AB876: Bill Text

AB876,31 Section 31. 196.379 of the statutes is created to read:

AB876,15,16 196.379 Electric utility purchases of renewable energy. (1) Definitions. In this section:

AB876,15,17 (a) "Electric utility" has the meaning given in s. 196.378 (1) (d).

AB876,15,19 (b) "Large electric utility" means an electric utility that had retail electric sales in 2013 of 2,500,000 megawatt hours or more.

AB876,15,20 (c) "Renewable energy" means electricity derived from a renewable facility.

AB876,15,22 (d) "Renewable facility" means an electric generating facility that is a small-scale facility and that derives energy from any of the following:

AB876,15,23 1. Photovoltaic energy.

AB876,15,24 2. Wind power.

AB876,15,25 3. Gas made from a renewable resource.

AB876,16,1 4. Any other renewable resource specified by rule by the commission.

AB876,16,2 (e) "Renewable resource" has the meaning given in s. 196.374 (1) (j).

AB876,16,3 (f) "Renewable resource credit" has the meaning given in s. 196.378 (1) (i).

AB876,16,5 (g) "Small electric utility" means an electric utility that had retail electric sales in 2013 of less than 2,500,000 megawatt hours.

AB876,16,8 (2) Purpose. The purpose of this section is to maximize the development and deployment of distributed renewable energy generation technologies used at renewable facilities without unreasonable impacts on electric utility rates.

AB876,16,13 (3) Orders. (a) Generally. Except as provided in par. (b), the commission shall issue an order directed to each electric utility requiring the electric utility to offer to purchase, under standard purchase terms and other conditions specified in the order, the renewable energy generated at renewable facilities within the electric utility's service territory that are constructed after the effective date of the order.

AB876,16,17 (b) Exemptions. 1. `Small electric utilities'. In an order under par. (a) directed to a small electric utility, the commission may provide that the small electric utility is not required to purchase renewable energy generated at particular types of renewable facilities specified in the order.

AB876,16,20 2. `Large electric utilities'. If the commission finds that a large electric utility's voluntary initiatives are consistent with the purpose of this section, the commission may do any of the following:

AB876,16,21 a. Exempt the large electric utility from the requirement under par. (a).

AB876,16,24 b. In an order under par. (a) directed to the large electric utility, provide that the large electric utility is not required to purchase renewable energy generated at particular types of renewable facilities specified in the order.

AB876,17,5 3. `Agreements'. Notwithstanding par. (a), an electric utility may purchase renewable energy generated at a renewable facility under terms and conditions that differ from those specified in an order under par. (a) directed at the electric utility if the electric utility and owner or operator of the renewable facility mutually agree to the terms and conditions.

AB876,17,8 (c) Standard purchase terms. An order under par. (a) directed to an electric utility shall specify the standard purchase terms that apply for each type of renewable facility, including terms for all of the following:

AB876,17,10 1. The price paid for renewable energy, based on the commission's consideration of all of the following:

AB876,17,11 a. The cost of producing renewable energy at the type of renewable facility.

AB876,17,12 b. A reasonable rate of return on investment for the type of renewable facility.

AB876,17,14 c. The value of any renewable resource credits acquired by the electric utility under sub. (6) with respect to the renewable facility.

AB876,17,16 d. State and federal financial incentives, including production tax credits, that are available to owners or operators of the type of renewable facility.

AB876,17,19 2.   A schedule of payments for the renewable energy over a sufficient period of time to allow for recovery of the construction and operation costs for the type of renewable facility.

AB876,17,21 3. A maximum limit on the generating capacity for the type of renewable facility.

AB876,17,23 (d) Other conditions. An order under par. (a) directed to an electric utility may include any of the following conditions:

AB876,17,25 1. Requirements for adjusting the standard purchase terms under par. (c) based on changes in operating costs for a type of renewable facility.

AB876,18,2 2.   Different prices for renewable energy generated at renewable facilities of the same type that have different generating capacities.

AB876,18,3 3. Other conditions specified by the commission.

AB876,18,8 (e) Standardized agreements. An order under par. (a) directed to an electric utility shall prescribe for each type of renewable facility a standardized agreement that includes the standard purchase terms and other conditions applicable to the electric utility's purchase of renewable energy from owners or operators of the type of renewable facility.

AB876,18,12 (4) Purchase limits. The commission may limit the requirement of an electric utility to purchase renewable energy under an order under sub. (3) (a) if the commission finds that the limit is consistent with the purpose of this section. The commission may base the limit on any of the following:

AB876,18,14 (a) The number of renewable facilities from which the electric utility must purchase renewable energy.

AB876,18,16 (b) The total installed generating capacity of the renewable facilities from which the electric utility must purchase renewable energy.

AB876,18,18 (c) The total amount of renewable energy that the electric utility must purchase.

AB876,18,24 (5) Reviews. The commission shall periodically review its orders under sub. (3) (a) and, as appropriate, revise the standardized agreements prescribed in the orders to change the standard purchase terms and other conditions. A revision under this subsection does not apply to a standardized agreement entered into by an electric utility and an owner or operator of a renewable facility before the effective date of the revision.

AB876,19,4 (6) Renewable resource credits. An electric utility that purchases renewable energy under an order under sub. (3) (a) acquires, in addition to the renewable energy, the renewable resource credits associated with the generation of the renewable energy, unless an agreement between the parties specifies otherwise.

AB876,19,6 (7) Rules. The commission shall promulgate rules that define "small-scale facility" for purposes of sub. (1) (d).

AB876,32 Section 32. 196.491 (title) of the statutes is amended to read:

AB876,19,9 196.491 (title) Strategic energy assessment; electric generating facilities and transmission lines; customer electric generation.

AB876,33 Section 33. 196.491 (6) of the statutes is amended to read:

AB876,19,14 196.491 (6) Waiver. The commission may waive compliance with any requirement of this section subs. (2) to (5) to the extent necessary to restore service which has been substantially interrupted by a natural catastrophe, accident, sabotage or act of God.

AB876,34 Section 34. 196.491 (7) of the statutes is created to read:

AB876,19,16 196.491 (7) Customer electric generation. (a) In this subsection:

AB876,19,18 1. "Customer" means a customer whose electric generation capacity does not exceed 2 megawatts.

AB876,19,19 2. "Electric utility" does not include a cooperative association.

AB876,19,20 3. "Renewable resource" has the meaning given in s. 196.374 (1) (j).

AB876,19,22 (b) An electric utility shall purchase electricity generated from renewable resources by a customer at the following prices:

AB876,19,25 1.   For electricity that does not exceed the amount of electricity that the electric utility sells to the customer, at a price equal to the retail price the electric utility charges the customer for electricity.

AB876,20,5 2.   For electricity in excess of the amount of electricity that the electric utility sells to the customer, at prices set by the commission by order that reflect peak and off-peak wholesale prices in markets administered by the Midcontinent Independent System Operator, Inc. The commission shall issue orders setting prices under this subdivision on at least an annual basis.

AB876,20,7 (c) An electric utility shall pay a customer for electricity purchases required under par. (b) as follows:

AB876,20,10 1.   Payments shall be based on the total amount of electricity the electric utility purchases from the customer and the total amount of electricity the electric utility sells to the customer in a year.

AB876,20,13 2. In each billing cycle in which the electric utility purchases electricity from the customer, the electric utility shall pay the customer based on the amount of electricity bought and sold in that billing cycle.

AB876,20,16 3.   Annually, the electric utility shall adjust the amount paid to the customer to correct any difference in the amount due to the customer on the basis of billing cycle calculations rather than an annual calculation.

AB876,20,20 (d) The commission shall issue orders specifying requirements for electric utilities to implement the duties under this subsection. The orders shall limit annual purchases under this subsection to an amount that does not exceed one percent of annual electricity sales by all electric utilities.

AB876,35 Section 35. 196.496 (1) of the statutes is amended to read:

AB876,20,25 196.496 (1) Definition. In this section, "distributed generation facility" means a facility for the generation of electricity with a capacity of no more than 15 20 megawatts that is located near the point where the electricity will be used or is in a location that will support the functioning of the electric power distribution grid.

AB876,36 Section 36. Nonstatutory provisions.

AB876,21,2 (1) In this section:

AB876,21,3 (a) "Commission" means the public service commission.

AB876,21,5 (b) "Distributed generation facility" has the meaning given in section 196.496 (1) of the statutes, as affected by this act.

AB876,21,7 (c) "Electric public utility" has the meaning given in section 196.192 (1) of the statutes.

AB876,21,13 (2) The commission shall review the service rules and practices of the electric public utilities with regard to the connection of distributed generation facilities to their electric distribution facilities and, not later than the first day of the 6th month beginning after the effective date of this subsection, shall submit a report to the legislature in the manner provided under section 13.172 (2) of the statutes describing all the following:

AB876,21,15 (a) Compliance by electric public utilities with the rules promulgated under section 196.496 (2) of the statutes.

AB876,21,18 (b) Service rules or practices of the electric public utilities that do not violate the rules promulgated under section 196.496 (2) of the statutes but that do not promote or that impede the development of distributed generation facilities.

AB876,21,24 (3) If, in conducting the review under subsection (2 ), the commission identifies service rules or practices of the electric public utilities that do not violate the rules promulgated under section 196.496 (2) of the statutes but that do not promote or that impede the development of distributed generation facilities, the commission shall promulgate rules that prohibit the service rules or practices or that otherwise ensure the promotion of distributed generation facilities.

AB876,22,7 (4) The commission shall present the statement of scope for any rules required to be promulgated under subsection (3 ) to the governor for approval under section 227.135 (2) of the statutes no later than the first day of the 7th month beginning after the effective date this subsection. The commission shall submit in proposed form any rules required to be promulgated under subsection (3 ) to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 5th month beginning after the governor approves the statement of scope of the rules.

AB876,22,8 (End)