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.
AB133-SSA1-SA1,363,424 3. The net book value of transmission facility assets that a contributor public
25utility affiliate has contributed to a transmission company under s. 196.485 (5) (b)

1shall be included in the sum of the assets of the public utility affiliate under par. (b)
21. a., b. and c. In determining net book value under this subdivision, accumulated
3depreciation shall be calculated as if the contributor public utility affiliate had not
4contributed the assets.
AB133-SSA1-SA1,363,115 4. The net book value of generation assets that a contributor public utility
6affiliate has transferred to a person that is not affiliated with the public utility
7affiliate pursuant to the order of the commission, a court or a federal regulatory
8agency shall be included in the sum of the assets of the public utility affiliate under
9par. (b) 1. a., b. and c. In determining net book value under this subdivision,
10accumulated depreciation shall be calculated as if the contributor public utility
11affiliate had not transferred the assets.
AB133-SSA1-SA1, s. 2335yt 12Section 2335yt. 196.795 (11) (b) of the statutes is amended to read:
AB133-SSA1-SA1,363,2313 196.795 (11) (b) This section shall be deemed to legalize and confirm the
14formation, prior to November 28, 1985, of any holding company, which is not itself
15a public utility, and shall be deemed to legalize and confirm the operations and
16issuances of securities of the holding company, except that nothing in this section
17shall be deemed to prevent the commission from imposing reasonable terms,
18limitations or conditions on any holding company which are consistent with the
19requirements of sub. (5) (pm) (6m) (c) or (d) or which are consistent with and
20necessary to satisfy the requirements of sub. (5) (b) to (o) and (q) to (s) or which relate
21to future investments by the holding company unless the holding company owns,
22operates, manages or controls a telecommunications utility and does not also own,
23operate, manage or control a public utility which is not a telecommunications utility.
AB133-SSA1-SA1, s. 2335yu 24Section 2335yu. 196.795 (11) (c) of the statutes is created to read:
AB133-SSA1-SA1,364,9
1196.795 (11) (c) The commission may not impose upon a holding company the
2formation of which is considered to be legalized and confirmed under par. (b) any
3term, limitation or condition under par. (b) that establishes the sum of the holding
4company's nonutility affiliate assets at less than 25% of the sum of the holding
5company's utility affiliate assets. For purposes of this paragraph, any term,
6limitation or condition on nonutility affiliate assets shall not apply to the ownership,
7operation, management or control of any eligible asset, as defined under sub. (6m)
8(a) 2., or an asset that is used for manufacturing, distributing or selling swimming
9pools or spas.
AB133-SSA1-SA1, s. 2335z 10Section 2335z. 196.807 of the statutes is created to read:
AB133-SSA1-SA1,364,12 11196.807 Energy affiliate and utility employes. (1) Definitions. In this
12section:
AB133-SSA1-SA1,364,1413 (a) "Affiliate or utility" means a nonutility affiliate, a holding company system
14or an electric utility, as defined in s. 196.491 (1) (d).
AB133-SSA1-SA1,364,1715 (b) "Energy unit" means a unit in this state that is engaged in activities related
16to the production, generation, transmission or distribution of electricity, gas or steam
17or the recovery of energy from waste materials.
AB133-SSA1-SA1,364,1818 (c) "Holding company system" has the meaning given in s. 196.795 (1) (i).
AB133-SSA1-SA1,364,1919 (d) "Nonutility affiliate" has the meaning given in s. 196.795 (1) (j).
AB133-SSA1-SA1,364,2020 (e) "Public utility affiliate" has the meaning given in s. 196.795 (1) (L).
AB133-SSA1-SA1,364,2221 (f) "Sell an energy unit" means to sell, offer by lease, or otherwise transfer
22ownership or control of the energy unit.
AB133-SSA1-SA1,364,2423 (g) "Unit" means a division, department or other operational business unit of
24an affiliate or utility.
AB133-SSA1-SA1,365,5
1(2) Offer of employment. (a) Except as provided in par. (b), a person may not
2sell an energy unit unless the terms of the transfer require the person to which the
3energy unit is transferred to offer employment to the nonsupervisory employes who
4are employed with the energy unit immediately prior to the transfer and who are
5necessary for the operation and maintenance of the energy unit.
AB133-SSA1-SA1,365,96 (b) A public utility affiliate may not sell an energy unit to a nonutility affiliate
7in the same holding company system unless the terms of the transfer require the
8nonutility affiliate to offer employment to all of the nonsupervisory employes who are
9employed with the energy unit immediately prior to the transfer.
AB133-SSA1-SA1,365,12 10(3) Employment terms and conditions. (a) Except as provided in par. (b), the
11employment that is offered under sub. (2) shall satisfy each of the following during
12the 30-month period beginning immediately after the transfer:
AB133-SSA1-SA1,365,1413 1. Wage rates shall be no less than the wage rates in effect immediately prior
14to the transfer.
AB133-SSA1-SA1,365,1615 2. Fringe benefits shall be substantially equivalent to the fringe benefits in
16effect immediately prior to the transfer.
AB133-SSA1-SA1,365,1917 3. Terms and conditions of employment, other than wage rates and fringe
18benefits, shall be substantially equivalent to the terms and conditions in effect
19immediately prior to the transfer.
AB133-SSA1-SA1,365,2120 (b) A collective bargaining agreement may modify or waive a requirement
21specified in par. (a).
AB133-SSA1-SA1,365,24 22(4) Commission approval. Except for a cooperative association, as defined in
23s. 196.491 (1) (bm), no person may sell an energy unit unless the commission
24determines that the person has satisfied subs. (2) and (3).".
AB133-SSA1-SA1,366,1
1974. Page 1186, line 9: after that line insert:
AB133-SSA1-SA1,366,3 2" Section 2337m. Subchapter II of chapter 196 [precedes 196.991] of the
3statutes is created to read:
AB133-SSA1-SA1,366,44 Chapter 196
AB133-SSA1-SA1,366,65 Subchapter II
6 Hospital rate price caps
AB133-SSA1-SA1,366,7 7196.991 Definitions. In this subchapter:
AB133-SSA1-SA1,366,8 8(1) "Commission" means the public service commission.
AB133-SSA1-SA1,366,9 9(2) "Consumer price index" has the meaning given in s. 16.004 (8) (e) 1.
AB133-SSA1-SA1,366,11 10(3) "Hospital" has the meaning given in s. 50.33 (2), except that "hospital" does
11not include a center for the developmentally disabled, as defined in s. 51.01 (3).
AB133-SSA1-SA1,366,14 12(3m) "Price cap" means the maximum rate that may be charged for a service
13and includes any allowable increases in the maximum rate that are based on
14increases in the consumer price index.
AB133-SSA1-SA1,366,17 15(4) "Rates" means individual charges of a hospital for the services that it
16provides or, if authorized under s. 196.993, the aggregate charges based on case mix
17measurements.
AB133-SSA1-SA1,366,20 18196.992 Hospital rate price caps. (1) The commission shall promulgate
19rules that establish price caps for hospital rates. The commission shall consider each
20of the following in promulgating rules under this subsection:
AB133-SSA1-SA1,366,2221 (a) The need to reduce the rate of hospital cost increases while preserving the
22quality of health care in all parts of the state.
AB133-SSA1-SA1,366,2423 (b) A variety of cost-related trend factors based on nationally or regionally
24recognized economic models.
AB133-SSA1-SA1,367,1
1(c) The past budget and rate experiences of hospitals in this state.
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