equitable distribution of the recovery of the amounts under par. (a) by all energy 9
utilities. The purpose of the allocation is to ensure that customers of an energy utility 10
within a particular class are treated equitably with respect to customers of other 11
energy utilities within the same class. No later than December 31, 2008, the 12
commission shall submit the proposal to the governor and chief clerk of each house 13
of the legislature for distribution to the appropriate standing committees of the 14
legislature under s. 13.172 (3).
2. If, by July 1, 2009, legislation based on the proposal under subd. 1. has not 16
been enacted, the commission shall, beginning on July 1, 2009, annually increase the 17
amount that an energy utility may recover from a large energy customer each month 18
under par. (b) only by a percentage that is the lesser of the following:
a. The percentage increase in the energy utility's operating revenues during the 20
b. The percentage increase in the consumer price index for all urban 22
consumers, U.S. city average, as determined by the U.S. department of labor, during 23
the preceding year.
The commission may prescribe the accounting treatment of 2
energy utility expenditures required under this section, including the use of any 3
(d) Equitable contributions.
Subject to pars. (b) and (bm) 2., the commission 5
shall ensure that the cost of energy efficiency and renewable resource programs is 6
equitably divided among customer classes so that similarly situated ratepayers 7
contribute equivalent amounts for the programs.
8(5m) Benefit and grant opportunities.
(a) The commission shall ensure that, 9
on an annual basis, each customer class of an energy utility has the opportunity to 10
receive grants and benefits under energy efficiency programs in an amount equal to 11
the amount that is recovered from the customer class under sub. (5) (a). Biennially, 12
the commission shall submit a report to the governor, and the chief clerk of each 13
house of the legislature for distribution to the legislature under s. 13.172 (2), that 14
summarizes the total amount recovered from each customer class and the total 15
amount of grants made to, and benefits received by, each customer class.
(b) The commission shall ensure that customers throughout the state have an 17
equivalent opportunity to receive the benefits of the programs under sub. (2) (a) 1. 18
and (b) 1. The commission shall ensure that statewide programs are designed to 19
ensure that retail customers in areas not served by programs under sub. (2) (b) 1. 20
receive equivalent opportunities as those in areas served by programs under sub. (2) 21
22(6) Annual statements.
Annually, the commission shall prepare a statement 23
that describes the programs under sub. (2) (a) 1., (b) 1. and 2., and (c), and ordered 24
programs, administered or funded by the energy utility and presents cost and benefit
information for those programs. An energy utility shall provide each of its customers 2
with a copy of the statement.
3(7) Municipal utilities and retail electric cooperatives.
(a) Requirement to
1. Each retail electric cooperative and municipal utility shall charge a 5
monthly fee to each customer or member in an amount that is sufficient for the retail 6
electric cooperative or municipal utility to collect an annual average of $8 per meter. 7
A retail electric cooperative or municipal utility may determine the amount that a 8
particular class of customers or members is required to pay under this subdivision 9
and may charge different fees to different classes of customers or members.
2. Notwithstanding subd. 1., in any month, the monthly fee under subd. 1. may 11
not exceed 1.5 percent of the total of every other charge for which the member or 12
customer is billed for that month or $375 per month, whichever is less.
(b) Commitment to community programs.
1. Except as provided in subd. 2., 14
each retail electric cooperative and municipal utility shall spend the fees that it 15
charges under par. (a) on commitment to community programs. The purpose of the 16
programs under this paragraph shall be to help achieve environmentally sound and 17
adequate energy supplies at reasonable cost.
2. No later than October 1, 2007, and no later than every 3rd year after that 19
date, each municipal utility or retail electric cooperative shall notify the commission 20
whether it has elected to contribute the fees that it charges under par. (a) to statewide 21
programs established under sub. (2) (a) 1. in each year of the 3-year period for which 22
it has made the election. If a municipal utility or retail electric cooperative elects to 23
contribute to the statewide programs established under sub. (2) (a) 1., the utility or 24
cooperative shall contribute the fees that it collects under par. (a) to the payment of 25
contracts under sub. (2) (a) 1. for administration of the statewide programs, as
specified in the rules under sub. (3) (f) 1., in each year of the 3-year period for which 2
the utility or cooperative has made the election.
(c) Wholesale supplier credit.
If a wholesale supplier has established an energy 4
efficiency or load management program, a municipal utility or retail electric 5
cooperative that is a customer or member of the wholesale supplier may include an 6
amount equal to the product of the municipal utility's or retail electric cooperative's 7
wholesale supply percentage and the amount that the wholesale supplier has spent 8
on energy efficiency or load management programs in a year in calculating the 9
amount that the municipal utility or retail electric cooperative has spent on 10
commitment to community programs under par. (b).
(d) Joint programs.
Municipal utilities or retail electric cooperatives may 12
establish joint commitment to community programs, except that each municipal 13
utility or retail electric cooperative that participates in a joint program shall comply 14
with the spending requirements under par. (b).
1. Annually, each municipal utility and retail electric cooperative 16
that spends the fee that it charges under par. (a) for commitment to community 17
programs under par. (b) shall provide for an independent audit of its programs and 18
submit a report to the commission that describes all of the following:
a. An accounting of fees charged to customers or members under par. (a) in the 20
year and expenditures on commitment to community programs under par. (b), 21
including any amounts included in the municipal utility's or retail electric 22
cooperative's calculations under par. (c).
b. A description of commitment to community programs established by the 24
municipal utility or retail electric cooperative in the year.
c. The effectiveness of the commitment to community programs in reducing 2
demand for electricity by customers or members.
d. The results of audits under this subdivision.
2. The commission shall require that municipal utilities and retail electric 5
cooperatives file reports under subd. 1. electronically, in a format that allows for 6
tabulation, comparison, and other analysis of the reports.
3. The commission shall maintain reports filed under subd. 1. for at least 6 8
An energy utility that spends the full amount required under 10
sub. (3) (b) 2. in any year is considered to have satisfied its requirements under this 11
section for that year.
SB459-engrossed, s. 70
196.378 (1) (a) of the statutes is renumbered 196.378 (1) (ar) 13
amended to read:
(ar) "Biomass" means a resource that derives energy from wood or 15
plant material or residue, biological waste, crops grown for use as a resource or 16
landfill gases. "Biomass" does not include garbage, as defined in s. 289.01 (9), or 17
nonvegetation-based industrial, commercial or household waste, except that 18
"biomass" includes refuse-derived fuel used for a renewable facility that was in 19
service in this state
before January 1, 1998.
(ag) "Baseline renewable percentage" means the average of an 22
energy provider's renewable energy percentage for 2001, 2002, and 2003.
(fg) "Renewable energy" means electricity derived from a 3
(fm) "Renewable energy percentage" means, with respect to an 6
electric provider for a particular year, the percentage that results from dividing the 7
sum of the following by the total amount of electricity that the electric provider sold 8
to retail customers or members in that year:
1. The electric provider's total renewable energy in that year.
2. The renewable resource credits created or purchased by the electric provider, 11
if any, that the electric provider elects to use in that year.
(fr) "Renewable energy supplier" means a person from whom an 14
electric provider purchases renewable energy at wholesale.
(g) "Renewable facility" means an installed and operational electric 17
generating 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
(i) "Renewable resource credit" means a credit calculated in 25
accordance with rules promulgated under sub. (3) (a) 1. and 2
(o) "Total renewable energy" means the total amount of renewable 4
energy that the electric provider sold to its customers or members in a year. "Total 5
renewable energy" does not include any energy that is used to comply with the 6
renewable energy requirements of another state. "Total renewable energy" includes 7
all of the following:
1. Renewable energy supplied by a renewable facility owned or operated by an 9
affiliated interest or wholesale supplier of an electric provider and allocated to the 10
electric provider under an agreement between the electric provider and the affiliated 11
interest or wholesale supplier.
2. Renewable energy purchased by an affiliated interest or wholesale supplier 13
of an electric provider from a renewable facility that is not owned or operated by the 14
affiliated interest or wholesale supplier, which renewable energy is allocated to the 15
electric provider under an agreement between the electric provider and the affiliated 16
interest or wholesale supplier.
(p) "Wholesale supplier" has the meaning given in s. 16.957 (1) (w).
(a) 1. No later than June 1, 2016, the commission shall prepare a 21
report stating whether, by December 31, 2015, the state has met a goal of 10 percent 22
of all electric energy consumed in the state being renewable energy. If the goal has 23
not been achieved, the report shall indicate why the goal was not achieved and how 24
it may be achieved, and the commission shall prepare similar reports biennially 25
thereafter until the goal is achieved. The commission shall submit reports under this
subdivision to the governor and chief clerk of each house of the legislature for 2
distribution to the legislature under s. 13.172 (2).
2. Except as provided in pars. (e), (f), and (g):
a. For the years 2006, 2007, 2008, and 2009, each electric provider may not 5
decrease its renewable energy percentage below the electric provider's baseline 6
b. For the year 2010, each electric provider shall increase its renewable energy 8
percentage so that it is at least 2 percentage points above the electric provider's 9
baseline renewable percentage.
c. For the years 2011, 2012, 2013, and 2014, each electric provider may not 11
decrease its renewable energy percentage below the electric provider's renewable 12
energy percentage required under subd. 2. b.
d. For the year 2015, each electric provider shall increase its renewable energy 14
percentage so that it is at least 6 percentage points above the electric provider's 15
baseline renewable percentage.
e. For each year after 2015, each electric provider may not decrease its 17
renewable energy percentage below the electric provider's renewable energy 18
percentage required under subd. 2. d.
(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 22
on the basis of an average of an the
electric provider's retail electric sales in this state 23
during the prior 3 years.
(b) 1m. The amount of electricity derived from hydroelectric 2
renewable resources that an electric provider may count toward satisfying the 3
requirements of par. (a) 2. shall be all electricity provided by hydroelectric power that 4
the electric provider purchased in the reporting year plus all of the following:
a. The average of the amounts of hydroelectric power generated by facilities 6
owned or operated by the electric provider for 2001, 2002, and 2003, adjusted to 7
reflect the permanent removal from service of any of those facilities and adjusted to 8
reflect any capacity increases from improvements made to those facilities on or after 9
January 1, 2004.
b. The amount of hydroelectric power generated in the reporting year by 11
facilities owned or operated by the electric provider that are initially placed in service 12
on or after January 1, 2004.
(b) 4. A wholesale supplier may sell credits that it creates and may 17
aggregate and allocate the credits that it creates among its members or customers. 18
A member or customer may sell credits or portions of a credit allocated to the member 19
or customer by the wholesale supplier.
(b) 5. An electric provider that purchases renewable energy from 22
a renewable energy supplier may use an allocated share of the renewable energy sold 23
by the renewable energy supplier to comply with a requirement under par. (a) 2. or 24
to create a credit under sub. (3) (a), provided that the cost of the renewable energy 25
is included in the price the electric provider paid the renewable energy supplier.
(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 6
with par. (a) 2. and the electric provider's implementation plans for future
. Reports under this paragraph may include certifications from 8wholesale suppliers renewable energy suppliers
regarding the sources and amounts 9
energy supplied to an
electric provider. The department 10commission
may specify the documentation that is required to be included with 11
reports 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.
(e) An electric provider, or a wholesale supplier for its members, 19
may request that the commission grant a delay for complying with a deadline 20
specified in par. (a) 2. The commission shall hold a hearing on the request and, if 21
requested by the electric provider or wholesale supplier, treat the matter as a 22
contested case. The commission shall grant a delay if the commission determines 23
that the applicant has demonstrated good faith efforts to comply with the deadline 24
and that any of the following applies:
1. Notwithstanding reasonable efforts to protect against undesirable impacts 2
on the reliability of an electric provider's system, compliance with the deadline will 3
have an undesirable impact on the reliability of the applicant's system.
2. Notwithstanding reasonable efforts to protect against unreasonable 5
increases in rates of the applicant's ratepayers or members, compliance with the 6
deadline will result in unreasonable increases in rates of the applicant's ratepayers 7
or members, including increases that are due to the discontinuation of federal 8
renewable energy tax credits or other federal policies intended to reduce the 9
acquisition costs of renewable energy.
3. Notwithstanding reasonable efforts to obtain required approvals, the 11
applicant cannot comply with the deadline because the applicant or a supplier has 12
experienced or will experience delays in receiving required siting or permitting 13
approvals for renewable energy projects.
4. Notwithstanding reasonable efforts to secure transmission service, the 15
applicant cannot comply with the deadline because the applicant faces transmission 16
constraints that interfere with the economic and reliable delivery of renewable 17
energy to the applicant's system.
(f) A wholesale electric cooperative for its members or a municipal 20
electric company for its members may delay compliance with a deadline specified in 21
par. (a) 2. for any reason specified in par. (e) 1. to 4. A wholesale electric cooperative 22
or a municipal electric company that delays compliance with a deadline specified in 23
par. (a) 2. shall inform the commission of the delay and the reason for the delay, and 24
shall submit information to the commission demonstrating that, notwithstanding
good faith efforts by the wholesale electric cooperative or municipal electric company 2
and its members, the members cannot meet the deadline for the stated reason.