AB649: Bill Text

AB649, s. 127 Section 127. 196.374 (5m) (am) of the statutes is created to read:

AB649,90,13 196.374 (5m) (am) The commission may allow a customer class of an energy utility the opportunity to receive grants and benefits under the statewide and utility-administered programs in an amount that is not equal to the amount recovered from the customer class under sub. (5) (a), but only if the commission finds that the allowance is in the public interest and promotes the cost-effective achievement of a goal established under sub. (3) (bn) 1. e. or 2. c.

AB649, s. 128 Section 128. 196.374 (5m) (b) of the statutes is amended to read:

AB649,90,21 196.374 (5m) (b) The commission shall ensure that customers target fuel users throughout the state have an equivalent opportunity to receive the benefits of the statewide and utility-administered programs under sub. (2) (a) 1. and (b) 1. The commission shall ensure that the statewide programs are designed to ensure that retail customers target fuel users in areas not served by utility-administered programs under sub. (2) (b) 1. receive equivalent opportunities as those in areas served by utility-administered programs under sub. (2) (b) 1.

AB649, s. 129 Section 129. 196.374 (6) of the statutes is amended to read:

AB649,91,3 196.374 (6) Annual statements. Annually, the commission shall prepare a statement that describes the statewide, utility-administered, supplemental utility, and large energy customer programs under sub. (2) (a) 1., (b) 1. and 2., and (c), and ordered 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 with a copy of the statement.

AB649, s. 130 Section 130. 196.374 (7) (a) of the statutes is repealed.

AB649, s. 131 Section 131. 196.374 (7) (am) of the statutes is created to read:

AB649,91,10 196.374 (7) (am) Quadrennial funding of goals. Except as provided in par. (bg), in each year of the quadrennium following the proceeding under sub. (3) (bc), each municipal utility and retail electric cooperative shall spend the amount determined by the municipal utility or retail electric cooperative under sub. (3) (br) 2. for that year on the following:

AB649,91,13 1. Commitment to community programs administered individually by the municipal utility or retail electric cooperative or jointly by the municipal utility or retail cooperative and other municipal utilities or retail electric cooperatives.

AB649,91,16 2. Contracts with a statewide programs contractor to administer commitment to community programs in the service territory of the municipal utility or retail electric cooperative.

AB649,91,19 3. Contracts with a wholesale supplier to administer commitment to community programs in the service territory of the municipal utility or retail electric cooperative.

AB649,91,21 4. Any combination of commitment to community programs or contracts under subds. 1. to 3.

AB649, s. 132 Section 132. 196.374 (7) (b) (title) of the statutes is renumbered 196.374 (7) (br) (title).

AB649, s. 133 Section 133. 196.374 (7) (b) 1. of the statutes is renumbered 196.374 (7) (br) and amended to read:

AB649,92,5 196.374 (7) (br) Except as provided in subd. 2., each retail electric cooperative and municipal utility shall spend the fees that it charges under par. (a) on commitment to community programs. The purpose of the commitment to community programs under this paragraph shall be to help achieve environmentally sound and adequate energy supplies at reasonable cost.

AB649, s. 134 Section 134. 196.374 (7) (b) 2. of the statutes is repealed.

AB649, s. 135 Section 135. 196.374 (7) (bg) of the statutes is created to read:

AB649,92,13 196.374 (7) (bg) Wholesale supplier assignments. A municipal utility or retail electric cooperative may assign to a wholesale supplier the duty to achieve a goal determined for the municipal utility or retail electric cooperative under sub. (3) (bn) 1. f. for a regulated fuel. If a wholesale supplier accepts an assignment, the wholesale supplier shall notify the commission. A wholesale supplier that accepts an assignment shall do all of the following:

AB649,92,14 1. Determine the amount of funds necessary to achieve the assigned goal.

AB649,92,17 2. Spend the amount determined under subd. 1. in administering commitment to community programs on behalf of the municipal utility or retail electric cooperative.

AB649,92,19 3. Prepare and provide statements on behalf of the municipal utility or retail electric cooperative under par. (dm).

AB649,92,21 4. Provide for audits and submit reports on behalf of the municipal utility or retail electric cooperative under par. (e).

AB649,92,25 5. If the wholesale supplier accepts an assignment from more than one municipal utility or retail electric cooperative, carry out the duties specified in subds. 1. to 4. on an aggregate basis for all the municipal utilities and retail electric cooperatives for which the wholesale supplier has accepted an assignment.

AB649, s. 136 Section 136. 196.374 (7) (c) of the statutes is repealed.

AB649, s. 137 Section 137. 196.374 (7) (cm) of the statutes is created to read:

AB649,93,5 196.374 (7) (cm) Cost recovery. The commission shall ensure in rate-making orders that a municipal utility recovers from its ratepayers the amounts the municipal utility spends to comply with this section.

AB649, s. 138 Section 138. 196.374 (7) (d) of the statutes is repealed.

AB649, s. 139 Section 139. 196.374 (7) (dm) of the statutes is created to read:

AB649,93,11 196.374 (7) (dm) Annual statements. Annually, a municipal utility or retail electric cooperative shall prepare a statement that describes the municipal utility's or retail electric cooperative's commitment to community programs and provide customers or members with a copy of the statement.

AB649, s. 140 Section 140. 196.374 (7) (e) (title) of the statutes is repealed and recreated to read:

AB649,93,14 196.374 (7) (e) (title) Audits and reports.

AB649, s. 141 Section 141. 196.374 (7) (e) 1. (intro.) of the statutes is amended to read:

AB649,93,21 196.374 (7) (e) 1. (intro.) Annually, each municipal utility and retail electric cooperative that spends the fee that it charges under par. (a) for commitment to community programs under par. (b) shall provide for an independent financial and program audit of its the commitment to community programs that it administers or for which it contracts under par. (am) and submit a report to the commission that describes all of the following:

AB649, s. 142 Section 142. 196.374 (7) (e) 1. a. of the statutes is amended to read:

AB649,94,3 196.374 (7) (e) 1. a. An accounting of any fees charged to customers or members under par. (a) in the year in order to comply with the spending required under par. (am) and an accounting of the expenditures in the year on commitment to community programs under par. (b), including any amounts included in the municipal utility's or retail electric cooperative's calculations under par. (c) that the municipal utility or retail electric cooperative administers or for which it contracts under par. (am).

AB649, s. 143 Section 143. 196.374 (7) (e) 1. b. of the statutes is amended to read:

AB649,94,7 196.374 (7) (e) 1. b. A description of the commitment to community programs established by the municipal utility or retail electric cooperative in the year described in subd. 1. a.

AB649, s. 144 Section 144. 196.374 (7) (e) 1. c. of the statutes is amended to read:

AB649,94,11 196.374 (7) (e) 1. c. The effectiveness of the commitment to community programs described in subd. 1. a. in reducing demand for electricity by customers or members regulated fuels.

AB649, s. 145 Section 145. 196.374 (7) (e) 1. e. of the statutes is created to read:

AB649,94,15 196.374 (7) (e) 1. e. An assessment, based on the program audit, of whether the commitment to community programs described in subd. 1. a. have met the goal for each regulated fuel for the year determined under sub. (3) (bn) 1. f.

AB649, s. 146 Section 146. 196.374 (8) of the statutes is renumbered 196.374 (8) (d) and amended to read:

AB649,94,24 196.374 (8) (d) Exceptions. An energy utility that spends pays to a statewide programs contractor the full amount required under sub. (3) (b) 2. (bw) 3. in any year is considered to have satisfied its requirements under this section for that year. A municipal utility or retail electric cooperative that contracts with a statewide programs contractor under sub. (7) (am) 2. to achieve each of the utility's or cooperative's goals determined under sub. (3) (bn) 1 f. for a year is considered to have satisfied its requirements under this section for that year.

AB649, s. 147 Section 147. 196.374 (8) (a), (b) and (c) of the statutes are created to read:

AB649,95,9 196.374 (8) (a) Determinations. 1. a. For each quadrennium following the proceeding under sub. (3) (bc), the commission shall determine the annual average reduction in demand for and use of each target fuel that is achieved under the statewide programs and achieved by or on behalf of each municipal utility and retail electric cooperative through commitment to community programs. Except as provided in subds. 1. b. and 1. c., if the annual average reduction for a target fuel equals or exceeds the average of the goals determined under sub. (3) (bn) 1. e., 1. f., or 2. c. for the quadrennium, the commission shall conclude that the goal is achieved for the quadrennium.

AB649,95,15 b. If a municipal utility or retail electric cooperative enters into a contract under sub. (7) (am) 3. with a wholesale supplier and at least one other municipal utility or retail electric cooperative enters into a similar contract with the wholesale supplier, the commission shall determine whether to conclude that a goal is achieved for a regulated fuel for a year under subd. 1. a. based on the aggregate annual average reduction that results for that regulated fuel for that year under all of the contracts.

AB649,95,21 c. If a wholesale supplier accepts assignment of a goal under sub. (7) (bg) for a regulated fuel for a year from more than one municipal utility or retail electric cooperative, the commission shall determine whether to conclude that the goal is achieved on an aggregate basis for all the municipal utilities and retail electric cooperatives for which the wholesale supplier has accepted the assignment, rather than on an individual basis for each municipal utility or retail electric cooperative.

AB649,96,2 2. For each utility-administered, supplemental utility, and large energy customer program, the commission shall determine whether the program achieved the goals approved for the program under sub. (3) (c) 2. on average over the time period in which the program is in effect or another time period specified by the commission.

AB649,96,6 (b) Reviews. 1. If the commission determines under par. (a) that a goal is not achieved, the commission shall investigate, as applicable, the statewide programs or the utility-administered, large energy customer, or commitment to community programs at issue, and determine the reasons for failure to achieve the goal.

AB649,96,13 2. If the commission determines under subd. 1. that a statewide programs contractor or person administering the utility-administered, large energy customer, or commitment to community program made a good faith effort to meet the goal and that the failure is due to factors outside the statewide program contractor's or person's control, the commission shall take those factors into account in modifying goals for and, where applicable, approving future programs administered by the statewide programs contractor or person.

AB649,96,23 3. If the commission determines under subd. 1. that a statewide programs contractor or person administering the utility-administered, large energy customer, or commitment to community program did not make a good faith effort to achieve the goal or that the failure to achieve the goal was due to factors within the statewide program contractor's or person's control, the commission shall implement remedies according to the rules promulgated under par. (c). The commission may determine that a statewide programs contractor or person administering the utility-administered, large energy customer, or commitment to community program did not make a good faith effort to meet a goal only if the commission finds any of the following:

AB649,96,25 a. The statewide programs contractor or person has repeatedly or grossly failed to meet a goal.

AB649,97,4 b. For a commitment to community program, the municipal utility, retail electric cooperative, or wholesale supplier administering or contracting for the program did not determine an amount of funds under sub. (3) (br) 2. or (7) (bg) 1. that could reasonably be considered necessary to achieve the goal.

AB649,97,5 c. Any other condition specified by the commission by rule.

AB649,97,12 (c) Remedies. The commission shall promulgate rules specifying remedies to implement under par. (b) 3. that are in proportion to the magnitude of the failure to achieve a goal and the degree to which a statewide programs contractor or person administering the utility-administered, large energy customer, or commitment to community program did not make a good faith effort or did not control the factors that resulted in the failure to achieve the goal. The rules shall include all of the following remedies:

AB649,97,16 1. An order that a statewide programs contractor or person take corrective actions, which may include achieving the goal in a year or other time period specified by the commission, in addition to achieving any other goal under this section that applies to that year or time period.

AB649,97,17 2. For a goal under the statewide programs:

AB649,97,20 a. An order that the energy utilities invoke any provisions of a contract under sub. (2) (a) 1., or that a statewide programs contractor invoke any provisions of a subcontract, that impose monetary penalties for failure to achieve a goal.

AB649,97,23 b. An order that the energy utilities modify or terminate the contract with a statewide programs contractor under sub. (2) (a) 1. or an order that a statewide programs contractor modify or terminate any subcontract.

AB649,97,25 3. For a goal under a utility-administered or large energy customer program, an order modifying or terminating the program.

AB649,98,5 4. For a goal of a municipal utility or retail electric cooperative, an order requiring the municipal utility or retail electric cooperative to modify or terminate a contract with or assignment to a wholesale supplier under sub. (7) (am) 3. or (bg), or enter into a contract with a statewide programs contractor under sub. (7) (am) 2., or an order requiring both.

AB649,98,6 5. Any other remedy specified by the commission.

AB649, s. 148 Section 148. 196.374 (9) of the statutes is created to read:

AB649,98,14 196.374 (9) Treatment of certain capital investments. (a) The commission may allow an energy utility to earn a return on capital invested under a utility-administered or supplemental utility program for energy conservation or efficiency equipment that is located on customer premises, including equipment owned by either the energy utility or a customer. The commission may make such an allowance only if the commission determines that the investment is prudent and a cost-effective means of advancing energy conservation or efficiency.

AB649,98,16 (b) If the commission makes an allowance under par. (a), all of the following apply:

AB649,98,20 1. If the investment is made to replace existing equipment, the commission shall allow the energy utility to earn a return only on that portion of the investment that can be attributed to improving energy conservation or efficiency in comparison to the existing equipment.

AB649,98,25 2. If the investment is made to install new equipment that does not replace existing equipment, the commission shall allow the energy utility to earn a return only on that portion of the investment that can be attributed to improving energy conservation or efficiency in comparison to generally available alternative equipment.

AB649,99,3 (c) The commission shall promulgate rules to implement this subsection, including rules specifying the energy conservation or efficiency equipment that qualifies for treatment under par. (a).

AB649, s. 149 Section 149. 196.377 (title) of the statutes is repealed.

AB649, s. 150 Section 150. 196.377 (1) of the statutes is renumbered 196.377.

AB649, s. 151 Section 151. 196.377 (2) of the statutes is repealed.

AB649, s. 152 Section 152. 196.378 (1) (intro.) and (ag) of the statutes are renumbered 196.378 (1r) (intro.) and (ag), and 196.378 (1r) (ag), as renumbered, is amended to read:

AB649,99,11 196.378 (1r) (ag) "Baseline renewable percentage" means the average of an energy electric provider's renewable energy percentage for 2001, 2002, and 2003.

AB649, s. 153 Section 153. 196.378 (1) (am) of the statutes is repealed.

AB649, s. 154 Section 154. 196.378 (1) (ar) of the statutes is renumbered 196.378 (1r) (ar) and amended to read:

AB649,99,20 196.378 (1r) (ar) "Biomass" means a resource that derives energy from wood or plant material or residue, biological waste, crops grown for use as a resource or landfill gases. "Biomass" does not include garbage, as defined in s. 289.01 (9), or nonvegetation-based industrial, commercial or household waste, except that "biomass" includes refuse-derived fuel used for a renewable facility that was in service before January 1, 1998 has the meaning given in s. 196.374 (1) (am).

AB649, s. 155 Section 155. 196.378 (1) (b) of the statutes is repealed.

AB649, s. 156 Section 156. 196.378 (1) (c) and (d) of the statutes are renumbered 196.378 (1r) (c) and (d).

AB649, s. 157 Section 157. 196.378 (1) (fg) of the statutes is renumbered 196.378 (1r) (fg) (intro.) and amended to read:

AB649,100,2 196.378 (1r) (fg) (intro.) "Renewable energy" means electricity derived from a any of the following:

AB649,100,3 1. A renewable resource.

AB649, s. 158 Section 158. 196.378 (1) (fm) (intro.) of the statutes is renumbered 196.378 (1r) (fm) (intro.).

AB649, s. 159 Section 159. 196.378 (1) (fm) 1. of the statutes is renumbered 196.378 (1r) (fm) 1. and amended to read:

AB649,100,9 196.378 (1r) (fm) 1. The electric provider's total renewable energy in that year that is allowed under the rules promulgated under sub. (3) (c).

AB649, s. 160 Section 160. 196.378 (1) (fm) 2. of the statutes is renumbered 196.378 (1r) (fm) 2. and amended to read:

AB649,100,13 196.378 (1r) (fm) 2. The renewable resource credits created or purchased by the electric provider, if any, that the electric provider elects to use in that year.

AB649, s. 161 Section 161. 196.378 (1) (fr) of the statutes is repealed.

AB649, s. 162 Section 162. 196.378 (1) (g) of the statutes is renumbered 196.378 (1r) (g).