Amendment ASA1-AB587

AB587-ASA1,3,22 (bm) "Municipality" means a city, village or town.

AB587-ASA1,3,24 (br) 1. "Out-of-state utility" means a person that is not a public utility and that is any of the following:

AB587-ASA1,4,3 a. A person that is engaged in the production, transmission, delivery or furnishing of heat, light, power or natural gas either directly or indirectly to or for the use of the public in another state.

AB587-ASA1,4,5 b. A lessee, trustee or court-appointed receiver of a person specified in subd. 1. a.

AB587-ASA1,4,9 c. A person that, in any chain of successive ownership, directly or indirectly as a beneficial owner, owns, controls or holds 5% or more of the outstanding voting securities or other voting interest of a person specified in subd. 1. a., with the unconditional power to vote the securities or interest.

AB587-ASA1,4,12 2. "Out-of-state utility" does not include a person specified in subd. 1. a. that is, or is owned or wholly operated by, a municipal electric company, municipality or cooperative association.

AB587-ASA1,4,13 (c) 1. "Public utility" means any of the following:

AB587-ASA1,4,16 a. A person that is engaged in the production, transmission, delivery or furnishing of heat, light, power or natural gas either directly or indirectly to or for the use of the public in this state.

AB587-ASA1,4,18 b. A lessee, trustee or court-appointed receiver of a person specified in subd. 1. a.

AB587-ASA1,4,21 2. "Public utility" does not include a person specified in subd. 1. a. that is, or is owned or wholly operated by, a municipal electric company, municipality or cooperative association.

AB587-ASA1,4,22 (2) In general. Except as provided in subs. (3) and (5):

AB587-ASA1,4,24 (a) A public utility may not engage in an activity related to the sale, leasing or service of appliances.

AB587-ASA1,5,4 (b) A public utility may not engage in the performance of an energy conservation, plumbing, electrical, heating, ventilating, air conditioning or sheet metalworking contracting service unless the service is performed in or on exempt real property, as defined in s. 196.795 (1) (fm).

AB587-ASA1,5,9 (3) Emergency appliance service work. A public utility shall engage in appliance service work in response to circumstances that reasonably appear to the public utility to endanger property or human health or life. The commission shall promulgate rules setting standards for a public utility to use in determining whether property or human health or life is endangered.

AB587-ASA1,5,12 (5) Contracts or arrangements with affiliated interests. Except as provided in sub. (6), a public utility may provide services to an affiliated interest pursuant to a contract or arrangement approved under s. 196.52.

AB587-ASA1,5,14 (5m) Voting securities. A public utility may acquire the voting securities or other voting interest of an affiliated interest only in exchange for cash.

AB587-ASA1,5,16 (6) Separation between public utilities and affiliated interests. (a) In general. 1. A public utility may not do any of the following:

AB587-ASA1,5,18 a. Except as provided in subd. 4. a., share with or lease, sell or transfer to an affiliated interest any building, office space, equipment or research.

AB587-ASA1,5,22 am. Share with or lease, sell or transfer to an affiliated interest any service or system related to appliances or any energy conservation, plumbing, electrical, heating, ventilating, air conditioning or sheet metalworking contracting service or system.

AB587-ASA1,5,24 b. Allow an affiliated interest access to the public utility's computer or other information systems.

AB587-ASA1,6,2 c. Share or subsidize the costs of an affiliated interest's research and development activities.

AB587-ASA1,6,3 d. Jointly purchase with an affiliated interest any goods or services.

AB587-ASA1,6,5 e. Jointly use with an affiliated interest any system for support or corporate oversight or governance.

AB587-ASA1,6,6 1m. An affiliated interest may not do any of the following:

AB587-ASA1,6,9 a. Except as provided in subd. 4. b., share with or lease, sell or transfer to a public utility or out-of-state utility any building, office space, equipment or research in this state.

AB587-ASA1,6,13 am. Share with or lease, sell or transfer to a public utility or out-of-state utility any service or system in this state related to appliances or energy conservation, plumbing, electrical, heating, ventilating, air conditioning or sheet metalworking contracting service or system in this state.

AB587-ASA1,6,15 b. Allow a public utility or out-of-state utility access to the affiliated interest's computer or other information systems in this state.

AB587-ASA1,6,17 c. Share or subsidize the costs of the research and development activities in this state of a public utility or out-of-state utility.

AB587-ASA1,6,19 d. Jointly purchase with a public utility or out-of-state utility any goods or services for use in this state.

AB587-ASA1,6,21 e. Jointly use in this state with a public utility or out-of-state utility any system for support or corporate oversight or governance.

AB587-ASA1,6,23 3. An affiliated interest and a public utility or out-of-state utility shall maintain separate books and records.

AB587-ASA1,6,25 4. a. A public utility may sell real property to an affiliated interest only by a public sale or by offering the real property to the highest qualified bidder.

AB587-ASA1,7,3 b. An affiliated interest may sell real property in this state to a public utility or out-of-state utility only by a public sale or by offering the real property to the highest qualified bidder.

AB587-ASA1,7,4 (b) Restrictions on employes. 1. A public utility may not do any of the following:

AB587-ASA1,7,5 a. Lease any of its employes to an affiliated interest.

AB587-ASA1,7,6 b. Employ the employes, board members or officers of an affiliated interest.

AB587-ASA1,7,10 c. Employ a person who was formerly employed by an affiliated interest during the 180-day period immediately prior to the person's employment by the public utility if the person was not employed by the affiliated interest for the entire 180-day period.

AB587-ASA1,7,11 1m. An affiliated interest may not do any of the following:

AB587-ASA1,7,13 a. Lease any of its employes in this state to a public utility or out-of-state utility.

AB587-ASA1,7,15 b. Employ in this state the employes, board members or officers of a public utility or out-of-state utility.

AB587-ASA1,7,20 c. Employ a person in this state who was formerly employed by a public utility or out-of-state utility with which the affiliated interest is affiliated during the 180-day period immediately prior to the person's employment by the affiliated interest if the person was not employed by the public utility or out-of-state utility for the entire 180-day period.

AB587-ASA1,7,23 3. A public utility shall provide an annual report to the commission that describes its employment of persons formerly employed by an affiliated interest of the public utility.

AB587-ASA1,7,24 (c) Marketing activities. 1. A public utility may not do any of the following:

AB587-ASA1,7,25 a. Promote or advertise its affiliation with an affiliated interest.

AB587-ASA1,8,1 b. Use the brand name, trademark or logo of an affiliated interest.

AB587-ASA1,8,3 c. Use any type of marketing identification that resembles a type used by an affiliated interest.

AB587-ASA1,8,4 d. Provide any information about its customers to an affiliated interest.

AB587-ASA1,8,7 e. Participate with an affiliated interest in any marketing activity, including advertising, sales calls, proposals to existing or potential customers or trade shows, conferences or similar events.

AB587-ASA1,8,8 1m. An affiliated interest may not do any of the following:

AB587-ASA1,8,10 a. Promote or advertise in this state its affiliation with a public utility or out-of-state utility.

AB587-ASA1,8,12 b. Use in this state the brand name, trademark or logo of a public utility or out-of-state utility.

AB587-ASA1,8,14 c. Use in this state any type of marketing identification that resembles a type used by a public utility or out-of-state utility.

AB587-ASA1,8,16 d. Provide any information about its customers in this state to a public utility or out-of-state utility.

AB587-ASA1,8,19 e. Participate with a public utility or out-of-state utility in any marketing activity in this state, including advertising, sales calls, proposals to existing or potential customers or trade shows, conferences or similar events.

AB587-ASA1,8,22 2. A public utility may not provide an affiliated interest with advertising or promotional space on any form of communication, including a bill envelope, to a customer or potential customer of the public utility.

AB587-ASA1,8,25 (d) Nondiscrimination. 1. A public utility may not treat its customers who are also customers of an affiliated interest any differently than the public utility treats its customers who are not also customers of an affiliated interest.

AB587-ASA1,9,4 2. An affiliated interest may not treat its customers in this state who are also customers of a public utility or out-of-state utility with which the affiliated interest is affiliated any differently than the affiliated interest treats its customers who are not customers of the public utility or out-of-state utility.

AB587-ASA1,9,8 (e) Providing certain information to customers. Except as directed by the commission, a public utility may not provide its customers with any information about persons who provide heating, ventilating, air conditioning, plumbing or electrical services or who sell, lease or repair appliances.

AB587-ASA1,9,14 (7) Private cause of action and forfeiture. A public utility or affiliated interest that violates this section or rules promulgated under this section is liable to any person injured by the violation for 3 times the amount of damages incurred as a result of the violation, together with costs and, notwithstanding s. 814.04 (1), reasonable attorney fees, and shall forfeit $2,000 for each violation. Each day of violation is a separate violation.

AB587-ASA1, s. 2 Section 2. 196.374 (1) of the statutes is renumbered 196.374 (1) (intro.) and amended to read:

AB587-ASA1,9,17 196.374 (1) (intro.) In this section "utility":

AB587-ASA1,9,18 (b) "Utility" means a class A gas or electric utility, as defined by the commission.

AB587-ASA1,9,25 (1g) Every utility shall spend annually contribute at least 0.5% of its total annual operating revenues on to fund the programs designed to promote and accomplish energy conservation established by the commission under sub. (1r) (a). The commission may require a utility to spend annually for the purpose of promoting and accomplishing energy conservation, contribute an amount which is more or less than 0.5% of its annual operating revenues if, after notice and hearing, the commission finds that the expenditure of such amount requirement is in the public interest. Except as provided in s. 196.035 (2) (b) or sub. (1r) (b), a utility, other than a municipal utility, may not provide energy conservation services to consumers, either directly or through a contract or any other arrangement with another person.

AB587-ASA1, s. 3 Section 3. 196.374 (1) (a) of the statutes is created to read:

AB587-ASA1,10,7 196.374 (1) (a) "Municipal utility" means a utility that is, or is owned or wholly operated by, a municipal electric company, as defined in s. 66.073 (3) (d), or a city, village or town.

AB587-ASA1, s. 4 Section 4. 196.374 (1r) of the statutes is created to read:

AB587-ASA1,10,15 196.374 (1r) (a) The commission shall establish programs funded under sub. (1g) that promote and, to the extent practicable, accomplish energy conservation. The commission shall develop a request-for-proposals procedure for selecting persons to administer or implement the programs established under this paragraph. Except as provided in par. (b), a utility, other than a municipal utility, may not participate in the administration or implementation of a program established under this paragraph.

AB587-ASA1,10,19 (b) The commission may require a utility, other than a municipal utility, to administer or implement a program established under par. (a) for low-income customers. The commission shall promulgate a rule that defines "low-income customers" for purposes of this paragraph.

AB587-ASA1, s. 5 Section 5. 196.374 (2) of the statutes is repealed.

AB587-ASA1, s. 6 Section 6. 196.374 (2m) of the statutes is created to read:

AB587-ASA1,10,25 196.374 (2m) (a) A utility may engage in efforts to educate consumers about energy conservation, but, except for a municipal utility, may not identify, recommend or suggest any specific person that provides energy conservation services or brand of product that is used for energy conservation.

AB587-ASA1,11,4 (b) Except for contributions under sub. (1g) or the administration or implementation of programs under sub. (1r) (b), a utility, other than a municipal utility, may not provide any financial assistance to a consumer with respect to any energy conservation effort undertaken by or on behalf of the consumer.

AB587-ASA1, s. 7 Section 7. 196.52 (3) (a) of the statutes is renumbered 196.52 (3) (a) (intro.) and amended to read:

AB587-ASA1,11,7 196.52 (3) (a) (intro.) In this subsection, "contract:

AB587-ASA1,11,14 1. "Contract or arrangement" means a contract or arrangement providing for the furnishing of management, supervisory, construction, engineering, accounting, legal, financial, research, development or similar services and any contract or arrangement for the purchase, sale, lease or exchange of any property, right, or thing, or for the furnishing of any service, property, right, or thing, other than management, supervisory, construction, engineering, accounting, legal, financial or similar services.

AB587-ASA1,11,23 (am) Except as provided under par. (b), unless and until the commission gives its written approval, any contract or arrangement is not valid or effective if the contract or arrangement is made between a public utility and an affiliated interest after June 7, 1931. Every public utility shall file with the commission a verified copy of any contract or arrangement, a verified summary of any unwritten contract or arrangement, and any contract or arrangement, written or unwritten, which was in effect on June 7, 1931. The commission shall may approve a contract or arrangement made or entered into after June 7, 1931, only if it shall clearly appear and be established upon all of the following conditions are met:

AB587-ASA1,12,12 2. After investigation, the commission determines that it the contract or arrangement is reasonable and consistent with the public interest and does not result in a violation of s. 196.035 (6) or 196.795 (5) (f). The commission may not approve any contract or arrangement unless satisfactory proof is submitted to the commission of the cost to the affiliated interest of rendering the services or of furnishing the property or service to each public utility or of the cost to the public utility of rendering the services or of furnishing the property or service to each affiliated interest. No proof is satisfactory under this paragraph subdivision unless it includes the original (or verified copies) of the relevant cost records and other relevant accounts of the affiliated interest, or an abstract of the records and accounts or a summary taken from the records and accounts if the commission deems the abstract or summary adequate. The accounts shall be properly identified and duly authenticated. The commission, where reasonable, may approve or disapprove a contract or arrangement without submission of the cost records or accounts.

AB587-ASA1, s. 8 Section 8. 196.52 (3) (a) 2. of the statutes is created to read:

AB587-ASA1,12,15 196.52 (3) (a) 2. "Exempt real property" has the meaning given in s. 196.795 (1) (fm).

AB587-ASA1, s. 9 Section 9. 196.52 (3) (am) 1. of the statutes is created to read:

AB587-ASA1,12,21 196.52 (3) (am) 1. If the contract or arrangement involves an activity related to the sale, lease or service of appliances, as defined in s. 196.795 (1) (b), or the performance of energy conservation, plumbing, electrical, heating, ventilating, air conditioning or sheet metalworking contracting services, the activity or service is performed in or on exempt real property.

AB587-ASA1, s. 10 Section 10. 196.52 (3) (b) 1. of the statutes is amended to read:

AB587-ASA1,13,8 196.52 (3) (b) 1. The Except for a contract or arrangement specified in par. (am) 1. that involves an activity or service that is performed on exempt real property, the requirement for written approval under par. (a) (am) shall not apply to any a contract or arrangement if the amount of consideration involved is not in excess of $25,000 or 5% of the equity of the public utility, whichever is smaller, and does not apply to a telecommunications utility contract or arrangement. Regularly recurring payments under a general or continuing arrangement which aggregate a greater annual amount may not be broken down into a series of transactions to come within the exemption under this paragraph. Any transaction exempted under this paragraph shall be valid or effective without commission approval under this section.

AB587-ASA1, s. 11 Section 11. 196.52 (3) (c) 1. of the statutes is amended to read:

AB587-ASA1,13,11 196.52 (3) (c) 1. May not waive the requirement of the submission of cost records or accounts under par. (a) (am);

AB587-ASA1, s. 12 Section 12. 196.52 (3) (c) 2. of the statutes is amended to read:

AB587-ASA1,13,15 196.52 (3) (c) 2. Shall review the accounts of the affiliated interest as they relate to the contract or arrangement prior to the commission approving or disapproving the contract or arrangement under par. (a) (am); and

AB587-ASA1, s. 13 Section 13. 196.52 (3) (d) of the statutes is created to read:

AB587-ASA1,14,2 196.52 (3) (d) On the effective date of this paragraph .... [revisor inserts date], each public utility and affiliated interest that, before the effective date of this paragraph .... [revisor inserts date], have entered into a contract or arrangement that involves an activity related to the sale, lease or service of appliances, or that involves the performance of energy conservation, plumbing, electrical, heating, ventilating, air conditioning or sheet metalworking contracting services, shall terminate the contract or arrangement if the activity or service is not performed in or on exempt real property. In this paragraph, "public utility" does not include a public utility that is, or is owned or wholly operated by, a municipal electric company, as defined in s. 66.073 (3) (d), or a city, village or town.