Rule-Making Notices (Hearing Notices)

Public Service Commission

P.O. Box 7854

Madison, WI 53707-7854

FAX [phone]

Analysis Prepared by the Public Service Commission of Wisconsin

Statutory authority: Wis. Stats. ss. 196.02, 196.49 and 227.11.

Statute interpreted: Wis. Stats. s. 196.49

Objective of the rule.

A. This rulemaking will update Wis. Admin. Code ch. PSC 133. This chapter addresses the construction, installation and placing in operation of natural gas facilities and the authorization of natural gas service territories. The chapter sets out commission requirements for when a certificate of authority is required, the information that is to be included in a natural gas utility's application to the commission, and the procedures the commission follows in processing the application.

This chapter was last comprehensively reviewed and updated in 1959. It contains various thresholds that define when commission approval is required for gas utility projects. The proposal includes revisions of the defining thresholds based on agency experience with construction projects since 1959. For example, the chapter contains several provisions with monetary thresholds for requiring commission review and approval that are updated to reflect changes in industry procedures and economics. Wis. Admin. Code s. PSC 133.03 (1) (h), requires utilities to request a certificate of authority for gas line projects that cost $600,000 or four percent of a utility's gross gas operating revenues, whichever is less. If this amount were adjusted for inflation since the last time this specific rule was updated, this amount would now range from approximately $1,000,000 to $1,500,000. This range looks at the construction costs for transmission mains, steel and plastic distribution mains and measurement/regulation station equipment for city gate stations. The electric utility construction rules have adopted a mechanism that automatically adjusts to reflect inflation and other factors. In the attached proposed rules, the Commission has chosen to retain a set amount for the gas construction rules of $1,500,000, the upper range of the inflation adjusted costs.

A provision is added stating that prior commission authorization is not necessary when the relocation of existing pipelines and associated plant is needed to accommodate highway or airport construction.

Additionally, the proposal contains new rules for the filing, review and approval of territorial agreements and changes in utility boundaries because of annexations. These give the utilities clear directions regarding commission filing requirements and processes to be followed in these situations. For example, the proposed rules include definitions of annexation and territorial agreements, and establish what information must be provided to the commission regarding changes in service territory that result from territorial agreements and annexations.

Finally, changes were made in light of statutory changes that were adopted under 2003 Wisconsin Act 89. Rule language has been included that reflects the pre-application consultation that is required of construction applicants with the PSC and Department of Natural Resources. The filing requirements in the proposed rules have also been amended to reflect information that may be necessary to carry out the requirements of 2003 Wisconsin Act 89.

Statutory Authority to Promulgate the Proposed Rule

Wis. Stats. s. 196.49 authorizes the commission to issue rules about commission certification that public convenience and necessity require a gas project. Further, it states that utilities may not begin construction, installation or operation of any new plant, equipment, etc., unless it has complied with commission rules.

Comparison with Existing or Proposed Federal Regulations

The commission is not aware of any existing or proposed federal regulations in this area.

Comparison with Similar Rules in Adjacent States

Existing rule language requires authorization before building plant in certain limited circumstances, such as where the utility is not authorized to serve, where a facility is designed to materially change output, facilities for new types of gas, and, in certain situations, very large projects. The proposed rule clarifies when authorization must be obtained before constructing an intrastate pipeline to deliver to other gas suppliers, and includes an exclusion from the authorization requirement for construction needed due to highway or airport construction.

In Iowa, pipeline companies are required to get authorization to construct, maintain and operate a pipeline if that pipeline goes over or across public or private highways, grounds, waters and streams of any kind, if the pipeline operates at pressures over 150 pounds per square inch or is a transmission line. Illinois requires authorization before construction of any facilities that are not substitutions for existing facilities. Michigan requires construction authorization if a new Certificate of Public Convenience and Necessity is needed, but not otherwise. Minnesota requires authorization for large liquefied or underground gas storage facilities and for pipelines transporting at pressures higher than 200 psi with more than 50 miles of their length in Minnesota. Minnesota requires plans to be filed for gas transmission lines operating at more than 125 psi, not including gas distribution or gas gathering lines and associated facilities.

The proposed rule includes requirements for commission approval of territorial agreements between utilities. Such agreements may be the result of situations such as those involving two utilities serving the same municipality and controversy over the area to be served by two or more utilities. Authorization is also required in certain annexation situations.

Illinois, Michigan and Minnesota each have similar rules requiring commission approval of territorial agreements and/or service provision in cases involving annexation or multiple utilities proving service to a municipality.

The rule contains many of the same requirements for what must be included in a construction application that adjacent states do, for example: maps showing routes, operating pressures, cost and financing information, alternatives, identification of utilities and municipalities affected, environmental information and conservation efforts. The proposed rule adds a requirement for identification of landowners from whom property or easements must be obtained and a statement as to which of these landowners have been notified of the project.

A copy of this entire notice and text of proposed rule may be accessed from the electronic regulatory filing portion of the Commission's Website (psc.wi.gov).

Initial Regulatory Flexibility Analysis

This rulemaking will affect three small gas utilities. Each of these has revenues in excess of $5 million but has 25 or fewer employees. The impact on these businesses will be minimal as this rulemaking clarifies and codifies existing practice. It also decreases the number of circumstances when certain reports must be filed.

Fiscal Estimate

No fiscal effect is anticipated. Further, no substantial fiscal effect on the private sector is anticipated.

NOTICE IS GIVEN that pursuant to s. 227.16 (2) (b), Stats., the commission will hold a public hearing on these proposed rule changes in the Amnicon Falls Hearing Room at the Public Service Commission Building, 610 North Whitney Way, Madison, Wisconsin, on Monday, March 26, 2007, at 1:00 p.m. This building is accessible to people in wheelchairs through the Whitney Way (lobby) entrance. Handicapped parking is available on the south side of the building.

Written Comments

Any person may submit written comments on these proposed rules. The hearing record will be open for written comments from the public, effective immediately, and until Monday, April 2, 2007, at noon (March, April 30, 2007, at noon, if filed by fax). All written comments must include a reference on the filing to docket 1-AC-209. File by one mode only.

Industry: File comments using the Electronic Regulatory Filing system. This may be accessed from the commission's website (psc.wi.gov).

Members of the Public:

If filing electronically: Use the Public Comments system or the Electronic Regulatory Filing system. Both of these may be accessed from the commission's website (psc.wi.gov).

If filing by mail, courier, or hand delivery: Address as shown at beginning of this Notice.

If filing by fax: Send fax comments to [phone]. Fax filing cover sheet MUST state “Official Filing," the docket number 1-AC-209, and the number of pages (limited to 25 pages for fax comments).

Contact Person

Media questions should be directed to Linda Barth, Director of Governmental and Public Affairs at [phone]. Small business questions should be directed to Anne Vandervort at [phone] or [e-mail]. Other questions regarding this matter should be directed to docket coordinator Jeffrey P. Murley at [phone] or [e-mail]. 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 the docket coordinator, as indicated in the previous paragraph, as soon as possible.

Notice of Hearing

Public Service Commission

[CR 07-021]

The Commission proposes to repeal and recreation ch. PSC 114, Wis. Adm. Code, relating to rules concerning electric safety-Revision of Volume 1 of the Wisconsin State Electrical Code.

NOTICE IS GIVEN that a hearing will be held beginning on Friday, April 13, 2007, at 10:00 a.m. in the Amnicon Falls Room (1300) at the Public Service Commission Building, 610 North Whitney Way, Madison, Wisconsin, and continuing at times to be set by the presiding Administrative Law Judge. This building is accessible to people in wheelchairs through the Whitney Way first floor (lobby) entrance. Parking for people with disabilities is available on the south side of the building. Any person with a disability who needs additional accommodations should contact the docket coordinator listed below.

Hearing Date: Friday, April 13, 2007 at 10:00 a.m.

Hearing Location: Amnicon Falls Hearing Room (1300), Public Service Commission, 610 North Whitney Way, Madison, WI

Analysis Prepared by the Public Service Commission of Wisconsin

Statutory authority: ss. 196.74 and 227.11 (2)

Statute interpreted: s. 196.74

By letter dated August 17, 2006, the Commission appointed an advisory committee pursuant to s. 227.13, Stats., to review and submit recommendations for updating Volume 1 of the Wisconsin State Electrical Code. This part of the Code is administered by the Commission.

Volume 1 has been and is based on the National Electrical Safety Code (NESC), which is also known as American National Standards Institute (ANSI) C2. In 1979, 1982, 1985, 1988, 1991, 1994, 1997 and 2003, the Commission adopted the 1977, 1981, 1984, 1987, 1990, 1993, 1997 and 2002 editions of the NESC, respectively, with certain changes, deletions and additions.

The 2007 edition of the NESC was recently issued, and a corresponding revision of Volume 1 is now desired to reflect the latest national code, correct existing deficiencies, and make other changes, as necessary, to update and improve the state code. The rules in ch. PSC 114, Wis. Adm. Code deal with safety requirements for the installation, operation, and maintenance of primarily outdoor electric supply and communications lines and facilities used by utilities, including electric and telephone suppliers, railroads, and cable television providers.

A statement of scope on this rule was approved by the Commission on June 1, 2006, and was published in the Wisconsin Administrative Register on Mid-June 2006. Meetings of the Technical Advisory Committee were held on September 28, 2006, November 10, 2006, and December 8, 2006.

Initial Regulatory Flexibility Analysis

Utilities and others subject to the proposed rules, including municipally-owned electric utilities that serve in rural areas, may experience modest increases in the cost of new rural distribution construction due to the proposed increased requirements for grounding rural lines. The proposed rules will have no effect on small business.

Fiscal Estimate

This rule has no fiscal impact.

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 obtain this document in a different format should contact the docket coordinator listed below.

Questions regarding this matter may be directed to docket coordinator Mohammed Monawer at [phone]. Hearing or speech-impaired individuals may also use the Commission's TTY number: [phone].