Rule-Making Notices
Notice of Proposed Rulemaking
Administration
NOTICE IS HEREBY GIVEN that pursuant to ss.
16.004 (1) and
16.957 (2) (c) 4., 5, and
(4) (b), Stats., interpreting ss.
16.957 (1) to
(4), Stats., and according to the procedure set forth in s.
227.16 (2) (e), Stats., the Department of Administration will adopt the following rule as proposed in this notice, without a public hearing unless, within 30 days after publication of this notice, on
December 15, 2007, the Department of Administration is petitioned for a public hearing by 25 natural persons who will be affected by the rule; by a municipality which will be affected by the rule; or by an association which is representative of a farm, labor, business or professional group which will be affected by the rule.
Analysis Prepared by the Department of Administration
The Department of Administration proposes an order to revise Chapter
Adm 43, relating to non-municipal electric utility low-income assistance fees.
Statutory Authority
Statutes Interpreted
Explanation of agency authority
Under s.
16.957 (2) (c) and
(4) (b), Stats., the Department of Administration is required to promulgate rules for state low-income assistance programs.
Related statute or rule
None
Plain language analysis of proposed amendments
1999 Wisconsin Act 9 included major provisions relating to aspects of electric utility regulation, commonly referred to as “Reliability 2000." That legislation created a new statutory framework within which public benefit programs relating to low-income energy assistance and energy conservation and renewable energy were continued and expanded. Under ss.
16.957 (2) (c) and
(4) (b), Stats., the Department of Administration was directed to promulgate rules setting fees to be collected by utilities from their customers, and establishing requirements and procedures related to those low-income and energy conservation programs.
2005 Wisconsin Act 141 revised many of the provisions of the earlier Act 9 and transferred responsibility and funding for energy conservation and renewable programs to non-municipal electric utilities under supervision of the Public Service Commission. However, low income assistance programs for non-municipal electric utility customers were not changed and continue to be funded as they have been and remain the responsibility of the Department of Administration. This rule revision makes the changes necessary to comply with
2005 Wisconsin Act 141. It also makes modifications to the procedure used to collect the low-income assistance fee, to simplify provisions that have proven cumbersome in practice, and to reflect realistic deadlines for various steps in the procedure.
In numerous locations throughout the entire chapter Adm 43, the term “public benefits" has been replaced with a more specific “low-income assistance".
Proposed revision to s.
Adm 43.03 (1) modifies the definition of “amount invoiced" to clarify that the amount determined by the Department and invoiced to the non-municipal electric utilities is only an estimate of what the Department believes can be collected from utility customers under provisions of the statutes and this rule.
Proposed revision to s.
Adm 43.04 (2) and
(3) clarifies language and removes the requirement to use the named data sources to calculate the low-income assistance need, leaving the choice of data source to the discretion of the Department rather than specify a source that the department cannot assure will always be available. The removal of named data sources is also incorporated into ss.
Adm 43.05 and
43.06.
Proposed revision to s.
Adm 43.05(4) adds a requirement that the Department compare the calculated low-income assistance program funding amounts to be collected to the ability of each non-municipal electric utility to collect that amount in consideration of the statutory 3% cap on each customer's utility bill under ss.
16.957 (4) (c) 3. and
(5) (am). If the calculated amount to be collected exceeds the amount collectable under the cap, the department may reduce the amount.
Proposed revision to s.
Adm 43.06 changes the date, from March 1 to April 1, by which the department must determine the number of residential and non-residential customers used to allocate the amount to be collected. The same section also changes the date, from March 1 to May 15, by which the department must notify each non-municipal electric utility of the amount to be collected and the calculations used to determine that amount.
Proposed revision to s.
Adm 43.07 removes the beginning date for the low income assistance fee collection because the date has already passed. It also changes the date, from April 1 to June 1, by which the non-municipal electric utilities must submit their plans to collect the amount determined for the low-income assistance program. Section
Adm 43.07 (3) reflects the statutorily mandated change in the identification of the low-income assistance program on the utility customer bill. It is now known as “state low-income assistance fee" rather than a “non-taxable customer charge." Section
Adm 43.07 (8) moves back, from May 15 to June 20, the date by which a non-municipal electric utility must file a modified collection plan if the original is disapproved by the department.
Section
Adm 43.08 (3) is rewritten to simplify the reconciliation of actually collected fees with the amount originally estimated by the department. The new requirement applies only to residential collections. Variations are to be reflected by changes to the next year's amount collected. If an under-collection would result in substantial harm to the low-income programs the department may postpone the change until the following reconciliation period. The ability of a non-municipal electric utility to request of waiver of any under-collected fee is removed under s.
Adm 43.08 (3) (c).
The requirement for an initial announcement of program availability is removed from s.
Adm 43.11 because that announcement has already been made. Further, a provision is added to s.
Adm 43.11 requiring the annual report of each non-municipal electric utility to be submitted in an electronic format specified by the department.
Comparison with federal regulations
No known existing or proposed federal regulations comparable to the proposed rules.
Comparison with rules in adjacent states
None of the four states neighboring Wisconsin has created a fee to fund low income energy assistance programs. Consequently, there are no rules comparable to this one which establishes a Wisconsin fee and procedures to calculate and collect it.
Analysis and supporting documents used to determine effect on small business
The proposed rules will have no effect on small businesses. The proposed amendments revise terminology to comply with
2005 Wisconsin Act 141.
Agency Contact Person
Donna Sorenson
Department of Administration
101 E. Wilson Street
Madison, WI 53707-7864
608-266-2887
Submission of Written Comments
Comments may be submitted to the agency contact person that is listed above and via the Wisconsin Administrative Rules Website at
http://adminrules.wisconsin.gov by January 15, 2008.
Initial Regulatory Flexibility Analysis
Pursuant to s.
227.114, Stats., the rule amendments herein are not expected to negatively impact on small businesses. The rule will have no specific affect on small businesses. Small businesses will no longer be required to pay the efficiency portion of the “non-taxable fixed charge" currently included with utility bills. Rather, a comparable amount will now be included in the regular electricity bill. The State Low-Income Assistance Fee, which represents the low-income portion of the previous fee will appear on the electric bill after July 1, 2007, but the fee itself is imposed on all electric utility customers by s.
16.957(4), Stats. The rule does not establish any compliance or reporting requirements, or performance standards for small businesses.
Fiscal Effect
None.
Text of Rule
SECTION 1. Chapter
Adm 43 (title),
Adm 43.01 and 43.02 are amended to read:
NON-MUNICIPAL ELECTRIC UTILITY PUBLIC BENEFITS LOW INCOME ASSISTANCE FEE
Adm 43.01 Authority. Sections
16.004(1) and
16.957 (2)(c) and
(4)(b) Stats., authorize the department to promulgate rules for non–municipal electric utility
public benefits low-income assistance fees.
Adm 43.02 Purpose. The purposes of this chapter are to establish the public benefits low-income assistance fee to be collected by each non–municipal electric utility from its customers, and to provide procedures for collecting that fee.
SECTION 2. Adm 43.03 (1), (15) and (16) are renumbered Adm 40.03 (7m), (9g) and (9r), and amended to read:
Adm 43.03 Definitions. In this chapter:
(7m) “Amount Estimated invoiced amounts" means that portion of the public benefits low-income assistance program funding level that is approved and allocated annually estimated by the department to be collectable by each non–municipal electric utility to be collected from its customers.
(9g) “Public benefits Low-income assistance fee" means that portion of the amount invoiced determined by formula that a non-municipal electric utility allocates to and collects from a customer, and may include approved reasonable and prudent expenses.
(9r) “
Public benefits Low-income assistance program funding level" means the total funds to be collected by all electric providers annually under s.
16.957 (4) and
(5), Stats.
SECTION 3. Adm 43.04 (2) and (3) are amended to read:
(2) Average annual income of low–income household data shall be estimated by averaging using the annual income of all households at or below 150% of the poverty threshold as shown by the most recent data available on or before March 1 from the U.S. census bureau or the department's demographic services section.
(3) The number of low–income households shall be estimated by totaling the number of households at or below 150% of the poverty threshold as shown by the most recent data available on or before March 1 from the U.S. census bureau or the department's demographic services section.
SECTION 4. Adm 43.05 is repealed and recreated to read:
Adm 43.05 Establishing the low-income assistance program funding level. (1) Annually on or before March 1 the department shall determine, in accordance with s.
16.957 (4) and
(5), Stats., the low-income assistance program funding level for the following fiscal year.
(2) When establishing the low-income assistance program funding level, the department shall determine the number of residential and non–residential customers served by each electric provider based on the most recent data available on or before April 1.
(3) After establishing the low-income assistance program funding level, the department, using the formulas provided in s.
16.957 (4) (c) and
(5), Stats., shall determine the portion of the low-income assistance program funding level that the non–municipal electric utilities shall collect each fiscal year. The department shall allocate 70% of this portion to be collected from residential customers and 30% to be collected from non–residential customers.
(4) After determining the residential and non-residential amounts to be collected, the department shall make a determination as to the ability to collect the full amounts as determined by the formula. The basis of the determination shall be multiplying the most recent gross sales of the non-municipal electric utilities by the cap of 3%. If the department determines that the result exceeds the non-municipal electric utility's ability to collect, the department may reduce the amount to be collected to a level the department believes can be collected.
SECTION 5. Adm 43.06 (1) and (2) (a) are amended to read:
