(a) Meter all water uses and sales, where practicable.
(b) Maintain and verify the accuracy of customer meters.
(c) Maintain and verify the accuracy of station meters.
(d) Identify and repair leaks in its distribution system to the extent that it is cost-effective for the public utility to do so.
(e) Control water usage from hydrants.
(f) Maintain a continuing record of system pumpage and metered consumption.
(g) Conduct an annual water audit.
(3) WATER AUDITS. (a) A public utility shall conduct an annual water audit on a calendar year basis and submit the results of the audit to the commission in a format specified by the commission no later than April 1 of each year.
(b) A public utility water audit shall include the measured or estimated volume of all of the following:
1. Water purchased or pumped from all sources.
2. Water used in treatment or production processes.
3. Water entering the distribution system.
4. Water sold, including both metered and unmetered sales.
5. Water not sold but used for utility-authorized purposes, including flushing mains, fire protection, freeze prevention, and other authorized system uses.
6. Water loss.
7. Unknown or unaccounted for water.
(c) The components of a water audit are shown as follows:
System Input Volume (Finished Water + Purchased Water)
Authorized
Consumption
Billed Authorized Consumption
Billed Metered Consumption
(including water exported, wholesale sales)
Revenue
Water
Billed Unmetered Consumption
(Bulk water sales, utility uses)
Unbilled Authorized Consumption
Unbilled Metered Consumption
Non-
revenue Water
Unbilled Unmetered Consumption
Water Losses
Apparent Loss
Unauthorized Consumption
(Theft, uncontrolled hydrants, etc.)
Metering Inaccuracies
(Customer, station meters)
Data Handling Errors
Real Losses
Leakage on Transmission and Distribution Mains
Leakage and Overflows at Utility's Storage Tanks
Leakage on Service Connections
(Up to point of customer meter)
(3) WATER LOSS CONTROL. (a) Each public utility shall calculate its annual percentage of non-revenue water and its percentage of water loss, based on the volume of water entering its distribution system.
(b) A public utility shall submit to the commission a water loss control plan if a water audit shows the public utility has any of the following:
1. A percentage of non-revenue water that exceeds 30 percent.
2. A percentage of water loss that exceeds 15 percent for a Class AB or Class C utility or 25 percent for a Class D utility.
(c) A water loss control plan under par. (b) shall include all of the following:
1. The reasons for the excessive non-revenue water or water loss.
2. A description of the measures that the utility plans to undertake to reduce water loss to acceptable levels within a reasonable time period.
3. An analysis of the costs of implementing a water loss control program, including a comparison of lost sales revenue and the costs that would be avoided by reducing leaks and losses.
4. Any additional information required by the commission.
(d) The commission may require a public utility to conduct a leak detection survey of its entire distribution system if for three consecutive years the public utility's percentage of water loss exceeds 15 percent for a Class AB and Class C utility or 25 percent for a Class D utility.
SECTION 18. Section PSC 185.87 is repealed.
SECTION 19. Section PSC 185.89 is created to read:
PSC 185.89 Adequacy of Water Supply, Emergency Operations and Interruptions of Service. (1) ADEQUACY OF WATER SUPPLY. A public utility shall exercise reasonable diligence to furnish a continuous and adequate supply of water to its customers.
(2) EMERGENCY OPERATION. (a) A public utility shall make reasonable provisions to meet an emergency resulting from the failure of power supply or from fire, storm, or similar events. A public utility shall inform its employees of procedures to be followed in an emergency to prevent or mitigate the interruption or impairment of water service.
(3) INTERRUPTIONS OF SERVICE. (a) A public utility shall make all reasonable efforts to prevent interruptions of service. If an interruption occurs, the public utility shall re-establish service with the shortest possible delay, consistent with safety to its employees, customers, and the general public.
(b) If an emergency interruption significantly affects fire-protection service, a public utility shall immediately notify the fire chief or other responsible local official.
(c) A public utility shall make reasonable efforts to schedule planned interruptions at times that minimize customer inconvenience. A public utility shall make reasonable efforts to notify customers of the time and anticipated duration of a planned interruption.
SECTION 20. Section PSC 185.90 is created to read:
PSC 185.90 Water Supply Shortage. (1) DECLARATION. A public utility may declare a water supply shortage if the public utility cannot adequately meet customer demand due to drought, insufficient source capacity, or excessive demand.
(2) PLAN. A public utility may adopt a water supply shortage curtailment plan and file the plan with the commission under s. PSC 185.21.
(3) APPLICABILITY. Unless a public utility has adopted a water supply shortage curtailment plan under sub. (2), the provisions of this section apply.
(4) TEMPORARY CURTAILMENT. Except as provided in sub. (6), a public utility may temporarily curtail water service to some or all of its customers during a water supply shortage, if the curtailment is necessary to protect public utility facilities, to prevent a dangerous condition, or to alleviate a condition that presents an imminent threat to public health, welfare, or safety.
(5) UTILITY RESPONSIBILITIES. If a public utility determines that it is necessary to curtail service under this section, the public utility shall do all of the following:
(a) Make reasonable efforts to notify customers affected by the water supply shortage.
(b) Request all customers to enact voluntary water conservation measures to reduce water consumption, including limiting irrigation and other non-essential uses.
(c) Implement any curtailment in an equitable manner that allows the public utility to maintain reasonably adequate service to the greatest number of customers.
(d) Promptly restore service.
(6) APPROVAL TO CURTAIL ESSENTIAL USE CUSTOMERS. A public utility may not curtail service to a customer under this section without the commission's prior approval if the customer provides essential public health, welfare, or safety functions that require consistent water service or if any of the conditions described in s. PSC 185.37 (8) (h), (8m), (9), or (10) apply.
(7) REPORT. A public utility shall report to the commission within 7 days of declaring a water supply shortage. The public utility shall include in the report the reasons for any curtailment, the number of customers affected, the duration of the curtailment, and any other information requested by the commission.
SECTION 21. Subchapter IX of chapter PSC 185 is created to read:
Subchapter IX – Water Conservation and Efficiency
PSC 185.95 Definitions. In this subchapter:
(1) “Net cost-effectiveness" means the extent to which a water conservation program or measure is cost-effective, after being adjusted for all of the following:
1. The amount of water savings that would have been achieved in the absence of the water conservation program or measure.
2. The amount of water savings directly attributable to the influence of the water conservation program or measure but that is not specifically included in the program or measure.
(2) “Voluntary program" means a water conservation program that a public utility voluntarily proposes for commission approval.
185.96 Customer Education Requirements. Upon a residential customer request, a public utility shall provide information to the residential customer that may assist the customer in reducing outdoor water use, repairing residential water leaks, and implementing other water conservation measures. This information may be provided on the public utility's web site.
185.97 Voluntary Water Conservation Programs. (1) REQUEST TO ADMINISTER OR FUND A VOLUNTARY PROGRAM. (a) A public utility may file a request with the commission to administer or fund one or more voluntary programs within its service area. A utility requesting such a program shall provide all of the following information:
1. A description of the proposed program, including the target market, eligible measures, delivery strategy, marketing and communications strategy, incentive strategy, and potential market effects for programs that include rebates or other financial incentives.
2. The proposed annual program budget, including administrative costs, and source of funding.
3. Annual and multi-year performance targets that are consistent with commission goals and policies.
4. A portfolio and program level net cost-effectiveness analysis.
5. A description of the public utility's proposed tracking and reporting system.
6. A description of the public utility's proposed evaluation, measurement, and verification plan.
7. A description of how the public utility will coordinate its voluntary program with any statewide water conservation programs.
8. Any other information the commission requests.
(b) A public utility may not administer or fund a voluntary program that provides rebates or other direct financial incentives to its customers for water efficient products or services without the commission's approval.
(2) APPROVAL OF VOLUNTARY PROGRAMS. (a) The commission shall consider each of the following when deciding whether to approve a voluntary program:
1. Whether the program is in the public interest.
2. The likelihood the public utility will achieve its program goals.
3. The inclusion of appropriate water conservation measures.
4. The adequacy of the proposed budget.
5. The net cost-effectiveness of the program.
6. The adequacy of the public utility's evaluation, measurement, and verification plan.
7. The level of coordination with any statewide water conservation programs.
(b) Unless the voluntary program is included in a general rate proceeding, the commission shall issue its decision to approve, deny, or modify a proposed voluntary program in writing within 40 working days after receiving the proposal. If the commission denies or modifies a proposed voluntary program it shall explain its reasons for the denial or modification. If the commission denies a voluntary program, the public utility may revise and resubmit a request for approval of a voluntary program at any time.
(3) MODIFYING OR DISCONTINUING A VOLUNTARY PROGRAM. A public utility may request that the commission authorize the modification or discontinuation of a voluntary program at any time. A public utility may not modify or discontinue a voluntary program without commission approval.
(4) RETURN OF FUNDS. The commission may require a public utility to return any unspent funds collected for a voluntary program approved under this section to its ratepayers.
(5) ANNUAL REPORTS. A public utility receiving commission approval for a voluntary program under this section shall submit an annual report to the commission no later than April 1 each year. The report shall be in a format specified by the commission and shall include all of the following:
(a) A summary of program activities in the previous calendar year.
(b) An itemized accounting of administrative and program costs.
(c) The program balance or deficit at the end of the year.
(d) Estimated water savings attributable to the program, by customer class.
(e) The number of customers receiving rebates or other incentives.
(f) Estimated non-water benefits, including energy savings.
(g) Other performance metrics identified by the public utility.
(h) Any other information requested by the commission.
(6) AUDITS AND VERIFICATION. The commission may conduct an audit, or contract with an independent third-party evaluator to conduct an audit, to verify the performance of a public utility's voluntary program. The public utility shall pay for the costs of the evaluation, as determined by the commission.
Notice of Hearing
Regulation and Licensing
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Department of Regulation and Licensing in sections 227.11 (2) and 480.08 (6), Stats. and interpreting section 480.08 (6), Stats., the Department of Regulation and Licensing will hold a public hearing at the time and place indicated below to consider an order to amend section RL 128.03 (1) (b); and to create section RL 128.04 (6) (c), relating to continuing education.
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