Rule-Making Notices (Hearing Notices)

Contact Person

Questions regarding this matter should be directed to Paul Helgeson at [phone]. Media questions should be directed to Linda Barth, Director of Governmental and Public Affairs at [phone]. Hearing or speech-impaired individuals may also use the Commission's TTY number, if calling from Wisconsin [phone], if calling from outside Wisconsin [phone].

The Commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs accommodations to participate in this proceeding or who needs to get this document in a different format should contact Paul Helgeson, as indicated in the previous paragraph, as soon as possible.

TEXT OF PROPOSED RULE

SECTION 1. Chapter PSC 118 (title) is amended to read:

CHAPTER PSC 118

RENEWABLE RESOURCE CREDIT TRACKING PROGRAM

SECTION 2. PSC 118.01 is amended to read:

PSC 118.01 Scope. This chapter applies to each Wisconsin electric provider that creates an RRC or uses an RRC to meet the requirements of s. 196.378 (2) (a), Stats.

SECTION 3. PSC 118.02 (5) is repealed.

SECTION 4. PSC 118.02 (7) is amended to read:

PSC 118.02 (7) "Program administrator" means the person responsible for carrying who carries out the administrative responsibilities related to the renewable resource credit trading tracking program.

SECTION 5. PSC 118.02 (9) and (10) are repealed.

SECTION 6. PSC 118.02 (13) is repealed and recreated to read:

PSC 118.02 (13) “RRC tracking program" means a program that tracks the selling, transferring, purchasing, and retiring of RRCs created on or after January 1, 2004.

SECTION 7. PSC 118.03 (2) and (3) (a) are repealed.

SECTION 8. PSC 118.04 (1) and (2) (a) to (d) are repealed.

SECTION 9. PSC 118.04 (2) (e) is amended to read:

PSC 118.04 (2) (e) Renewable energy that would meet the definition of an RRC under s. PSC 118.02(10) 196.378(1)(i), Stats., except that it consists of less than one MWh, shall constitute a fraction of an RRC. A fractional RRC may not be smaller than 0.01 MWh.

SECTION 10. PSC 118.04 (2) (g) is created to read:

PSC 118.04 (2) (g) 1. An RRC created before January 1, 2004, may be sold or used to meet an electric provider's minimum percentage requirement under s. 196.378 (2) (a), Stats. The RRCs described in this subdivision may only be used until December 31, 2011, as provided in s. 196.378 (3) (c), Stats.

2. An RRC created on or after January 1, 2004, but produced by a renewable facility that was placed into service before January 1, 2004, may be sold or used to meet an electric provider's minimum percentage requirement under s. 196.378 (2) (a), Stats., only if the RRC constituted an incremental increase in output from the renewable facility due to capacity improvements that were made on or after January 1, 2004, as provided in s. 196.378 (3) (a) 2., Stats. If the renewable facility was originally constructed prior to January 1, 2004, but is entirely replaced with a new and more efficient facility, all of the output from the new facility constitutes an incremental increase and can be used to create RRCs. The RRCs described in this subdivision may only be used through the fourth year after their creation, as provided in s. 196.378 (3) (c), Stats.

3. An RRC created on or after January 1, 2004, that is produced by a renewable facility placed into service on or after January 1, 2004, may be sold or used to meet an electric provider's minimum percentage requirement under s. 196.378 (2) (a), Stats. The RRCs described in this subdivision may only be used through the fourth year after their creation, as provided in s. 196.378 (3) (c), Stats.

SECTION 11. PSC 118.04 (3) is amended to read:

PSC 118.04 (3) When an RRC is credited to an electric provider's account under sub. (2), the account owner may sell or transfer the RRC to another electric provider. Any person selling or transferring an RRC shall report the sale or transfer to the program administrator within 10 days of the transaction. The program administrator shall then credit the RRC account of the new owner and debit the RRC account of the prior owner. An RRC may continue to be sold or traded only if each seller or transferor reports the transaction to the program administrator within 10 days of its consummation.

SECTION 12. Section PSC 118.05 (1), (2) (intro.) and (3) are amended to read:

PSC 118.05 (1) (a) An electric provider may only use the energy of a certified renewable facility for creation of an RRC. The commission shall certify renewable facilities or it may delegate this responsibility to the program administrator.

(b) The program administrator may not award an RRC before the date that the commission certifies a renewable facility is certified, but the program administrator may award an RRC for energy that a certified renewable facility produced subsequent to the date the commission received the it delivered its request for certification.

(2) (intro.) To obtain commission certification, the electric provider generating or purchasing energy from a renewable facility, or a designated representative, shall provide the following registration information in a format approved by the commission:

(3) The commission shall inform both the program administrator and or the program administrator shall inform the electric provider, or its designated representative, whether it has certified a renewable facility for which it has received an application under sub. (2).

SECTION 13. Section PSC 118.05 (4) is repealed.

SECTION 14. Section PSC 118.05 (6) is renumbered PSC 118.06 (5) and is amended to read:

PSC 118.06 (5) The program administrator may not create award RRCs for energy produced by a decertified renewable facility.

SECTION 15. Section PSC 118.06 (1) is amended to read:

PSC 118.06 (1) The commission shall, using a competitive process, contract with a program administrator who may operate either a statewide or a regional RRC tracking program.

SECTION 16. Section PSC 118.06 (2) is repealed and recreated to read:

PSC 118.06 (2) The program administrator shall:

(a) Create an account for each electric provider.

(b) Create an account for each certified renewable facility that participates in the tracking program and record the amount of metered MWh sold at retail that is reported for the facility.

(c) Register each renewable facility the commission has certified, including the following data about the facility:

1. Its electric provider's account number.

2. Its location, owner, technology, date placed in service, and rated capacity.

3. Its expected annual energy production.

4. Information about the facility's meter that allows the program administrator to verify its accuracy.

5. Any additional data the commission considers necessary for proper operation of the tracking program.

(d) Establish and maintain a system for tracking RRCs that does all of the following:

1. Issues a unique electronic certificate for each MWh of renewable energy produced by a certified renewable facility that is located in the area covered by the tracking system, that is owned by a participating electric provider, or that is under contract to deliver electric energy to a participating electric provider. The certificate shall identify which certified renewable facility produced the MWh, when it was produced, and any other characteristics the commission considers necessary.

2. Records RRC ownership and each transfer between account holders.

3. Retires each RRC that meets any of the following:

a. An electric provider uses to meet all or part of its minimum percentage requirement under s. 196.378 (2) (a), Stats.

b. Becomes four years old.

c. An electric provider chooses to retire for any other reason.

(e) Audit registered renewable facilities, as needed, to verify the accuracy of metered production data.

(f) Track and report each electric provider's compliance with the minimum percentage requirement under s. 196.378 (2) (a), Stats.

(g) Perform any other function the commission may designate.

SECTION 17. Section PSC 118.06 (4) (a) is amended to read:

PSC 118.06 (4) (a) Annually, the program administrator shall report to the commission the costs incurred in operating the RRC trading tracking program and recommend an assessment of these costs to electric providers and other tracking system participants that hold RRC accounts. The program administrator shall base part of this proposed assessment of costs on the number of each electric provider's RRC transactions, the size of these transactions, or both. These factors shall determine how a majority of the costs are assessed.

SECTION 18. Section PSC 118.07 is created to read:

PSC 118.07 Aggregation and allocation by wholesale suppliers. If a wholesale supplier aggregates the minimum percentage requirements of its members or customers under s. 196.378 (2) (a), Stats., or allocates RRCs among its members or customers, it shall do so in a manner that is acceptable to the members or customers.