c. Disagree. Keeping the list of exceptions attached to the general rule is clearer.
d. Agree. Change made.
4.
Adequacy of References to Related Statutes, Rules and FormsAgree. Change made.
5.
Clarity, Grammar, Punctuation and Use of Plain Languageb. Agree. The referenced provisions have been rewritten.
c. Agree. Change made.
I. MISCELLANEOUS DETERMINATIONS
The commission’s Wisconsin Environmental Policy Act coordinator examined whether the rules will have an environmental impact and concluded that they will not. Commission staff also considered whether the rules will impact housing under s. 227.115, Stats., and concluded that they will not.
STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012) | Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: (608) 267-0372 |
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis |
|
1. Type of Estimate and Analysis |
☑ Original ☐ Updated Corrected |
2. Administrative Rule Chapter, Title and Number |
Chapters PSC 112, PSC 118, PSC 133, and PSC 184 |
This rulemaking addresses two different areas: cost thresholds for needing to obtain a certificate or approval prior to beginning a proposed project, and displacement facilities. The cost thresholds will be updated, the requirement that a displacement facility be placed in service on or after June 3, 2010 will be stricken and the reference to the Midcontinent Independent System Operator as a basis for the displacement percentage will be revised to streamline the process for determining the displacement percentage |
4. Fund Sources Affected | 5. Chapter 20, Stats. Appropriations Affected |
☐ GPR ☐ FED ☐ PRO ☐ PRS ☐ SEG ☐ SEG-S | |
6. Fiscal Effect of Implementing the Rule |
☑ No Fiscal Effect ☐ Indeterminate | ☐ Increase Existing Revenues ☐ Decrease Existing Revenues | ☐ Increase Costs ☐ Could Absorb Within Agency’s Budget ☐ Decrease Cost |
7. The Rule Will Impact the Following (Check All That Apply) |
☐ State’s Economy ☐ Local Government Units | ☐ Specific Businesses/Sectors ☐ Public Utility Rate Payers ☐ Small Businesses (if checked, complete Attachment A) |
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ☐ Yes ☑ No |
9. Policy Problem Addressed by the Rule |
The rule making amends relevant sections of chs. PSC 112, PSC 133, and PSC 184 to conform with 2011 Wisconsin Act 155, and amends relevant sections of PSC 118 to conform with 2013 Wisconsin Act 300. Finally, getting data from the Midcontinent Independent System Operator has turned out to be time-consuming and less detailed than necessary. |
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments. |
All electric, gas and water utilities, Citizens’ Utility Board, League of Wisconsin Municipalities, , Wisconsin Industrial Energy Group, Municipal Electric Utilities of Wisconsin, Wisconsin Towns Association, Wisconsin Counties Association, Wisconsin Utilities Association, Wisconsin Paper Council, Clean Wisconsin, RENEW Wisconsin. |
11. Identify the local governmental units that participated in the development of this EIA. |
League of Wisconsin Municipalities, Municipal Electric Utilities of Wisconsin, Wisconsin Towns Association, Wisconsin Counties Association. |
12. Summary of Rule’s Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State’s Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred) |
None or minimal. Any economic impact occurred when the statutes were passed. This rulemaking just brings the rules into compliance. |
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule |
This will bring the rules into conformity with the statutes and will streamline the process for determining the percentage of electricity from conventional resources that has been displaced by renewable energy. This percentage is used to calculate the amount of renewable resource credits that may be created. |
14. Long Range Implications of Implementing the Rule |
Keeps the rules in conformity with the statutes. Less confusion. |
15. Compare With Approaches Being Used by Federal Government |
The federal government does not have a similar program. |
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota) |
The commission is not aware of any surrounding states that limit what facilities may be used to recreate renewable energy credits by the date on which the facilities went into service. The commission is not aware of any surrounding states that determine whether certification or approval is necessary by the cost of the project. |
17. Contact Name | 18. Contact Phone Number |
This document can be made available in alternate formats to individuals with disabilities upon request.
TEXT OF THE RULES
SECTION 1. PSC 112.05 (3) (a) (intro.) is renumbered 112.05 (3) (a), and amended to read:
PSC 112.05 (3) (a) Cost thresholds for projects requiring commission review and approval under this section are as follows: those specified in s. 196.49 (5g) (a), Stats., as revised under par. (b). SECTION 2. PSC 112.05 (3) (a) 1. to 3. are repealed.
SECTION 3. PSC 112.05 (3) (b) is amended to read:
PSC 112.05 (3) (b) Beginning in calendar year 2000, and on May 1 on May 1, 2014, and on May 1 of each successive even-numbered year thereafter, the commission shall adjust the estimated gross cost thresholds in par. (a) s. 196.49 (5g) (a), Stats., to account for inflation in reflect changes to the cost of electric utility construction. The adjustment shall be based on the 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 par. (a) by the ratio of the Handy Whitman Index number on January 1 of the most recent even-numbered year (numerator) to the Handy Whitman Index number on January 1, 1998 (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. SECTION 4. PSC 112.05 (3) (c) and (c) (note) are created to read:
PSC 112.05 (3) (c) The commission shall notify all electric utilities of the resulting adjusted cost limits by May 15 of each even-numbered year and shall publicize the adjusted cost limits on the commission’s website. If the 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.
Note: The commission maintains or has access to the Handy-Whitman Index of Public Utility Construction Costs and this reference or a copy may be reviewed by contacting the commission's offices.
SECTION 5. PSC 118.02 (17) is amended to read:
PSC 118.02 (17) “Tracking system account" means the account that the program administrator maintains in order to track the creation, sale, transfer, purchase, and retirement of a renewable energy certificate or a an RRC by a renewable energy tracking system participant.
SECTION 6. PSC 118.03 (1) (intro.) and (2) (intro.) are amended to read:
PSC 118.03 (1) (intro.) An electric provider may use the output of a renewable facility to meet a minimum percentage requirement under s. 196.378 (2) (a), Stats., or to create a an RRC for renewable energy only if the renewable facility that is the source of the electric provider's renewable energy meets all of the following requirements: (2) (intro.) An electric provider or customer or member of an electric provider may create a an RRC for conventional electricity displaced by the use of a displacement facility only if the displacement facility meets all of the following requirements:
SECTION 7. PSC 118.03 (2) (b) is repealed.
SECTION 8. PSC 118.03 (4) (b) (intro.) and 118.03 (5) are amended to read:
PSC 118.03 (4) (b) (intro.) An electric provider may use the production of a facility that satisfies par. (a) to meet a minimum percentage requirement under s. 196.378 (2) (a), Stats., or to create a an RRC if the electric provider demonstrates all of the following: (5)A customer or member of an electric provider may create a an RRC in the manner described in sub. (4).
SECTION 9. PSC 118.04 (1) is amended to read:
PSC 118.04 (1) A renewable energy certificate or a an RRC is used to meet an electric provider's minimum percentage requirement under s. 196.378 (2) (a), Stats., in the compliance period for which the electric provider retires the renewable energy certificate or RRC, regardless of the date on which the renewable energy certificate or RRC is retired in the renewable energy tracking system. SECTION 10. PSC 118.09 (1) is renumbered 118.09 (1m) and amended to read:
PSC 118.09 (1m) For each calendar year, the commission shall, by order, determine the percentage of electricity from conventional resources for the entire state total statewide conventional energy percentage for purposes of calculating the amount of a RRC RRCs per MWh to be created for displaced conventional electricity. The commission shall base make this determination on the annual average mix of resources used to generate electricity in the entire area served by the Midcontinent Independent System Operator the calendar year before the calendar year in which the percentage will be used. The commission may, by order, also establish a different percentage for a specific type of displacement facility if its seasonal or daily operating characteristics justify a percentage that differs from the annual average percentage.
SECTION 11. PSC 118.09 (1) is created to read:
PSC 118.09 Calculation of displaced conventional electricity. (1) For purposes of this section: (a) “Total statewide renewable energy percentage” means the percentage that results from the equation of subd. 1. divided by subd. 2. as shown below:
1. The actual renewable energy sold to Wisconsin retail customers within a given year using information submitted to the commission by electric providers in their most recent renewable portfolio standard compliance reports under s. 196.378 (2) (c), Stats., including actual renewable energy used to serve all of the following programs: a. Wisconsin electric provider renewable portfolio standard programs.
b. Any other federal or state renewable energy programs that apply to Wisconsin electric providers.
c. Wisconsin electric provider voluntary renewable energy programs.
2. The total sales of electricity to Wisconsin retail customers in that same year using information submitted to the commission by electric providers in their most recent renewable portfolio standard compliance reports under s. 196.378 (2) (c), Stats. (b) For purposes of this section, “Total statewide conventional energy percentage” means the percentage that results from the equation of 100% minus the total statewide renewable energy percentage.
