Amendment ASA1-AB649

AB649-ASA1,48,11 196.374 (2) (b) (title) Utility-administered and supplemental utility programs.

AB649-ASA1, s. 102 Section 102. 196.374 (2) (b) 1. of the statutes is amended to read:

AB649-ASA1,48,20 196.374 (2) (b) 1. An energy utility may, with commission approval, administer or fund one or more energy efficiency programs for regulated fuels that is limited to, as determined by the commission, large commercial, industrial, institutional, or agricultural customers in its service territory. An energy utility shall pay for a program under this subdivision with by withholding a portion of the amount it is required to pay to a statewide programs contractor under sub. (3) (b) 2. (bw) 3. or 3g., as approved by the commission. The commission may not order an energy utility to administer or fund a program under this subdivision.

AB649-ASA1, s. 103 Section 103. 196.374 (2) (b) 2. of the statutes is amended to read:

AB649-ASA1,49,2 196.374 (2) (b) 2. An energy utility may, with commission approval, administer or fund an energy efficiency or renewable resource program for regulated fuels that is limited to customers in its service territory and that is in addition to the statewide programs required under par. (a) or utility-administered programs authorized under subd. 1. The commission may not order an energy utility to administer or fund a program under this subdivision.

AB649-ASA1, s. 104 Section 104. 196.374 (2) (b) 3. of the statutes is amended to read:

AB649-ASA1,49,11 196.374 (2) (b) 3. An energy utility that administers or funds a program under subd. 1. or 2. or an ordered program may request at any time to establish, modify, or discontinue a utility-administered or supplemental utility program, and the commission may approve, to modify, or discontinue, in whole or in part, the ordered program. An energy utility may request the establishment, modification, or discontinuation of a program under subd. 1. or 2. at any time and shall request the modification or discontinuation of an ordered program as part of a proceeding under sub. (3) (b) 1.

AB649-ASA1, s. 105 Section 105. 196.374 (2) (c) of the statutes is amended to read:

AB649-ASA1,49,24 196.374 (2) (c) Large energy customer programs. A customer of an energy utility may, with commission approval, administer and fund its own energy efficiency programs or renewable resource programs if the customer satisfies the definition of a large energy customer for any month in the 12 months preceding the date of the customer's request for approval. A customer may request commission approval at any time. A customer that funds a program under this paragraph may deduct the amount of the funding from the amount the energy utility may collect from the customer under sub. (5) (b). If the customer deducts the amount of the funding from the amount the energy utility may collect from the customer under sub. (5) (b), the energy utility shall credit the amount of the funding against the amount the energy utility is required to spend pay to a statewide programs contractor under sub. (3) (b) 2. (bw) 3. or 3g.

AB649-ASA1, s. 106 Section 106. 196.374 (3) (a) and (b) 1. of the statutes are consolidated, renumbered 196.374 (3) (a) and amended to read:

AB649-ASA1,50,22 196.374 (3) (a) In general. The commission shall have oversight of statewide, utility-administered, supplemental utility, and large energy customer programs under sub. (2). The commission shall maximize coordination of program delivery, including coordination between such programs under subs. (2) (a) 1., (b) 1. and 2., and (c) and (7), ordered programs, low-income weatherization programs under s. ss. 16.26, 16.27, and 16.957, renewable resource programs under s. 196.378, and other energy efficiency or renewable resource programs. The commission shall cooperate with the department of natural resources to ensure coordination of energy efficiency and renewable resource programs with air quality programs and to maximize and document the air quality improvement benefits that can be realized from energy efficiency and renewable resource programs. (b) 1. At least every 4 years, after notice and opportunity to be heard, the commission shall, by order, evaluate the energy efficiency and renewable resource programs under sub. (2) (a) 1., (b) 1. and 2., and (c) and ordered programs and set or revise goals, priorities, and measurable targets for the programs. The In carrying out its duties under this paragraph, the commission shall give priority to cost-effective programs that moderate the growth in electric and natural gas target fuel demand and usage, facilitate markets and assist market providers to achieve higher levels of energy efficiency, promote energy reliability and adequacy, avoid adverse environmental impacts from the use of energy, and promote rural economic development.

AB649-ASA1, s. 107 Section 107. 196.374 (3) (b) (title), 2. (intro.) and a. and 4. of the statutes are repealed.

AB649-ASA1, s. 108 Section 108. 196.374 (3) (b) 2. b. of the statutes is renumbered 196.374 (3) (bg) 1m. a. and amended to read:

AB649-ASA1,51,5 196.374 (3) (bg) 1m. a. The potential short-term and long-term impacts on electric and natural gas rates and on costs of unregulated fuels and alternative means to mitigate such impacts.

AB649-ASA1, s. 109 Section 109. 196.374 (3) (b) 2. c., d., e., f., g. and h. of the statutes are renumbered 196.374 (3) (bg) 1m. b., c., d., e., f. and g.

AB649-ASA1, s. 110 Section 110. 196.374 (3) (b) 3. of the statutes is renumbered 196.374 (3) (bw) 3g. and amended to read:

AB649-ASA1,52,3 196.374 (3) (bw) 3g. The commission shall submit to the joint committee on finance any proposal to require each an energy utility to spend a larger collect from its customers and pay to a statewide programs contractor in a year under subd. 3. a percentage of its annual operating revenues than the percentage specified in subd. 2. (intro.) to fund the programs specified in subd. 2. (intro.) that is greater than 1.2 percent. If the cochairpersons of the committee do not notify the commission within 10 working days after the commission submits such a proposal that the committee has scheduled a meeting to review the proposal, the commission may require each the energy utility to spend the percentage specified in comply with the proposal. If, within 10 working days after the commission submits a proposal, the cochairpersons of the committee notify the commission that the committee has scheduled a meeting to review the proposal, but, within 90 days of providing the notice, the committee does not object to the proposal, the commission may require each the energy utility to spend the percentage specified in comply with the proposal. If, within 90 days after providing the notice, the committee objects to the proposal, the commission may not require each the energy utility to spend the percentage specified in the proposal collect from its customers and pay to a statewide programs contractor 1.2 percent of its annual operating revenues. The commission may submit a proposal, or submit revisions to a proposal that the commission has previously submitted, at any time.

AB649-ASA1, s. 111 Section 111. 196.374 (3) (bc), (bg) (title), 1., 1m. (intro) and 2., (bn), (br) and (bw) (title), 1., 2., 3., 3r. and 4. of the statutes are created to read:

AB649-ASA1,52,14 196.374 (3) (bc) Quadrennial proceedings; generally. Every 4 years the commission shall, after notice and opportunity to be heard, conduct a proceeding for making assessments under par. (bg) and shall hold contested case hearings for establishing goals under par. (bn), establishing funding requirements under par. (br), and allocating the funding requirements under par. (bw). The commission shall carry out its duties under this paragraph in a manner that implements state policy under s. 1.12 (4), establishes all achievable and cost-effective energy savings, and is designed to enable the state to meet or exceed the goals specified in s. 299.03 (2) and (3m) (a) and (b).

AB649-ASA1,52,18 (bg) (title) Quadrennial potential studies. 1. The commission shall assess the reduction in the use of and demand for each target fuel that can be achieved in each year of the quadrennium following the proceeding under par. (bc) through all of the following:

AB649-ASA1,52,20 a. Cost-effective energy efficiency and renewable resource programs administered by energy providers or other persons.

AB649-ASA1,52,24 b. Programs and policy mechanisms under the commission's jurisdiction, excluding the programs described in subd. 1. a., and including demand response and load management programs and the renewable portfolio standard, as defined in s. 196.378 (1r) (gm).

AB649-ASA1,52,25 c. Low-income weatherization programs under ss. 16.26, 16.27, and 16.957.

AB649-ASA1,53,3 d. Other programs and policy mechanisms, including appliance and equipment efficiency standards, mandatory and voluntary energy conservation standards for buildings, and voluntary certification programs.

AB649-ASA1,53,5 1m. (intro.) In making assessments under subd. 1., the commission shall consider all of the following:

AB649-ASA1,53,7 2. Reductions in use of and demand for a target fuel in assessments under subd. 1. shall be expressed as percentages of total sales for the target fuel.

AB649-ASA1,53,13 (bn) Quadrennial goals. For each year of the quadrennium following the proceeding under par. (bc), the commission shall establish a goal for the reduction in demand for and use of each target fuel that can be achieved under the statewide programs, and a goal for the reduction in demand for and use of each regulated fuel that can be achieved by or on behalf of each municipal utility and retail electric cooperative, as follows:

AB649-ASA1,53,14 1. For each regulated fuel:

AB649-ASA1,53,15 a. Estimate the total sales of the regulated fuel that will occur in the year.

AB649-ASA1,53,18 b. Estimate the proportion of the amount estimated under subd. 1. a. that will be attributable to sales by all energy utilities in the year and multiply the proportion estimated under this subd. 1. b. by the amount estimated under subd. 1. a.

AB649-ASA1,53,22 c. Estimate the proportion of the amount estimated under subd. 1. a. that will be attributable to sales by each municipal utility or retail electric cooperative in the year and multiply the proportion estimated under this subd. 1. c. by the amount estimated under subd. 1. a.

AB649-ASA1,53,24 d. Determine the difference between the percentages determined under par. (bg) 1. a. and c. for the regulated fuel for the year.

AB649-ASA1,54,4 e. Multiply the product determined under subd. 1. b. by the difference determined under subd. 1. d. The resulting product shall be the goal under the statewide programs for the regulated fuel for the year, unless modified by the commission under sub. (8) (b) 2.

AB649-ASA1,54,17 f. Multiply the product determined under subd. 1. c. for a municipal utility or retail electric cooperative by the difference determined under subd. 1. d. The resulting product shall be the goal for the regulated fuel for the year for the municipal utility or retail electric cooperative, unless modified by the commission under sub. (8) (b) 2.; and except that the commission may revise the goal if the commission determines that the goal is unreasonable considering the composition of the membership or customer base of the municipal utility or retail electric cooperative; and except that, if the joint committee on finance objects under par. (bw) 3g. to a proposal regarding one or more energy utilities, the commission shall revise goals for municipal utilities and retail electric cooperatives in a manner that is consistent with the energy utility payments to the statewide programs contractor that result from the objection, and the commission shall notify municipal utilities and retail electric cooperatives of the revised goals.

AB649-ASA1,54,18 2. For each unregulated fuel:

AB649-ASA1,54,19 a. Estimate the total sales of the unregulated fuel that will occur in the year.

AB649-ASA1,54,21 b. Determine the difference between the percentages determined under par. (bg) 1. a. and c. for the unregulated fuel for the year.

AB649-ASA1,54,25 c. Multiply the estimate under subd. 2. a. by the difference determined under subd. 2. b. The resulting product shall be the goal under the statewide programs for the unregulated fuel for the year, unless modified by the commission under sub. (8) (b) 2.

AB649-ASA1,55,4 (br) Quadrennial funding requirements. 1. `Statewide programs.' The commission shall determine the amount of funds necessary for statewide programs for each target fuel for each year of the quadrennium following the proceeding under par. (bc) as follows:

AB649-ASA1,55,6 a. For each target fuel, determine the amount of funds necessary to achieve the goal determined under par. (bn) 1. e. or 2. c. for the year.

AB649-ASA1,55,9 b. Subtract from the amount determined under subd. 1. a. the total amount that the commission allows all energy utilities to pay for utility-administered programs for the target fuel in the year.

AB649-ASA1,55,13 c. Subtract from the amount determined under subd. 1. b. the total amount of funding the commission allows for all large energy customer programs for the target fuel in the year. The result determined under this subd. 1. c. shall be the amount of funding necessary for statewide programs for the target fuel in the year.

AB649-ASA1,55,20 2. `Municipal utilities and retail electric cooperatives.' Except as provided in sub. (7) (bg), each municipal utility and retail electric cooperative shall determine the amount of funds necessary to achieve the goal determined under par. (bn) 1. f. for each regulated fuel for each year of the quadrennium following the proceeding under par. (bc). The minimum amount that a municipal utility or retail electric cooperative may determine for a year under this subdivision shall correspond to a monthly fee imposed on each customer or member that collects an annual average of $8 per meter.

AB649-ASA1,55,24 (bw) (title) Funding allocation. 1. A prime supplier shall report to the commission, in the form specified by the commission, the amount of unregulated fuel that the prime supplier imports into this state each year for ultimate use by end users in this state.

AB649-ASA1,56,4 2. In the proceeding under par. (bc), for each target fuel, the commission shall determine the percentage of total sales of the target fuel by all energy utilities and prime suppliers in the quadrennium prior to the proceeding that is attributable to each energy utility and prime supplier.

AB649-ASA1,56,12 3. For each regulated fuel and for each year of the quadrennium following the proceeding under par. (bc), the commission shall determine the amount equal to the percentage determined for an energy utility under subd. 2. multiplied by the amount determined under par. (br) 1. c. for the regulated fuel for the year. Subject to subd. 3g., for each year, the commission shall require the energy utility to collect from its customers and pay to a statewide programs contractor the amount so determined or 1.2 percent of the energy utility's annual operating revenues for the year, whichever is greater.

AB649-ASA1,56,20 3r. For the purpose of funding grants and loans under sub. (2) (a) 2. e., the commission shall require each energy utility each year to collect from its customers and pay to a statewide programs contractor 0.2 percent of the energy utility's annual operating revenues for the year. The amounts that an energy utility is required to pay under this subdivision are in addition to the amounts the energy utility is required to pay under subd. 3. or 3g. This subdivision does not apply after the first day of the 48th month beginning after the effective date of this subdivision .... [LRB inserts date].

AB649-ASA1,56,25 4. For each unregulated fuel, the commission shall order each prime supplier to pay to a statewide programs contractor in each year of the quadrennium following the proceeding under par. (bc) an amount equal to the percentage determined for the prime supplier under subd. 2. multiplied by the amount determined under par. (br) 1. c. for the unregulated fuel for the year.

AB649-ASA1, s. 112 Section 112. 196.374 (3) (c) (title) of the statutes is amended to read:

AB649-ASA1,57,2 196.374 (3) (c) (title) Reviews Other reviews and approvals.

AB649-ASA1, s. 113 Section 113. 196.374 (3) (c) 1. of the statutes is amended to read:

AB649-ASA1,57,8 196.374 (3) (c) 1. Review and approve contracts under sub. (2) (a) 1. between the energy utilities and program administrators If the energy utilities contract with more than one person under sub. (2) (a) 1., the commission shall determine how to allocate among those persons the requirements under this section involving statewide programs contractors.

AB649-ASA1, s. 114 Section 114. 196.374 (3) (c) 2. (intro.), a. and b. of the statutes are consolidated, renumbered 196.374 (3) (c) 2. (intro.) and amended to read:

AB649-ASA1,57,20 196.374 (3) (c) 2. (intro.) Review requests under sub. (2) (b) for utility-administered, supplemental utility, and large energy customer programs. The commission may condition its approval of a request under sub. (2) (b) as necessary to protect the public interest. The commission shall approve a request under sub. (2) (b) 1. or 2. if the commission determines that a proposed energy efficiency or renewable resource program is in the public interest and satisfies all of the following: a. The program, has specific savings targets and performance measurable performance-based goals approved by the commission. b. The program, is subject to independent evaluation by the commission. , and, for a utility-administered or supplemental utility program, satisfies all of the following:

AB649-ASA1, s. 115 Section 115. 196.374 (3) (c) 2. bm., c., d. and e. of the statutes are created to read:

AB649-ASA1,57,25 196.374 (3) (c) 2. bm. Implementation of the program will complement the statewide programs and enhance the ability of the statewide programs to meet or exceed their goals.

AB649-ASA1,58,2 c. Implementation of the program will enhance the ability of the state to meet its greenhouse gas emission reduction goals under s. 299.03 (2).

AB649-ASA1,58,4 d. Considering alternatives to the program, the costs of the program are reasonable.

AB649-ASA1,58,5 e. The benefits of the program exceed the costs of the program.

AB649-ASA1, s. 116 Section 116. 196.374 (3) (d) of the statutes is amended to read:

AB649-ASA1,58,17 196.374 (3) (d) Audits. Annually, the commission shall contract with one or more independent auditors to prepare a financial and performance audit of the statewide, utility-administered, supplemental utility, and large energy customer programs specified in par. (b) 1. The purpose of the performance audit shall be to evaluate the programs and measure the performance of the programs against the goals and targets set approved by the commission under par. (b) 1. The person or persons with whom the energy utilities contract for program administration under sub. (2) (a) 1. shall pay the costs of the audits from the amounts paid under the contracts under sub. (2) (a) 1 (c) 2. or established under par. (bn) 1. e. or 2. c. The audit shall also determine the amount of reduction in the demand for and use of each target fuel that has resulted in the year under the programs.

AB649-ASA1, s. 117 Section 117. 196.374 (3) (dm) of the statutes is created to read:

AB649-ASA1,58,23 196.374 (3) (dm) Consultations. If an audit under par. (d) indicates that a program has failed to achieve one or more goals for the year of the audit, the commission shall consult with the statewide programs contractor or person administering the program regarding ways to modify the program to ensure that, as determined under sub. (8) (a), it will achieve its goals.

AB649-ASA1, s. 118 Section 118. 196.374 (3) (e) of the statutes is renumbered 196.374 (3) (e) 1m., and 196.374 (3) (e) 1m. a. and b., as renumbered, are amended to read:

AB649-ASA1,59,4 196.374 (3) (e) 1m. a. The expenses of the commission, energy utilities, and program administrators contracted under sub. (2) (a) 1. statewide programs contractors in administering or participating in the statewide programs under sub. (2) (a) 1.

AB649-ASA1,59,8 b. The effectiveness of the statewide, utility-administered, supplemental utility, large energy customer, and commitment to community programs specified in par. (b) 1. and sub. (7) in reducing demand for electricity target fuels, and increasing the use of renewable resources owned by customers or members.

AB649-ASA1, s. 119 Section 119. 196.374 (3) (e) 2m. of the statutes is created to read:

AB649-ASA1,59,21 196.374 (3) (e) 2m. No later than January 1, 2014, the commission shall submit a report to the legislature in the manner described under s. 13.172 (3) on the status, development, and use of small-scale renewable technologies and the costs, benefits, and alternatives for providing additional incentives for the deployment of such technologies on a distributed generation basis. The report shall also recommend goals and mechanisms for encouraging the deployment of such technologies on such a basis, examine any obstacles to achieving the goals, and examine the relationship between the goals and the voluntary tariff offerings of energy utilities, the statewide energy programs, and any relevant federal programs. In preparing the report, the commission shall consult with the office of energy independence, the department of commerce, and the department of agriculture, trade and consumer protection.

AB649-ASA1, s. 120 Section 120. 196.374 (3) (f) 1. of the statutes is amended to read:

AB649-ASA1,60,2 196.374 (3) (f) 1. Procedures for energy utilities to collectively contract with program administrators for administration of statewide programs under sub. (2) (a) 1. and to receive contributions from municipal utilities and retail electric cooperatives under sub. (7) (b) 2. statewide programs contractors.

AB649-ASA1, s. 121 Section 121. 196.374 (3) (f) 2. of the statutes is amended to read:

AB649-ASA1,60,7 196.374 (3) (f) 2. Procedures and criteria for commission review and approval of contracts for administration of statewide programs under sub. (2) (a) 1., including criteria for the selection of program administrators under sub. (2) (a) 1. statewide programs contractors.

AB649-ASA1, s. 122 Section 122. 196.374 (3) (f) 3. of the statutes is amended to read:

AB649-ASA1,60,12 196.374 (3) (f) 3. Procedures and criteria for commission review and approval of utility-administered, supplemental utility, and large energy customer programs under sub. (2) (b) 1. and 2., customer programs under sub. (2) (c), and requests under sub. (2) (b) 3.

AB649-ASA1, s. 123 Section 123. 196.374 (3) (f) 4. of the statutes is amended to read:

AB649-ASA1,60,17 196.374 (3) (f) 4. Minimum requirements for energy efficiency and renewable resource the statewide, utility-administered, supplemental utility, and large energy customer programs under sub. (2) (a) 1. and customer energy efficiency programs under sub. (2) (c).

AB649-ASA1, s. 124 Section 124. 196.374 (4) (a) (intro.) of the statutes is amended to read:

AB649-ASA1,60,23 196.374 (4) (a) (intro.) In implementing the statewide programs under sub. (2) (a) 1. or administering a commitment to community program under a contract under sub. (7) (am) 2., including the awarding of grants or contracts, a person who contracts with the utilities under sub. (2) (a) 1., a statewide programs contractor or a person who subcontracts with such a person a statewide programs contractor:

AB649-ASA1, s. 125 Section 125. 196.374 (4) (a) 1. of the statutes is amended to read:

AB649-ASA1,61,3 196.374 (4) (a) 1. May not discriminate against an energy utility provider or its affiliate or a wholesale supplier or its affiliate solely on the basis of its status as an energy utility provider or its affiliate or wholesale supplier or its affiliate.

AB649-ASA1, s. 126 Section 126. 196.374 (4) (a) 2. of the statutes is amended to read:

AB649-ASA1,61,6 196.374 (4) (a) 2. Shall provide services to utility customers target fuel users on a nondiscriminatory basis and subject to a customer's user's choice.

AB649-ASA1, s. 127 Section 127. 196.374 (4) (b) of the statutes is amended to read:

AB649-ASA1,61,15 196.374 (4) (b) An energy utility that provides financing under an energy efficiency program under sub. (2) (b) 1. or 2. a utility-administered or supplemental utility program for installation, by a customer, of energy efficiency or renewable resource processes, equipment, or appliances, or an affiliate of such a utility, may not sell to or install for the customer those processes, equipment, appliances, or related materials. The customer shall acquire the installation of the processes, equipment, appliances, or related materials from an independent contractor of the customer's choice.

AB649-ASA1, s. 128 Section 128. 196.374 (5) (a) of the statutes is amended to read:

AB649-ASA1,61,21 196.374 (5) (a) Rate-making orders. The commission shall ensure in rate-making orders that an energy utility recovers from its ratepayers the amounts the energy utility spends for pays for statewide programs and the costs the energy utility incurs for utility-administered and supplemental utility programs under sub. (2) (a) 1.

AB649-ASA1, s. 129 Section 129. 196.374 (5) (b) 1. and (bm) 3. of the statutes are consolidated, renumbered 196.374 (5) (b) 1. and amended to read:

AB649-ASA1,62,8 196.374 (5) (b) 1. Except as provided in sub. (2) (c) and par. (bm) 2. subds. 3. and 4., if the commission has determined that a customer of an energy utility is a large energy customer under 2005 Wisconsin Act 141, section 102 (8) (b), then, each month, the energy utility shall collect from the customer, for recovery of amounts under par. (a), the amount determined by the commission under 2005 Wisconsin Act 141, section 102 (8) (c). (bm) 3. Until the proposal under subd. 1. takes effect, the The commission may not include the revenues received from a large energy customer in the calculation of operating revenues for purposes of sub. (3) (b) 2. this subdivision for an energy utility that in 2005 did not collect revenues from its customers under s. 196.374 (3), 2003 stats.

AB649-ASA1, s. 130 Section 130. 196.374 (5) (b) 2. of the statutes is amended to read: