SB450: Bill Text

SB450,92,25 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.

SB450, s. 136 Section 136. 196.374 (7) (c) of the statutes is repealed.

SB450, s. 137 Section 137. 196.374 (7) (cm) of the statutes is created to read:

SB450,93,5 196.374 (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.

SB450, s. 138 Section 138. 196.374 (7) (d) of the statutes is repealed.

SB450, s. 139 Section 139. 196.374 (7) (dm) of the statutes is created to read:

SB450,93,11 196.374 (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.

SB450, s. 140 Section 140. 196.374 (7) (e) (title) of the statutes is repealed and recreated to read:

SB450,93,14 196.374 (7) (e) (title) Audits and reports.

SB450, s. 141 Section 141. 196.374 (7) (e) 1. (intro.) of the statutes is amended to read:

SB450,93,21 196.374 (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:

SB450, s. 142 Section 142. 196.374 (7) (e) 1. a. of the statutes is amended to read:

SB450,94,3 196.374 (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).

SB450, s. 143 Section 143. 196.374 (7) (e) 1. b. of the statutes is amended to read:

SB450,94,7 196.374 (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.

SB450, s. 144 Section 144. 196.374 (7) (e) 1. c. of the statutes is amended to read:

SB450,94,11 196.374 (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.

SB450, s. 145 Section 145. 196.374 (7) (e) 1. e. of the statutes is created to read:

SB450,94,15 196.374 (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.

SB450, s. 146 Section 146. 196.374 (8) of the statutes is renumbered 196.374 (8) (d) and amended to read:

SB450,94,24 196.374 (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.

SB450, s. 147 Section 147. 196.374 (8) (a), (b) and (c) of the statutes are created to read:

SB450,95,9 196.374 (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.

SB450,95,15 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.

SB450,95,21 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.

SB450,96,2 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.

SB450,96,6 (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.

SB450,96,13 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.

SB450,96,23 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:

SB450,96,25 a. The statewide programs contractor or person has repeatedly or grossly failed to meet a goal.

SB450,97,4 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.

SB450,97,5 c. Any other condition specified by the commission by rule.

SB450,97,12 (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:

SB450,97,16 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.

SB450,97,17 2. For a goal under the statewide programs:

SB450,97,20 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.

SB450,97,23 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.

SB450,97,25 3. For a goal under a utility-administered or large energy customer program, an order modifying or terminating the program.

SB450,98,5 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.

SB450,98,6 5. Any other remedy specified by the commission.

SB450, s. 148 Section 148. 196.374 (9) of the statutes is created to read:

SB450,98,14 196.374 (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.

SB450,98,16 (b) If the commission makes an allowance under par. (a), all of the following apply:

SB450,98,20 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.

SB450,98,25 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.

SB450,99,3 (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).

SB450, s. 149 Section 149. 196.377 (title) of the statutes is repealed.

SB450, s. 150 Section 150. 196.377 (1) of the statutes is renumbered 196.377.

SB450, s. 151 Section 151. 196.377 (2) of the statutes is repealed.

SB450, 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:

SB450,99,11 196.378 (1r) (ag) "Baseline renewable percentage" means the average of an energy electric provider's renewable energy percentage for 2001, 2002, and 2003.

SB450, s. 153 Section 153. 196.378 (1) (am) of the statutes is repealed.

SB450, s. 154 Section 154. 196.378 (1) (ar) of the statutes is renumbered 196.378 (1r) (ar) and amended to read:

SB450,99,20 196.378 (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).

SB450, s. 155 Section 155. 196.378 (1) (b) of the statutes is repealed.

SB450, s. 156 Section 156. 196.378 (1) (c) and (d) of the statutes are renumbered 196.378 (1r) (c) and (d).

SB450, s. 157 Section 157. 196.378 (1) (fg) of the statutes is renumbered 196.378 (1r) (fg) (intro.) and amended to read:

SB450,100,2 196.378 (1r) (fg) (intro.) "Renewable energy" means electricity derived from a any of the following:

SB450,100,3 1. A renewable resource.

SB450, s. 158 Section 158. 196.378 (1) (fm) (intro.) of the statutes is renumbered 196.378 (1r) (fm) (intro.).

SB450, s. 159 Section 159. 196.378 (1) (fm) 1. of the statutes is renumbered 196.378 (1r) (fm) 1. and amended to read:

SB450,100,9 196.378 (1r) (fm) 1. The electric provider's total renewable energy in that year that is allowed under the rules promulgated under sub. (3) (c).

SB450, s. 160 Section 160. 196.378 (1) (fm) 2. of the statutes is renumbered 196.378 (1r) (fm) 2. and amended to read:

SB450,100,13 196.378 (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.

SB450, s. 161 Section 161. 196.378 (1) (fr) of the statutes is repealed.

SB450, s. 162 Section 162. 196.378 (1) (g) of the statutes is renumbered 196.378 (1r) (g).

SB450, s. 163 Section 163. 196.378 (1) (h) (intro.) of the statutes is renumbered 196.378 (1r) (h) and amended to read:

SB450,100,19 196.378 (1r) (h) "Renewable resource" means any of the following: has the meaning given in s. 196.374 (1) (j).

SB450, s. 164 Section 164. 196.378 (1) (h) 1., 1m. and 2. of the statutes are repealed.

SB450, s. 165 Section 165. 196.378 (1) (i) of the statutes is renumbered 196.378 (1r) (i) and amended to read:

SB450,100,25 196.378 (1r) (i) "Renewable resource credit" means a renewable resource credit, as defined in s. 196.378 (1) (i), 2007 stats., or a renewable resource credit calculated in accordance with rules promulgated created under sub. (3) (a) 1. and 2.

SB450, s. 166 Section 166. 196.378 (1) (j) of the statutes is repealed.

SB450, s. 167 Section 167. 196.378 (1) (k) of the statutes is renumbered 196.378 (1r) (k).

SB450, s. 168 Section 168. 196.378 (1) (o) of the statutes is repealed.

SB450, s. 169 Section 169. 196.378 (1) (p) of the statutes is renumbered 196.378 (1r) (p).

SB450, s. 170 Section 170. 196.378 (1g) of the statutes is created to read:

SB450,101,6 196.378 (1g) Legislative findings. The legislature finds all of the following:

SB450,101,8 (a) It is essential to the health and safety and economic well-being of Wisconsin that the state maintain a highly reliable electric system at all times.

SB450,101,13 (b) Increased reliance on out-of-state electric generation dependent on long-distance transmission of electricity to deliver the electricity to Wisconsin creates reliability and congestion cost risks that are significantly greater than reliance on electric generation located in Wisconsin at or near centers of demand for electricity.

SB450,101,15 (c) Historically, Wisconsin has relied on imports of electricity from other states for about 15 percent of the state's electricity needs.

SB450,101,20 (d) It is essential to the health and safety and economic well-being of Wisconsin that the state take actions to mitigate global climate change from emissions of greenhouse gasses. Central to such mitigation efforts is reducing reliance on electricity produced from fossil fuels through policies such as the renewable portfolio standard.

SB450,102,2 (e) As of the effective date of this paragraph .... [LRB inserts date], the most abundant and affordable sources of electricity that can be used to comply with the renewable portfolio standard are wind resources in western Minnesota, the Dakotas, and Iowa. Extensive reliance on these resources for compliance with the renewable portfolio standard will produce a significant increase in dependence on imported electricity with the associated reliability and congestion cost risks.

SB450,102,6 (f) To balance the competing imperatives of maintaining the reliability of the electric system and reducing dependence on electricity produced from fossil fuels, it is essential that Wisconsin adopt a renewable portfolio standard that requires at least in part the production of electricity from renewable resources in this state.

SB450, s. 171 Section 171. 196.378 (1r) (de) of the statutes is created to read:

SB450,102,12 196.378 (1r) (de) "In-state percentage" means, with respect to an electric provider, the portion of the electric provider's renewable energy percentage that is derived from electricity generated by renewable facilities located in this state, renewable resource credits separated from such electricity, nonelectric energy, and nonelectric energy certificates.

SB450, s. 172 Section 172. 196.378 (1r) (dm) of the statutes is created to read:

SB450,102,17 196.378 (1r) (dm) "Nonelectric energy" means any of the following types of energy produced or generated at a facility located in this state and placed in service on or after the effective date of this paragraph .... [LRB inserts date], but only if the energy displaces fossil fuel use in this state:

SB450,102,19 1. The thermal output from a cogeneration production plant, as defined in s. 79.005 (1g).

SB450,102,22 2. The thermal output from a biomass-fueled boiler, but only if, after the effective date of this subdivision .... [LRB inserts date], the boiler was converted from a fossil fuel-fueled boiler to a biomass-fueled boiler.