AB133-SSA1-SA1,351,76 a. Proceed with diligence with respect to obtaining the certificate and, except
7as provided in subd. 6., constructing the transmission facilities.
AB133-SSA1-SA1,351,128 b. If the commission determines that the cost of the transmission facilities is
9reasonable and prudent, transfer the transmission facilities to the transmission
10company at net book value when construction is completed in exchange for additional
11securities of the transmission company on a basis that is consistent with the
12securities that were initially issued to the public utility affiliate.
AB133-SSA1-SA1,351,2013 6. If the construction of a transmission facility specified in subd. 5. a. is not
14completed within 3 years after a certificate is issued for the transmission facility
15under s. 196.49 or 196.491 (3), the transmission company may assume responsibility
16for completing construction of the transmission facility. If the transmission company
17assumes responsibility for completing construction under this subdivision, the
18transmission company shall carry out any obligation under any contract entered into
19by the public utility with respect to the construction until the contract is modified or
20rescinded by the transmission company to the extent allowed under the contract.
AB133-SSA1-SA1,351,2221 7. Any transmission facilities that are contributed to the transmission
22company shall be valued at net book value at the time of the transfer.
AB133-SSA1-SA1,352,723 (bm) Lease of transmission facilities. If a public utility affiliate is not able to
24contribute its transmission facilities to the transmission company as required under
25par. (b) due to merger-related accounting requirements, the public utility affiliate

1shall transfer the transmission facilities to the transmission company under a lease
2for the period of time during which the accounting requirements are in effect and,
3after such requirements are no longer in effect, contribute the transmission facilities
4to the transmission company under par. (b). A public utility affiliate that transfers
5transmission facilities under a lease under this paragraph does not qualify for the
6asset cap exception under par. (a) unless, during the term of the lease, the public
7utility affiliate does not receive any voting interest in the transmission company.
AB133-SSA1-SA1,352,108 (c) Contribution of land rights. 1. A public utility affiliate that commits to
9contributing land rights to the transmission company under par. (a) 2. shall do each
10of the following:
AB133-SSA1-SA1,352,1811 a. Except as provided in subd. 2., if the land right is assigned to a transmission
12account for rate-making purposes and is not jointly used for electric and gas
13distribution facilities by the public utility affiliate, the public utility affiliate shall
14convey or assign at book value all of its interest in the land right to the transmission
15company, except that any conveyance or assignment under this subd. 1. a. shall be
16subject to the rights of any joint user of the land right and to the right of the public
17utility affiliate to nondiscriminatory access to the real estate that is subject to the
18land right.
AB133-SSA1-SA1,353,319 b. If the land right is jointly used, or is intended to be jointly used, for electric
20and gas distribution facilities by the public utility affiliate, the public utility affiliate
21shall enter into a contract with the transmission company that grants the
22transmission company a right to place, maintain, modify or replace the transmission
23company's transmission facilities on the real property that is subject to the land right
24during the life of the transmission facilities and the life of any replacements of the
25transmission facilities. A right granted in a contract under this subd. 1. b. shall be

1paramount to the right of any other user of the land right, except that a right granted
2in such a contract shall be on par with the right of the public utility affiliate to use
3the land right for electric or gas distribution facilities.
AB133-SSA1-SA1,353,94 2. If a public utility affiliate is prohibited from making a conveyance or
5assignment described in subd. 1. a., the public utility affiliate shall enter into a
6contract with the transmission company that grants the transmission company
7substantially the same rights as under such a conveyance or assignment. For
8purposes of a contract under this subdivision, a land right shall be valued at book
9value, not at market value.
AB133-SSA1-SA1,353,1510 3. The commission shall resolve any dispute over the contribution of a land
11right under subd. 1. or 2., including a dispute over the valuation of such a land right,
12unless a federal agency exercises jurisdiction over the dispute. During the pendency
13of any dispute that is before the commission or a federal agency, the transmission
14company shall be entitled to use the land right that is the subject to the dispute and
15shall be required to pay any compensation that is in dispute into an escrow account.
AB133-SSA1-SA1, s. 2335uj 16Section 2335uj. 196.485 (6) of the statutes is created to read:
AB133-SSA1-SA1,353,1917 196.485 (6) Electric utilities, transmission dependent utilities and retail
18electric cooperatives.
No later than the first day of the 12th month beginning after
19the first public utility affiliate files a commitment under sub. (5) (a) 2.:
AB133-SSA1-SA1,353,2320 (a) An electric utility, other than a public utility affiliate, may transfer all of its
21integrated transmission facilities to the transmission company on the same terms
22and conditions as a contribution of transmission facilities and land rights by a public
23utility affiliate under sub. (5) (b) and (c).
AB133-SSA1-SA1,354,524 (b) A transmission-dependent utility or retail electric cooperative may
25purchase equity interests in the transmission company at a price that is equivalent

1to net book value and on terms and conditions that are comparable to those for public
2utility affiliates that have contributed transmission facilities to the transmission
3company. A purchaser under this paragraph may contribute funds to the
4transmission company that are no more than the value of its prorated shares based
5on firm electric usage in this state in 1999.
AB133-SSA1-SA1, s. 2335uk 6Section 2335uk. 196.485 (6m) of the statutes is created to read:
AB133-SSA1-SA1,354,117 196.485 (6m) Dividends, profits and gains. The commission may not treat any
8dividend received by a transmission utility from the transmission company or any
9gain or profit of a transmission utility from the sale or other disposition of securities
10issued by the transmission company as a credit against the retail revenue
11requirements of the transmission utility.
AB133-SSA1-SA1, s. 2335um 12Section 2335um. 196.485 (7) of the statutes is created to read:
AB133-SSA1-SA1,354,1513 196.485 (7) Enforcement. A wholesale or retail customer of a public utility
14affiliate may petition the circuit court for Dane County for specific performance of
15a commitment filed under sub. (5) (a) 2. or 3.
AB133-SSA1-SA1, s. 2335uo 16Section 2335uo. 196.485 (8) of the statutes is created to read:
AB133-SSA1-SA1,354,2117 196.485 (8) Penalties. A public utility affiliate that fails to complete the
18contribution of transmission facilities to the transmission company by the
19completion date specified in the filing under sub. (5) (a) 2. shall forfeit $25,000 for
20each day that completion of the contribution is delayed if the transmission company
21is legally able to accept the contribution.
AB133-SSA1-SA1, s. 2335uq 22Section 2335uq. 196.487 of the statutes is created to read:
AB133-SSA1-SA1,354,23 23196.487 Reliability of electric service. (1) Definitions. In this section:
AB133-SSA1-SA1,354,2424 (a) "Public utility affiliate" has the meaning given in s. 196.795 (1) (L).
AB133-SSA1-SA1,354,2525 (b) "Transmission company" has the meaning given in s. 196.485 (1) (ge).
AB133-SSA1-SA1,355,9
1(2) Commission order. If the commission determines that a public utility
2affiliate or the transmission company is not making investments in the facilities
3under its control that are sufficient to ensure reliable electric service, the commission
4shall order the public utility affiliate or transmission company to make adequate
5investments in its facilities that are sufficient to ensure reliable electric service. An
6order under this subsection shall require the public utility affiliate or transmission
7company to provide security in an amount and form that, to the satisfaction of the
8commission, is sufficient to ensure that the public utility affiliate or transmission
9company expeditiously makes any investment that is ordered.
AB133-SSA1-SA1,355,12 10(3) Cost recovery. The commission shall allow a public utility affiliate that is
11subject to an order under sub. (2) to recover in its retail electric rates the costs that
12are prudently incurred in complying with the order.
AB133-SSA1-SA1, s. 2335wb 13Section 2335wb. 196.491 (3) (d) 3r. of the statutes is created to read:
AB133-SSA1-SA1,355,1814 196.491 (3) (d) 3r. For a high-voltage transmission line that is proposed to
15increase the transmission import capability into this state, existing rights-of-way
16are used to the extent practicable and the routing and design of the high-voltage
17transmission line minimizes environmental impacts in a manner that is consistent
18with achieving reasonable electric rates.
AB133-SSA1-SA1, s. 2335wd 19Section 2335wd. 196.491 (3) (d) 3t. of the statutes is created to read:
AB133-SSA1-SA1,355,2520 196.491 (3) (d) 3t. For a high-voltage transmission line that is designed for
21operation at a nominal voltage of 345 kilovolts or more, the high-voltage
22transmission line provides usage, service or increased regional reliability benefits to
23the wholesale and retail customers or members in this state and the benefits of the
24high-voltage transmission line are reasonable in relation to the cost of the
25high-voltage transmission line.
AB133-SSA1-SA1, s. 2335wf
1Section 2335wf. 196.491 (3) (gm) of the statutes is created to read:
AB133-SSA1-SA1,356,162 196.491 (3) (gm) The commission may not approve an application filed after the
3effective date of this paragraph .... [revisor inserts date], under this section for a
4certificate of public convenience and necessity for a high-voltage transmission line
5that is designed for operation at a nominal voltage of 345 kilovolts or more unless the
6approval includes the condition that the applicant shall pay the fees specified in sub.
7(3g) (a). If the commission has approved an application under this section for a
8certificate of public convenience and necessity for a high-voltage transmission line
9that is designed for operation at a nominal voltage of 345 kilovolts or more that was
10filed after April 1, 1999, and before the effective date of this paragraph .... [revisor
11inserts date], the commission shall require the applicant to pay the fees specified in
12sub. (3g) (a). For any application subject to this paragraph, the commission shall
13determine the cost of the high-voltage transmission line, identify the counties,
14towns, villages and cities through which the high-voltage transmission line is routed
15and allocate the amount of investment associated with the high-voltage
16transmission line to each such county, town, village and city.
AB133-SSA1-SA1, s. 2335wh 17Section 2335wh. 196.491 (3g) of the statutes is created to read:
AB133-SSA1-SA1,356,2518 196.491 (3g) Fees for certain high-voltage transmission lines. (a) A person
19who receives a certificate of public convenience and necessity for a high-voltage
20transmission line that is designed for operation at a nominal voltage of 345 kilovolts
21or more under sub. (3) shall pay the department of administration an annual impact
22fee as specified in the rules promulgated by the department of administration under
23s. 16.969 (2) (a) and shall pay the department of administration a one-time
24environmental impact fee as specified in the rules promulgated by the department
25of administration under s. 16.969 (2) (b).
AB133-SSA1-SA1,357,4
1(b) A person that pays a fee under par. (a) may not use the payment to offset
2any other mitigation measure that is required in an order by the commission under
3sub. (3) regarding the certificate of public convenience and necessity specified in par.
4(a).
AB133-SSA1-SA1, s. 2335wj 5Section 2335wj. 196.491 (3m) (b) 2. of the statutes is amended to read:
AB133-SSA1-SA1,357,106 196.491 (3m) (b) 2. The analytical process specified in subd. 1. b. shall, to the
7extent practicable, be consistent with the analytical process described in the merger
8enforcement policy of the federal department of justice and the federal trade
9commission regarding horizontal acquisitions and mergers that are subject to 15
10USC 1
, 18 or 45
, as defined in s. 196.485 (1) (dr).
AB133-SSA1-SA1, s. 2335wL 11Section 2335wL. 196.494 (3) of the statutes is amended to read:
AB133-SSA1-SA1,357,2012 196.494 (3) No later than December 31, 2004, the The commission may shall,
13under this subsection, issue an order requiring an electric utility to construct or
14procure, on a competitive basis, the construction of transmission facilities specified
15by the commission in its order if the commission determines that, based on the
16results of the study under sub. (2),
such construction is necessary to relieve a
17constraint on a transmission system and the construction will materially benefit the
18customers of the electric utility or other electric utilities or of an independent system
19operator, as defined in s. 196.485 (1) (d), or independent transmission owner, as
20defined in s. 196.485 (1) (dm).
AB133-SSA1-SA1, s. 2335wn 21Section 2335wn. 196.494 (5) of the statutes is created to read:
AB133-SSA1-SA1,358,222 196.494 (5) The governor may, on behalf of this state, enter into an interstate
23compact that establishes a joint process for the states in the upper midwest region
24of the United States to determine the need for and siting of regional electric
25transmission facilities that may affect electric service in this state. The governor

1may not enter into a compact under this subsection unless the compact includes
2requirements and procedures for establishing each of the following:
AB133-SSA1-SA1,358,43 (a) Compliance with each state's environmental and siting standards for
4transmission facilities.
AB133-SSA1-SA1,358,55 (b) A regional need determination for transmission facilities.
AB133-SSA1-SA1,358,76 (c) A mechanism for resolving conflicts between the states regarding the siting
7of transmission facilities.
AB133-SSA1-SA1, s. 2335wp 8Section 2335wp. 196.52 (3) (a) of the statutes is amended to read:
AB133-SSA1-SA1,359,139 196.52 (3) (a) In this subsection, "contract or arrangement" means a contract
10or arrangement providing for the furnishing of management, supervisory,
11construction, engineering, accounting, legal, financial or similar services and any
12contract or arrangement for the purchase, sale, lease or exchange of any property,
13right, or thing, or for the furnishing of any service, property, right, or thing, other
14than management, supervisory, construction, engineering, accounting, legal,
15financial or similar services, but "contract or arrangement" does not include a
16contract or arrangement under which a transmission utility, as defined in s. 196.485
17(1) (i), sells or transfers securities, as defined in s. 196.485 (1) (fe), that have been
18issued by a transmission company, as defined in s. 196.485 (1) (ge)
. Except as
19provided under par. (b), unless and until the commission gives its written approval,
20any contract or arrangement is not valid or effective if the contract or arrangement
21is made between a public utility and an affiliated interest after June 7, 1931. Every
22public utility shall file with the commission a verified copy of any contract or
23arrangement, a verified summary of any unwritten contract or arrangement, and
24any contract or arrangement, written or unwritten, which was in effect on June 7,
251931. The commission shall approve a contract or arrangement made or entered into

1after June 7, 1931, only if it shall clearly appear and be established upon
2investigation that it is reasonable and consistent with the public interest. The
3commission may not approve any contract or arrangement unless satisfactory proof
4is submitted to the commission of the cost to the affiliated interest of rendering the
5services or of furnishing the property or service to each public utility or of the cost
6to the public utility of rendering the services or of furnishing the property or service
7to each affiliated interest. No proof is satisfactory under this paragraph unless it
8includes the original (or verified copies) of the relevant cost records and other
9relevant accounts of the affiliated interest, or an abstract of the records and accounts
10or a summary taken from the records and accounts if the commission deems the
11abstract or summary adequate. The accounts shall be properly identified and duly
12authenticated. The commission, where reasonable, may approve or disapprove a
13contract or arrangement without submission of the cost records or accounts.
AB133-SSA1-SA1, s. 2335ya 14Section 2335ya. 196.795 (1) (g) 1. of the statutes is amended to read:
AB133-SSA1-SA1,359,1715 196.795 (1) (g) 1. As a beneficial owner, to take, hold or acquire 5% or more of
16the outstanding voting securities of a public utility, other than a transmission
17company,
with the unconditional power to vote those securities.
AB133-SSA1-SA1, s. 2335yb 18Section 2335yb. 196.795 (1) (g) 2. of the statutes is amended to read:
AB133-SSA1-SA1,359,2319 196.795 (1) (g) 2. To exchange or convert 50% or more of the outstanding voting
20securities of a public utility, other than a municipality or other political subdivision
21or a transmission company, for or into the voting securities of a company organized,
22created, appointed or formed by or at the direction of the public utility or of a
23subsidiary of such company.
AB133-SSA1-SA1, s. 2335yc 24Section 2335yc. 196.795 (1) (h) 3. of the statutes is created to read:
AB133-SSA1-SA1,359,2525 196.795 (1) (h) 3. "Holding company" does not include a transmission company.
AB133-SSA1-SA1, s. 2335yd
1Section 2335yd. 196.795 (1) (p) of the statutes is created to read:
AB133-SSA1-SA1,360,32 196.795 (1) (p) "Transmission company" has the meaning given in s. 196.485
3(1) (ge).
AB133-SSA1-SA1, s. 2335ye 4Section 2335ye. 196.795 (5) (i) 1. of the statutes is amended to read:
AB133-SSA1-SA1,360,85 196.795 (5) (i) 1. Shall consider the public utility affiliate as a wholly
6independent corporation and shall impute a capital structure to the public utility
7affiliate and establish a cost of capital for the public utility affiliate on a stand-alone
8basis
;
AB133-SSA1-SA1, s. 2335yf 9Section 2335yf. 196.795 (5) (p) 1., 2., 3. and 4. of the statutes are renumbered
10196.795 (6m) (b) 1., 2., 3. and 4.
AB133-SSA1-SA1, s. 2335yg 11Section 2335yg. 196.795 (5) (pm) 1. (intro.) of the statutes is repealed.
AB133-SSA1-SA1, s. 2335yh 12Section 2335yh. 196.795 (5) (pm) 1. a. of the statutes is renumbered 196.795
13(6m) (a) 3.
AB133-SSA1-SA1, s. 2335yi 14Section 2335yi. 196.795 (5) (pm) 1. b. of the statutes is renumbered 196.795
15(6m) (a) 5.
AB133-SSA1-SA1, s. 2335yj 16Section 2335yj. 196.795 (5) (pm) 1. c. of the statutes is renumbered 196.795
17(6m) (a) 6.
AB133-SSA1-SA1, s. 2335yk 18Section 2335yk. 196.795 (5) (pm) 2. of the statutes is renumbered 196.795
19(6m) (c) and amended to read:
AB133-SSA1-SA1,360,2520 196.795 (6m) (c) Wholesale merchant plants. The assets of a wholesale
21merchant plant shall not be included in the sum of the assets of a public utility
22affiliate under par. (p) (b) 1. a., b. or c. and shall not be included in a nonutility
23affiliate's total assets under par. (p) (b) 2. a. if the requirements specified in s. 196.491
24(3m) (a) 1. and 2. are satisfied or if the wholesale merchant plant qualifies for the
25exemption under s. 196.491 (3m) (e).
AB133-SSA1-SA1, s. 2335yL
1Section 2335yL. 196.795 (5) (pm) 3. of the statutes is renumbered 196.795
2(6m) (d) and amended to read:
AB133-SSA1-SA1,361,63 196.795 (6m) (d) Foreign affiliates. The assets of a foreign affiliate shall be
4included in the sum of the assets of a public utility affiliate under par. (p) (b) 1. a.,
5b. or c. and shall not be included in a nonutility affiliate's total assets under par. (p)
6(b) 2. a.
AB133-SSA1-SA1, s. 2335ym 7Section 2335ym. 196.795 (6m) (title) of the statutes is created to read:
AB133-SSA1-SA1,361,88 196.795 (6m) (title) Asset cap.
AB133-SSA1-SA1, s. 2335yn 9Section 2335yn. 196.795 (6m) (a) (intro.) of the statutes is created to read:
AB133-SSA1-SA1,361,1010 196.795 (6m) (a) Definitions. (intro.) In this subsection:
AB133-SSA1-SA1, s. 2335yo 11Section 2335yo. 196.795 (6m) (a) 1. of the statutes is created to read:
AB133-SSA1-SA1,361,1412 196.795 (6m) (a) 1. "Contributor public utility affiliate" means a public utility
13affiliate that has contributed its transmission facilities to the transmission company
14under s. 196.485 (5) (b).
AB133-SSA1-SA1, s. 2335yp 15Section 2335yp. 196.795 (6m) (a) 2. of the statutes is created to read:
AB133-SSA1-SA1,361,1716 196.795 (6m) (a) 2. "Eligible asset" means an asset of a nonutility affiliate that
17is used for any of the following:
AB133-SSA1-SA1,361,1918 a. Producing, generating, transmitting, delivering, selling or furnishing gas,
19oil, electricity or steam energy.
AB133-SSA1-SA1,361,2120 b. Providing an energy management, conservation or efficiency product or
21service or a demand-side management product or service.
AB133-SSA1-SA1,361,2222 c. Providing an energy customer service, including metering or billing.
AB133-SSA1-SA1,361,2323 d. Recovering or producing energy from waste materials.
AB133-SSA1-SA1,361,2424 e. Processing waste materials.
AB133-SSA1-SA1,362,3
1f. Manufacturing, distributing or selling products for filtration, pumping water
2or other fluids, processing or heating water, handling fluids or other related
3activities.
AB133-SSA1-SA1,362,44 g. Providing a telecommunications service, as defined in s. 196.01 (9m).
AB133-SSA1-SA1, s. 2335yq 5Section 2335yq. 196.795 (6m) (a) 4. of the statutes is created to read:
AB133-SSA1-SA1,362,86 196.795 (6m) (a) 4. "Generation assets" means assets that are classified as
7electric generation assets on the books of account of a public utility, as determined
8by the commission.
AB133-SSA1-SA1, s. 2335yr 9Section 2335yr. 196.795 (6m) (b) (title) of the statutes is created to read:
AB133-SSA1-SA1,362,1010 196.795 (6m) (b) In general.
AB133-SSA1-SA1, s. 2335ys 11Section 2335ys. 196.795 (6m) (e) of the statutes is created to read:
AB133-SSA1-SA1,362,1712 196.795 (6m) (e) Contributor public utility affiliates. 1. The eligible assets of
13a nonutility affiliate in a holding company system that includes each of the
14contributor public utility affiliates in the holding company system shall not be
15included in the sum of the assets of the public utility affiliates under par. (b) 1. a.,
16b. or c. and shall not be included in the nonutility affiliate's total assets under par.
17(b) 2. a.
AB133-SSA1-SA1,362,1918 2. For purposes of subd. 1., all of the assets of a nonutility affiliate shall be
19considered eligible assets if each of the following is satisfied:
AB133-SSA1-SA1,362,2220 a. The bylaws of the nonutility affiliate or a resolution adopted by its board of
21directors specifies that the business of the nonutility affiliate is limited to activities
22involving eligible assets.
AB133-SSA1-SA1,362,2323 b. Substantially all of the assets of the nonutility affiliate are eligible assets.
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