Notice of Hearing
Public Service Commission
Notice is given that a public hearing will be held with respect to a proposed amendment to s. PSC 112.05, Wis. Adm. Code, in the Amnicon Falls Hearing Room, Public Service Commission Building, 610 North Whitney Way, Madison, Wisconsin 53705, on Thursday, February 26, 1998, at 1:30 p.m. This building is accessible to people in wheelchairs through the Whitney Way main floor entrance (Lobby). Parking for people with disabilities is available along the south side of the building. Any party with a disability who needs accommodations should contact Richard Teslaw at 608-267-9766.
Analysis Prepared by the Public Service Commission of Wisconsin
Statutory authority: ss. 196.02(3), 196.49(3)(b), and 227.11
Statutes interpreted: ss. 196.49, 196.491, and 196.495
On December 4, 1997, the Commission directed on its own motion that a rulemaking proceeding be initiated to amend ch. PSC 112, Wis. Adm. Code, specifically, s. PSC 112.05, Wis. Adm. Code.
This chapter describes which electric construction projects are of significant scope and cost as to require review and approval under the statutory provisions of s. 196.49, Stats., for monetary thresholds or limits based on the estimated cost of the project. These rules were last revised in late 1995 and became effective December 1, 1995.
The principal reasons for the proposed amendment are to adjust the cost thresholds of the current rules and to strike a balance between the needs of the public and Commission for oversight, review and approval of the larger, more significant projects and the utility's need for reasonable latitude to pursue the large number of less significant, minor and routine construction projects without the delays and burdens of specific regulatory approval.
On September 30, 1997, the Commission, in its Report to the Governor on Electric Reliability, recommended increasing the cost thresholds of s. PSC 112.05, Wis. Adm. Code, to eliminate some projects from Commission review and approval. This recommendation furthers the effort to streamline the regulatory review process and to address reliability needs. Commission staff analysis of construction project applications indicates that many projects are additions, upgrades or modifications to existing generating plants and substations or are minor transmission improvements. The ability to complete these types of projects quickly will enable utilities to respond to local reliability concerns without either an unreasonable rate impact for utility customers or the increased risk of environmental harm.
Text of Rule
The Commission proposes that s. PSC 112.05(3), Wis. Adm. Code, be amended as follows:
(3)(a) Cost thresholds for projects requiring commission review and approval under this section are as follows:
1. If the applicant electric utility's prior year electric operating revenues are less than $2,500,000$5,000,000, any project whose estimated gross cost exceeds $50,000$100,000.
2. If the applicant electric utility's prior year electric operating revenues are between $2,500,000$5,000,000 and $150,000,000$250,000,000, any project whose estimated gross cost exceeds 2 percent of these revenues.
3. If the applicant electric utility's prior year electric operating revenues are more than $150,000,000$250,000,000, any project whose estimated gross cost exceeds $3,000,000$5,000,000.
Beginning in 1996,calendar year 2000, and on May 1 of each successive even-numbered year, thereafter, the Commission shall adjust the estimated gross cost thresholds in paragraph (a) to account for inflation in the cost of electric utility construction. The adjustment shall be based on cost index numbers published in the “Handy-Whitman Index of Public Utility Construction Costs, Cost Trends of Electric Utility Construction - North Central Region for Total Transmission Plant” (Handy-Whitman Index). The Commission shall make the adjustment calculation by multiplying each gross cost threshold in paragraph (a) by the ratio of the
cost indexHandy Whitman Index number of
on January 1 of the most recent even-numbered year (numerator) to the cost indexHandy Whitman Index number ofon January 1, 19941998 (denominator). The commission shall notify all electric utilities of the resulting adjusted cost limits by May 15 of each even-numbered year. If the referenced Handy-Whitman Index is no longer available, an equivalent successor index may be used which is generally recognized by the electric industry and acceptable to the commission.
Fiscal Estimate and Initial Regulatory Flexibility Analysis
There will be no fiscal impact of the proposed rules on state or local units of government. Utilities and the Commission should benefit from a reduction in the number of small and relatively minor projects that will require specific review and approval. The proposed amendment will have no effect on small businesses.
This is a Type II action under s. PSC 4.10(2), Wis. Adm. Code. An environmental assessment was prepared to determine if an environmental impact statement is necessary under s. 1.11, Stats. It has been determined that no significant environmental impacts are likely. Therefore, an environmental impact statement is not required. Persons wishing to comment on the environmental aspects of this case should send comments to Kathy Zuelsdorff, Electric Division, Public Service Commission, P.O. Box 7854, Madison, WI 53707-7854, or call 608-266-2730. In order to be considered in this analysis, comments must be received within 20 days of the date of this notice.
Legal or procedural questions may be directed to the Examining Division, at 608-266-1261.
Other questions regarding this matter may be directed to James D. Loock, Chief Engineer, at 608-266-3165 or Leon Swerin, Legal Counsel, at 608-267-3589 of the Public Service Commission.
Notice of Submission of Proposed Rules to the Presiding Officer of each House of the Legislature, Under S. 227.19, Stats.
Please check the Bulletin of Proceedings for further information on a particular rule.
Ch. Adm 2 - Relating to the use of state buildings and facilities.
Chs. Comm 18 and 82 - Relating to elevators and mechanical lifting devices.
Ch. DOC 310 - Relating to the inmate complaint review system.
SS. ER 18.02, 18.03 and 18.15 - Relating to annual leave, sick leave credits, the adjustment of sick leave balances for state employes and catastophic leave.
S. Trans 201.15 - Relating to erecting outdoor advertising signs where messages may be changed by electronic process.
S. Trans 276.07 (15) and (31) - Relating to allowing the operation of “double bottoms” (and certain other vehicles) on certain specified highways.
Administrative Rules Filed With The
Revisor Of Statutes Bureau
The following administrative rules have been filed with the Revisor of Statutes Bureau and are in the process of being published. The date assigned to each rule is the projected effective date. It is possible that the publication of these rules could be delayed. Contact the Revisor of Statutes Bureau at (608) 266-7275 for updated information on the effective dates for the listed rules.
Agriculture, Trade & Consumer Protection
(CR 97-43):
An order creating ss. ATCP 31.03 and 31.08, relating to standards for repealing site-specific prohibitions against the use of pesticides found in groundwater.
Effective 02-01-98.
An order creating s. Ins 2.80, relating to valuation of reserve liabilities for life insurance.
Effective 03-01-98.
An order amending s. NR 101.13 (2), relating to the wastewater fee program.
Effective 02-01-98.
An order affecting s. NR 182.04 and chs. NR 590 and 600 to 690, relating to hazardous waste management.
Effective 03-01-98.
An order affecting ss. RL 17.02, 17.03 and 17.12, relating to the employment of personal assistants by real estate salespeople and broker-employes.
Effective 02-01-98.
An order affecting chs. RL 80 to 87, relating to the regulation of certified and licensed appraisers.
Effective 02-01-98.
The State of Wisconsin
Department of Administration
Document Sales Unit
P.O. Box 7840
Dated Material. Please Do Not Delay!
