CR 15-003 Rule Text

Natural Gas Public Utility Territorial Agreements

1-AC-245

Clearinghouse Rule No. 15-003

ORDER ADOPTING FINAL RULES

The Public Service Commission of Wisconsin adopts an order to renumber and amend PSC 133.07 (1) and (3); amend PSC 133.03 (1) (intro.), (2) (b), (3) (a) (intro.) and (b), 133.07 (2) (title) and (2), and 133.08 (3) and (6) (d); and create 133.07 (1), (1m) (d), (2m), (3) (b), and (3) (b) (note) regarding natural gas territorial agreements.

REPORT TO THE LEGISLATURE

The Report to the Legislature is includes as Attachment A.

FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS

The Fiscal Estimate and Economic Impact Analysis for this rulemaking are included as Attachment A1.

FINAL REGULATORY FLEXIBILITY ANALYSIS

This rule will not affect small businesses. The s. 227.114 (12), Stats., definition of “small business” states that to be considered a small business, the business must not be dominant in its field. Since gas, electric and water utilities are monopolies in their service territories, they are dominant in their fields, and so, are not small businesses.

EFFECTIVE DATE

These rules shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.), Stats.

CONTACT PEOPLE

Questions regarding this matter should be directed to docket coordinator Adam Ingwell, at [phone] or [e-mail]. Small business questions should be directed to Christine Swailes at [phone] or [e-mail]. Media questions should be directed to the Communications Director 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 matter or who needs to obtain this document in a different format should contact the docket coordinator listed above.

REPORT TO THE LEGISLATURE

A.   TEXT OF THE RULE

The text of the rule is included as Attachment A2.

B.   PLAIN LANGUAGE ANALYSIS

1.   Statutory Authority and Explanation of Authority

This rule is authorized under ss. 196.02 (1) and (3), 196.50 (1) (am), and 227.11, Stats.

Section 227.11 authorizes an agency to promulgate administrative rules. Section 196.02 (1) authorizes the Commission to do all things necessary and convenient to its jurisdiction. Section 196.02 (3) grants the Commission specific authority to promulgate rules. Section 196.50 (1) (am), as created by Act 300, specifically requires the Commission to develop rules in this matter.

Statutes Interpreted

This rule implement s. 196.50 (1), Stats.

Related Statutes or Rules

None.

2.   Brief Summary of Proposed Rules

This rulemaking is being done to bring the commission’s administrative rules relating to natural gas public utility territorial agreements into conformity with 2013 Wisconsin Act 300 (Act 300). Before Act 300, a natural gas utility could not provide service in a municipality already served by a different gas utility unless it received a certificate from the commission. Act 300 allows a gas utility to provide service in a municipality served by another gas utility without commission action, if: (1) the utilities have entered into a territorial agreement about which customers will be served by which utility, (2) the additional utility’s service territory is adjacent to the municipality it now wants to serve, and (3) the additional utility will only serve a limited number of customers in the municipality it now wants to serve. The ½ mile and five additional customer limits are tests for ensuring that only a limited number of customers will be served.

3.   Comparison with Existing or Proposed Federal Regulations

The commission is not aware of any existing or proposed federal legislation on this matter.

4.   Comparison with Similar Rules in Adjacent States

The commission is not aware of any similar rules in surrounding states.

5.   Summary of Factual Data and Analytical Methodologies Used

The commission has considered its experience with granting individual waivers to allow the type of limited agreements authorized under this rulemaking.

6.   Effect on Small Business

This rule will not affect small businesses. The s. 227.114(12), Stats., definition of ‘small business’ states that to be considered a small business, the business must not be dominant in its field. Because electric, gas, and water utilities are monopolies in their service territories, they are dominant in their fields and, so, are not small businesses.

7.   Agency Contact People

Questions regarding this matter should be directed to docket coordinator Adam Ingwell, at [phone] or [e-mail]. Small business questions should be directed to Christine Swailes at [phone] or [e-mail]. Media questions should be directed to the Communications Director 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].

8.   Accommodation

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 to receive this document in a different format should contact the docket coordinator, as indicated in the paragraph above, as soon as possible.

C.   FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS

The Fiscal Estimate and Economic Impact Analysis for this rulemaking is included as Attachment A1.

D.   BASIS AND PURPOSE OF RULES

This rulemaking is being done to bring the commission’s administrative rules relating to natural gas public utility territorial agreements into conformity with 2013 Wisconsin Act 300 (Act 300). Before Act 300, a natural gas utility could not provide service in a municipality already served by a different gas utility unless it received a certificate from the commission. Act 300 allows a gas utility to provide service in a municipality served by another gas utility without commission action, if: (1) the utilities have entered into a territorial agreement about which customers will be served by which utility, (2) the additional utility’s service territory is adjacent to the municipality it now wants to serve, and (3) the additional utility will only serve a limited number of customers in the municipality it now wants to serve.

E.   SUMMARY OF PUBLIC COMMENTS AND COMMISSION RESPONSES

No one testified at the public hearing and no written comments were received.

F.   APPEARANCES AT PUBLIC HEARING

Only commission staff appeared at the hearing.

G.   ANY CHANGES TO THE FISCAL ESTIMATE OR THE ANALYSIS UNDER s. 227.14(2), STATS.

None.

H.   RESPONSE TO LEGISLATIVE COUNCIL COMMENTS

A copy of the Legislative Council report is included as Attachment A3. Responses to the comments in that report are below:

1. (a) and (c) Agree. Change made. The commission has authority under s. 196.02 (1), Stats., to do all things necessary and convenient to its jurisdiction. Further, s. 196.50 (1) (am), Stats., contains one of the conditions that must be met for a limited waiver to be granted. That condition is that the gas utility provide service only to a limited number of customers in the municipality. These rule provisions contained tests for ensuring that only a limited number of customers will be served. This explanation has been added to the summary.

(b) Agree in part. This is not a new requirement, just acknowledgement that municipalities require authorization. The language has been changed to say that proof of authorization must be provided if such authorization is required by the municipality at issue.

4. Agree. Change made.

5. (a) Agree. Change made.

(b) Agree. Change made.

(c) Agree. Change made.

I.   MISCELLANEOUS DETERMINATIONS

The commission’s Wisconsin Environmental Policy Act coordinator examined whether the rules will an environmental impact and concluded that they will not. Commission staff also considered whether the rules will directly or substantially impact housing under s. 227.115, Stats., and concluded that they will not.

TEXT OF THE RULES

SECTION 1. PSC 133.03 (1) (intro.), (2) (b) and (3) (a) (intro.) and (b) are amended to read: