Amendment SA1-SSA1-AB133

AB133-SSA1-SA1, s. 2335wL Section 2335wL. 196.494 (3) of the statutes is amended to read:

AB133-SSA1-SA1,357,20 196.494 (3) No later than December 31, 2004, the The commission may shall, under this subsection, issue an order requiring an electric utility to construct or procure, on a competitive basis, the construction of transmission facilities specified by the commission in its order if the commission determines that, based on the results of the study under sub. (2), such construction is necessary to relieve a constraint on a transmission system and the construction will materially benefit the customers of the electric utility or other electric utilities or of an independent system operator, as defined in s. 196.485 (1) (d), or independent transmission owner, as defined in s. 196.485 (1) (dm).

AB133-SSA1-SA1, s. 2335wn Section 2335wn. 196.494 (5) of the statutes is created to read:

AB133-SSA1-SA1,358,2 196.494 (5) The governor may, on behalf of this state, enter into an interstate compact that establishes a joint process for the states in the upper midwest region of the United States to determine the need for and siting of regional electric transmission facilities that may affect electric service in this state. The governor may not enter into a compact under this subsection unless the compact includes requirements and procedures for establishing each of the following:

AB133-SSA1-SA1,358,4 (a) Compliance with each state's environmental and siting standards for transmission facilities.

AB133-SSA1-SA1,358,5 (b) A regional need determination for transmission facilities.

AB133-SSA1-SA1,358,7 (c) A mechanism for resolving conflicts between the states regarding the siting of transmission facilities.

AB133-SSA1-SA1, s. 2335wp Section 2335wp. 196.52 (3) (a) of the statutes is amended to read:

AB133-SSA1-SA1,359,13 196.52 (3) (a) In this subsection, "contract or arrangement" means a contract or arrangement providing for the furnishing of management, supervisory, construction, engineering, accounting, legal, financial 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, but "contract or arrangement" does not include a contract or arrangement under which a transmission utility, as defined in s. 196.485 (1) (i), sells or transfers securities, as defined in s. 196.485 (1) (fe), that have been issued by a transmission company, as defined in s. 196.485 (1) (ge). 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 approve a contract or arrangement made or entered into after June 7, 1931, only if it shall clearly appear and be established upon investigation that it is reasonable and consistent with the public interest. 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 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.

AB133-SSA1-SA1, s. 2335ya Section 2335ya. 196.795 (1) (g) 1. of the statutes is amended to read:

AB133-SSA1-SA1,359,17 196.795 (1) (g) 1. As a beneficial owner, to take, hold or acquire 5% or more of the outstanding voting securities of a public utility, other than a transmission company, with the unconditional power to vote those securities.

AB133-SSA1-SA1, s. 2335yb Section 2335yb. 196.795 (1) (g) 2. of the statutes is amended to read:

AB133-SSA1-SA1,359,23 196.795 (1) (g) 2. To exchange or convert 50% or more of the outstanding voting securities of a public utility, other than a municipality or other political subdivision or a transmission company, for or into the voting securities of a company organized, created, appointed or formed by or at the direction of the public utility or of a subsidiary of such company.

AB133-SSA1-SA1, s. 2335yc Section 2335yc. 196.795 (1) (h) 3. of the statutes is created to read:

AB133-SSA1-SA1,359,25 196.795 (1) (h) 3. "Holding company" does not include a transmission company.

AB133-SSA1-SA1, s. 2335yd Section 2335yd. 196.795 (1) (p) of the statutes is created to read:

AB133-SSA1-SA1,360,3 196.795 (1) (p) "Transmission company" has the meaning given in s. 196.485 (1) (ge).

AB133-SSA1-SA1, s. 2335ye Section 2335ye. 196.795 (5) (i) 1. of the statutes is amended to read:

AB133-SSA1-SA1,360,8 196.795 (5) (i) 1. Shall consider the public utility affiliate as a wholly independent corporation and shall impute a capital structure to the public utility affiliate and establish a cost of capital for the public utility affiliate on a stand-alone basis;

AB133-SSA1-SA1, s. 2335yf Section 2335yf. 196.795 (5) (p) 1., 2., 3. and 4. of the statutes are renumbered 196.795 (6m) (b) 1., 2., 3. and 4.

AB133-SSA1-SA1, s. 2335yg Section 2335yg. 196.795 (5) (pm) 1. (intro.) of the statutes is repealed.

AB133-SSA1-SA1, s. 2335yh Section 2335yh. 196.795 (5) (pm) 1. a. of the statutes is renumbered 196.795 (6m) (a) 3.

AB133-SSA1-SA1, s. 2335yi Section 2335yi. 196.795 (5) (pm) 1. b. of the statutes is renumbered 196.795 (6m) (a) 5.

AB133-SSA1-SA1, s. 2335yj Section 2335yj. 196.795 (5) (pm) 1. c. of the statutes is renumbered 196.795 (6m) (a) 6.

AB133-SSA1-SA1, s. 2335yk Section 2335yk. 196.795 (5) (pm) 2. of the statutes is renumbered 196.795 (6m) (c) and amended to read:

AB133-SSA1-SA1,360,25 196.795 (6m) (c) Wholesale merchant plants. The assets of a wholesale merchant plant shall not be included in the sum of the assets of a public utility affiliate under par. (p) (b) 1. a., b. or c. and shall not be included in a nonutility affiliate's total assets under par. (p) (b) 2. a. if the requirements specified in s. 196.491 (3m) (a) 1. and 2. are satisfied or if the wholesale merchant plant qualifies for the exemption under s. 196.491 (3m) (e).

AB133-SSA1-SA1, s. 2335yL Section 2335yL. 196.795 (5) (pm) 3. of the statutes is renumbered 196.795 (6m) (d) and amended to read:

AB133-SSA1-SA1,361,6 196.795 (6m) (d) Foreign affiliates. The assets of a foreign affiliate shall be included in the sum of the assets of a public utility affiliate under par. (p) (b) 1. a., b. or c. and shall not be included in a nonutility affiliate's total assets under par. (p) (b) 2. a.

AB133-SSA1-SA1, s. 2335ym Section 2335ym. 196.795 (6m) (title) of the statutes is created to read:

AB133-SSA1-SA1,361,8 196.795 (6m) (title) Asset cap.

AB133-SSA1-SA1, s. 2335yn Section 2335yn. 196.795 (6m) (a) (intro.) of the statutes is created to read:

AB133-SSA1-SA1,361,10 196.795 (6m) (a) Definitions. (intro.) In this subsection:

AB133-SSA1-SA1, s. 2335yo Section 2335yo. 196.795 (6m) (a) 1. of the statutes is created to read:

AB133-SSA1-SA1,361,14 196.795 (6m) (a) 1. "Contributor public utility affiliate" means a public utility affiliate that has contributed its transmission facilities to the transmission company under s. 196.485 (5) (b).

AB133-SSA1-SA1, s. 2335yp Section 2335yp. 196.795 (6m) (a) 2. of the statutes is created to read:

AB133-SSA1-SA1,361,17 196.795 (6m) (a) 2. "Eligible asset" means an asset of a nonutility affiliate that is used for any of the following:

AB133-SSA1-SA1,361,19 a. Producing, generating, transmitting, delivering, selling or furnishing gas, oil, electricity or steam energy.

AB133-SSA1-SA1,361,21 b. Providing an energy management, conservation or efficiency product or service or a demand-side management product or service.

AB133-SSA1-SA1,361,22 c. Providing an energy customer service, including metering or billing.

AB133-SSA1-SA1,361,23 d. Recovering or producing energy from waste materials.

AB133-SSA1-SA1,361,24 e. Processing waste materials.

AB133-SSA1-SA1,362,3 f. Manufacturing, distributing or selling products for filtration, pumping water or other fluids, processing or heating water, handling fluids or other related activities.

AB133-SSA1-SA1,362,4 g. Providing a telecommunications service, as defined in s. 196.01 (9m).

AB133-SSA1-SA1, s. 2335yq Section 2335yq. 196.795 (6m) (a) 4. of the statutes is created to read:

AB133-SSA1-SA1,362,8 196.795 (6m) (a) 4. "Generation assets" means assets that are classified as electric generation assets on the books of account of a public utility, as determined by the commission.

AB133-SSA1-SA1, s. 2335yr Section 2335yr. 196.795 (6m) (b) (title) of the statutes is created to read:

AB133-SSA1-SA1,362,10 196.795 (6m) (b) In general.

AB133-SSA1-SA1, s. 2335ys Section 2335ys. 196.795 (6m) (e) of the statutes is created to read:

AB133-SSA1-SA1,362,17 196.795 (6m) (e) Contributor public utility affiliates. 1. The eligible assets of a nonutility affiliate in a holding company system that includes each of the contributor public utility affiliates in the holding company system shall not be included in the sum of the assets of the public utility affiliates under par. (b) 1. a., b. or c. and shall not be included in the nonutility affiliate's total assets under par. (b) 2. a.

AB133-SSA1-SA1,362,19 2. For purposes of subd. 1., all of the assets of a nonutility affiliate shall be considered eligible assets if each of the following is satisfied:

AB133-SSA1-SA1,362,22 a. The bylaws of the nonutility affiliate or a resolution adopted by its board of directors specifies that the business of the nonutility affiliate is limited to activities involving eligible assets.

AB133-SSA1-SA1,362,23 b. Substantially all of the assets of the nonutility affiliate are eligible assets.

AB133-SSA1-SA1,363,4 3. The net book value of transmission facility assets that a contributor public utility affiliate has contributed to a transmission company under s. 196.485 (5) (b) shall be included in the sum of the assets of the public utility affiliate under par. (b) 1. a., b. and c. In determining net book value under this subdivision, accumulated depreciation shall be calculated as if the contributor public utility affiliate had not contributed the assets.

AB133-SSA1-SA1,363,11 4. The net book value of generation assets that a contributor public utility affiliate has transferred to a person that is not affiliated with the public utility affiliate pursuant to the order of the commission, a court or a federal regulatory agency shall be included in the sum of the assets of the public utility affiliate under par. (b) 1. a., b. and c. In determining net book value under this subdivision, accumulated depreciation shall be calculated as if the contributor public utility affiliate had not transferred the assets.

AB133-SSA1-SA1, s. 2335yt Section 2335yt. 196.795 (11) (b) of the statutes is amended to read:

AB133-SSA1-SA1,363,23 196.795 (11) (b) This section shall be deemed to legalize and confirm the formation, prior to November 28, 1985, of any holding company, which is not itself a public utility, and shall be deemed to legalize and confirm the operations and issuances of securities of the holding company, except that nothing in this section shall be deemed to prevent the commission from imposing reasonable terms, limitations or conditions on any holding company which are consistent with the requirements of sub. (5) (pm) (6m) (c) or (d) or which are consistent with and necessary to satisfy the requirements of sub. (5) (b) to (o) and (q) to (s) or which relate to future investments by the holding company unless the holding company owns, operates, manages or controls a telecommunications utility and does not also own, operate, manage or control a public utility which is not a telecommunications utility.

AB133-SSA1-SA1, s. 2335yu Section 2335yu. 196.795 (11) (c) of the statutes is created to read:

AB133-SSA1-SA1,364,9 196.795 (11) (c) The commission may not impose upon a holding company the formation of which is considered to be legalized and confirmed under par. (b) any term, limitation or condition under par. (b) that establishes the sum of the holding company's nonutility affiliate assets at less than 25% of the sum of the holding company's utility affiliate assets. For purposes of this paragraph, any term, limitation or condition on nonutility affiliate assets shall not apply to the ownership, operation, management or control of any eligible asset, as defined under sub. (6m) (a) 2., or an asset that is used for manufacturing, distributing or selling swimming pools or spas.

AB133-SSA1-SA1, s. 2335z Section 2335z. 196.807 of the statutes is created to read:

AB133-SSA1-SA1,364,12 196.807 Energy affiliate and utility employes. (1) Definitions. In this section:

AB133-SSA1-SA1,364,14 (a) "Affiliate or utility" means a nonutility affiliate, a holding company system or an electric utility, as defined in s. 196.491 (1) (d).

AB133-SSA1-SA1,364,17 (b) "Energy unit" means a unit in this state that is engaged in activities related to the production, generation, transmission or distribution of electricity, gas or steam or the recovery of energy from waste materials.

AB133-SSA1-SA1,364,18 (c) "Holding company system" has the meaning given in s. 196.795 (1) (i).

AB133-SSA1-SA1,364,19 (d) "Nonutility affiliate" has the meaning given in s. 196.795 (1) (j).

AB133-SSA1-SA1,364,20 (e) "Public utility affiliate" has the meaning given in s. 196.795 (1) (L).

AB133-SSA1-SA1,364,22 (f) "Sell an energy unit" means to sell, offer by lease, or otherwise transfer ownership or control of the energy unit.

AB133-SSA1-SA1,364,24 (g) "Unit" means a division, department or other operational business unit of an affiliate or utility.

AB133-SSA1-SA1,365,5 (2) Offer of employment. (a) Except as provided in par. (b), a person may not sell an energy unit unless the terms of the transfer require the person to which the energy unit is transferred to offer employment to the nonsupervisory employes who are employed with the energy unit immediately prior to the transfer and who are necessary for the operation and maintenance of the energy unit.

AB133-SSA1-SA1,365,9 (b) A public utility affiliate may not sell an energy unit to a nonutility affiliate in the same holding company system unless the terms of the transfer require the nonutility affiliate to offer employment to all of the nonsupervisory employes who are employed with the energy unit immediately prior to the transfer.

AB133-SSA1-SA1,365,12 (3) Employment terms and conditions. (a) Except as provided in par. (b), the employment that is offered under sub. (2) shall satisfy each of the following during the 30-month period beginning immediately after the transfer:

AB133-SSA1-SA1,365,14 1. Wage rates shall be no less than the wage rates in effect immediately prior to the transfer.

AB133-SSA1-SA1,365,16 2. Fringe benefits shall be substantially equivalent to the fringe benefits in effect immediately prior to the transfer.

AB133-SSA1-SA1,365,19 3. Terms and conditions of employment, other than wage rates and fringe benefits, shall be substantially equivalent to the terms and conditions in effect immediately prior to the transfer.

AB133-SSA1-SA1,365,21 (b) A collective bargaining agreement may modify or waive a requirement specified in par. (a).

AB133-SSA1-SA1,365,24 (4) Commission approval. Except for a cooperative association, as defined in s. 196.491 (1) (bm), no person may sell an energy unit unless the commission determines that the person has satisfied subs. (2) and (3).".

AB133-SSA1-SA1,366,1 974. Page 1186, line 9: after that line insert:

AB133-SSA1-SA1,366,3 " Section 2337m. Subchapter II of chapter 196 [precedes 196.991] of the statutes is created to read:

AB133-SSA1-SA1,366,4 Chapter 196

AB133-SSA1-SA1,366,6 Subchapter II Hospital rate price caps

AB133-SSA1-SA1,366,7 196.991 Definitions. In this subchapter:

AB133-SSA1-SA1,366,8 (1) "Commission" means the public service commission.

AB133-SSA1-SA1,366,9 (2) "Consumer price index" has the meaning given in s. 16.004 (8) (e) 1.

AB133-SSA1-SA1,366,11 (3) "Hospital" has the meaning given in s. 50.33 (2), except that "hospital" does not include a center for the developmentally disabled, as defined in s. 51.01 (3).

AB133-SSA1-SA1,366,14 (3m) "Price cap" means the maximum rate that may be charged for a service and includes any allowable increases in the maximum rate that are based on increases in the consumer price index.

AB133-SSA1-SA1,366,17 (4) "Rates" means individual charges of a hospital for the services that it provides or, if authorized under s. 196.993, the aggregate charges based on case mix measurements.

AB133-SSA1-SA1,366,20 196.992 Hospital rate price caps. (1) The commission shall promulgate rules that establish price caps for hospital rates. The commission shall consider each of the following in promulgating rules under this subsection:

AB133-SSA1-SA1,366,22 (a) The need to reduce the rate of hospital cost increases while preserving the quality of health care in all parts of the state.

AB133-SSA1-SA1,366,24 (b) A variety of cost-related trend factors based on nationally or regionally recognized economic models.

AB133-SSA1-SA1,367,1 (c) The past budget and rate experiences of hospitals in this state.