AB389-ASA2,56,22 d. Recovering or producing energy from waste materials.
AB389-ASA2,56,33 e. Processing waste materials.
AB389-ASA2,56,64 f. Manufacturing, distributing or selling products for filtration, pumping water
5or other fluids, processing or heating water, handling fluids or other related
6activities.
AB389-ASA2,56,77 g. Providing a telecommunications service, as defined in s. 196.01 (9m).
AB389-ASA2, s. 85 8Section 85. 196.795 (6m) (a) 4. of the statutes is created to read:
AB389-ASA2,56,119 196.795 (6m) (a) 4. "Generation assets" means assets that are classified as
10electric generation assets on the books of account of a public utility, as determined
11by the commission.
AB389-ASA2, s. 86 12Section 86. 196.795 (6m) (b) (title) of the statutes is created to read:
AB389-ASA2,56,1313 196.795 (6m) (b) In general.
AB389-ASA2, s. 87 14Section 87. 196.795 (6m) (e) of the statutes is created to read:
AB389-ASA2,56,2015 196.795 (6m) (e) Contributor public utility affiliates. 1. The eligible assets of
16a nonutility affiliate in a holding company system that includes each of the
17contributor public utility affiliates in the holding company system shall not be
18included in the sum of the assets of the public utility affiliates under par. (b) 1. a.,
19b. or c. and shall not be included in the nonutility affiliate's total assets under par.
20(b) 2. a.
AB389-ASA2,56,2221 2. For purposes of subd. 1., all of the assets of a nonutility affiliate shall be
22considered eligible assets if each of the following is satisfied:
AB389-ASA2,56,2523 a. The bylaws of the nonutility affiliate or a resolution adopted by its board of
24directors specifies that the business of the nonutility affiliate is limited to activities
25involving eligible assets.
AB389-ASA2,57,1
1b. Substantially all of the assets of the nonutility affiliate are eligible assets.
AB389-ASA2,57,72 3. The net book value of transmission facility assets that a contributor public
3utility affiliate has contributed to a transmission company under s. 196.485 (5) (b)
4shall be included in the sum of the assets of the public utility affiliate under par. (b)
51. a., b. and c. In determining net book value under this subdivision, accumulated
6depreciation shall be calculated as if the contributor public utility affiliate had not
7contributed the assets.
AB389-ASA2,57,148 4. The net book value of generation assets that a contributor public utility
9affiliate has transferred to a person that is not affiliated with the public utility
10affiliate pursuant to the order of the commission, a court or a federal regulatory
11agency shall be included in the sum of the assets of the public utility affiliate under
12par. (b) 1. a., b. and c. In determining net book value under this subdivision,
13accumulated depreciation shall be calculated as if the contributor public utility
14affiliate had not transferred the assets.
AB389-ASA2, s. 88 15Section 88. 196.795 (11) (b) of the statutes is amended to read:
AB389-ASA2,58,216 196.795 (11) (b) This section shall be deemed to legalize and confirm the
17formation, prior to November 28, 1985, of any holding company, which is not itself
18a public utility, and shall be deemed to legalize and confirm the operations and
19issuances of securities of the holding company, except that nothing in this section
20shall be deemed to prevent the commission from imposing reasonable terms,
21limitations or conditions on any holding company which are consistent with the
22requirements of sub. (5) (pm) (6m) (c) or (d) or which are consistent with and
23necessary to satisfy the requirements of sub. (5) (b) to (o) and (q) to (s) or which relate
24to future investments by the holding company unless the holding company owns,

1operates, manages or controls a telecommunications utility and does not also own,
2operate, manage or control a public utility which is not a telecommunications utility.
AB389-ASA2, s. 89 3Section 89. 196.795 (11) (c) of the statutes is created to read:
AB389-ASA2,58,124 196.795 (11) (c) The commission may not impose upon a holding company the
5formation of which is considered to be legalized and confirmed under par. (b) any
6term, limitation or condition under par. (b) that establishes the sum of the holding
7company's nonutility affiliate assets at less than 25% of the sum of the holding
8company's utility affiliate assets. For purposes of this paragraph, any term,
9limitation or condition on nonutility affiliate assets shall not apply to the ownership,
10operation, management or control of any eligible asset, as defined under sub. (6m)
11(a) 2., or an asset that is used for manufacturing, distributing or selling swimming
12pools or spas.
AB389-ASA2, s. 90 13Section 90. 196.796 of the statutes is created to read:
AB389-ASA2,58,14 14196.796 Real estate activities. (1) In this section:
AB389-ASA2,58,1715 (a) "Brownfields facility or site" means any abandoned, idle or underused
16industrial or commercial facility or site, the use, expansion or redevelopment of
17which is adversely affected by actual environmental contamination.
AB389-ASA2,58,2018 (b) 1. "Commercial construction" means the act of building any structure, or
19that part of any structure, that is not used as a home, residence or sleeping place by
20one or more persons maintaining a common household to the exclusion of all others.
AB389-ASA2,58,2121 2. "Commercial construction" does not include any of the following:
AB389-ASA2,58,2522 a. Any repair, maintenance, installation or construction of a structure owned
23or used by or for a public utility, or for a customer of a public utility, if the repair,
24maintenance, installation or construction is related to furnishing heat, light, water
25or power to the customer.
AB389-ASA2,59,2
1b. Any construction related to the evaluation, control or remediation of
2hazardous substances; solid, liquid or gaseous wastes; soils; air; or water.
AB389-ASA2,59,43 c. Any construction performed in order to comply with federal, state or local
4environmental laws, regulations, orders or rules.
AB389-ASA2,59,75 (c) "Economic development" means development that is designed to promote
6job growth or retention, expand the property tax base or improve the overall
7economic vitality of a municipality, as defined in s. 30.01 (4), or region.
AB389-ASA2,59,108 (d) "Engage" means to actively participate in the daily operations or daily
9business decisions of an entity. "Engage" does not include taking an action necessary
10to protect an ownership interest in an entity.
AB389-ASA2,59,1111 (dg) "Entity" has the meaning given in s. 180.0103 (8).
AB389-ASA2,59,1212 (dr) "Financial support" includes investments, loans and grants.
AB389-ASA2,59,1313 (e) "Holding company system" has the meaning given in s. 196.795 (1) (i).
AB389-ASA2,59,2014 (f) "Improvements" means any valuable addition made to land, including
15excavations, gradings, foundations, structures, buildings, streets, parking lots,
16sidewalks, sewers, septic systems and drainage facilities. "Improvements" does not
17include any repair, maintenance, installation or construction of structures or
18facilities owned or used by or for a public utility, or by or for a customer of a public
19utility, if the repair, maintenance, installation or construction is related to furnishing
20heat, light, water or power to the customer.
AB389-ASA2,59,2221 (g) "Nonutility affiliate" means a subsidiary of a public utility or a company in
22a holding company system that is not a public utility.
AB389-ASA2,60,223 (h) "Property management" means any activity associated with the care or
24maintenance of land or improvements, including business planning and budgeting,
25accounting, lease administration, tenant relations and retention, security,

1maintenance of common areas, rent collections, financial reporting, service contract
2administration and inspections.
AB389-ASA2,60,103 (hm) "Public utility" means every corporation, company, individual or
4association and their lessees, trustees or receivers appointed by any court or state
5or federal agency, that may own, operate, manage or control all or any part of a plant
6or equipment, within the state, for the production, transmission, delivery or
7furnishing of electricity directly to or for the public, except that "public utility" does
8not include any municipal utility or municipal electric company, as defined in s.
966.073 (3) (d), or any cooperative association organized under ch. 185 for the purpose
10of producing or furnishing heat, light, power or water to its members only.
AB389-ASA2,60,1111 (i) "Real estate practice" has the meaning given in s. 452.01 (6),
AB389-ASA2,60,1412 (j) "Residential construction" means the act of building any structure, or that
13part of any structure that is used as a home, residence or sleeping place by one or
14more persons maintaining a common household to the exclusion of all others.
AB389-ASA2,60,1715 (k) "Residential real estate development" means the act of dividing or
16subdividing any parcel of land for residential construction or making improvements
17to facilitate or allow residential construction.
AB389-ASA2,60,1918 (L) "Third party" means any person other than a public utility or nonutility
19affiliate.
AB389-ASA2,60,21 20(2) Prohibited activities. Except as provided in sub. (4), a public utility or
21nonutility affiliate may not do any of the following in this state:
AB389-ASA2,60,2222 (a) Engage in real estate practice.
AB389-ASA2,60,2323 (b) Engage in residential real estate development.
AB389-ASA2,60,2424 (c) Engage in property management for a 3rd party.
AB389-ASA2,60,2525 (d) Engage in residential or commercial construction.
AB389-ASA2,61,4
1(e) Directly or indirectly own in any chain of successive ownership 50% or more
2of the ownership interest of an entity that engages in property management for a 3rd
3party, real estate practice, residential real estate development or residential or
4commercial construction.
AB389-ASA2,61,6 5(3) Permitted activities. (a) Subsection (2) does not prohibit a public utility
6or nonutility affiliate from doing any of the following:
AB389-ASA2,61,107 1. Repairing, maintaining, installing or constructing a structure that is owned
8or used by or for a public utility or nonutility affiliate, or for a customer of a public
9utility if the repair, maintenance, installation or construction is related to furnishing
10heat, light, water or power to the customer.
AB389-ASA2,61,1311 2. Engaging in construction that is specifically related to the evaluation,
12control or remediation of hazardous substances; solid, liquid or gaseous wastes; soils;
13air; or water.
AB389-ASA2,61,1514 3. Engaging in construction that is performed in order to comply with federal,
15state or local environmental laws, regulations, orders or rules.
AB389-ASA2,61,1716 4. Consulting or making other financial or business arrangements with one or
17more 3rd parties who will engage in commercial construction.
AB389-ASA2,61,2418 5. Consulting or making other financial or business arrangements with one or
19more 3rd parties who will engage in residential construction or residential real
20estate development, except that if a public utility or nonutility affiliate contracts for
21the development of more than one residential construction project or residential real
22estate development, the public utility or nonutility affiliate may not enter into an
23exclusive arrangement with a 3rd party for all such residential construction or
24residential real estate development.
AB389-ASA2,62,3
16. Acquiring or disposing of property or interests in property if the acquisition
2or disposition is related to the operation of a public utility and the acquisition or
3disposition satisfies one of the following:
AB389-ASA2,62,54 a. The acquisition or disposition is conducted under a contract with a 3rd party
5that is engaged in real estate practice.
AB389-ASA2,62,76 b. The acquisition or disposition is conducted by an individual engaged in real
7estate practice or employed by a public utility.
AB389-ASA2,62,108 (b) Subsection (2) does not prohibit a public utility that is not subject to the
9requirements of s. 196.795, or the nonutility subsidiary of such a public utility, from
10doing any of the following:
AB389-ASA2,62,1511 1. Engaging in commercial or residential real estate development or
12construction on property owned or acquired by the public utility or nonutility
13subsidiary for a public utility purpose if the total annual revenues from the
14development or construction do not exceed 3% of the total operating revenues of the
15public utility in any year.
AB389-ASA2,62,2016 2. Providing financial support for the purpose of economic development to 3rd
17parties that are engaged in an activity specified in sub. (2) (a) to (d). The public utility
18or nonutility subsidiary may profit directly from that activity only through receipt
19of profits that are incidental to the economic development project or interest earned
20on a loan.
AB389-ASA2,63,3 21(4) Exceptions. (a) A nonutility affiliate that has engaged in residential
22construction prior to, or is engaged in residential construction on, the effective date
23of this paragraph .... [revisor inserts date], may directly or indirectly own in any
24chain of successive ownership 50% or more of the ownership interest of an entity that
25hires a 3rd party to engage in residential construction or commercial construction

1that is incidental to residential construction, except that the nonutility affiliate may
2not actively participate in the daily operations or daily business decisions of the
3entity.
AB389-ASA2,63,54 (b) A public utility or nonutility affiliate may engage in residential real estate
5development at a brownfields facility or site.
AB389-ASA2,63,10 6(5) Private cause of action. Any public utility or nonutility affiliate that does,
7causes or permits to be done any action prohibited under this section or fails to
8comply with any requirement specified in this section is liable to any person injured
9thereby in the amount of damages sustained in consequence of the prohibited action
10or failure to comply.
AB389-ASA2,63,12 11(6) Construction. This section shall be strictly construed to limit the
12permitted activities of a public utility and a nonutility affiliate.
AB389-ASA2, s. 91 13Section 91. 196.807 of the statutes is created to read:
AB389-ASA2,63,15 14196.807 Energy affiliate and utility employes. (1) Definitions. In this
15section:
AB389-ASA2,63,1716 (a) "Affiliate or utility" means a nonutility affiliate, a holding company system
17or an electric utility, as defined in s. 196.491 (1) (d).
AB389-ASA2,63,2018 (b) "Energy unit" means a unit in this state that is engaged in activities related
19to the production, generation, transmission or distribution of electricity, gas or steam
20or the recovery of energy from waste materials.
AB389-ASA2,63,2121 (c) "Holding company system" has the meaning given in s. 196.795 (1) (i).
AB389-ASA2,63,2222 (d) "Nonutility affiliate" has the meaning given in s. 196.795 (1) (j).
AB389-ASA2,63,2323 (e) "Public utility affiliate" has the meaning given in s. 196.795 (1) (L).
AB389-ASA2,63,2524 (f) "Sell an energy unit" means to sell, offer by lease, or otherwise transfer
25ownership or control of the energy unit.
AB389-ASA2,64,2
1(g) "Unit" means a division, department or other operational business unit of
2an affiliate or utility.
AB389-ASA2,64,7 3(2) Offer of employment. (a) Except as provided in par. (b), a person may not
4sell an energy unit unless the terms of the transfer require the person to which the
5energy unit is transferred to offer employment to the nonsupervisory employes who
6are employed with the energy unit immediately prior to the transfer and who are
7necessary for the operation and maintenance of the energy unit.
AB389-ASA2,64,118 (b) A public utility affiliate may not sell an energy unit to a nonutility affiliate
9in the same holding company system unless the terms of the transfer require the
10nonutility affiliate to offer employment to all of the nonsupervisory employes who are
11employed with the energy unit immediately prior to the transfer.
AB389-ASA2,64,14 12(3) Employment terms and conditions. (a) Except as provided in par. (b), the
13employment that is offered under sub. (2) shall satisfy each of the following during
14the 30-month period beginning immediately after the transfer:
AB389-ASA2,64,1615 1. Wage rates shall be no less than the wage rates in effect immediately prior
16to the transfer.
AB389-ASA2,64,1817 2. Fringe benefits shall be substantially equivalent to the fringe benefits in
18effect immediately prior to the transfer.
AB389-ASA2,64,2119 3. Terms and conditions of employment, other than wage rates and fringe
20benefits, shall be substantially equivalent to the terms and conditions in effect
21immediately prior to the transfer.
AB389-ASA2,64,2322 (b) A collective bargaining agreement may modify or waive a requirement
23specified in par. (a).
AB389-ASA2,65,3
1(4) Commission approval. Except for a cooperative association, as defined in
2s. 196.491 (1) (bm), no person may sell an energy unit unless the commission
3determines that the person has satisfied subs. (2) and (3).
AB389-ASA2, s. 92 4Section 92. 200.01 (2) of the statutes is amended to read:
AB389-ASA2,65,225 200.01 (2) "Public service corporation" means and embraces every corporation,
6except municipalities and other political subdivisions, which is a public utility as
7defined in s. 196.01, and every corporation which is a railroad as defined in s. 195.02,
8but shall not include a public utility corporation receiving an annual gross revenue
9of less than $1,000 for the calendar year next preceding the issuance of any securities
10by it. "Public service corporation" includes a holding company, as defined under s.
11196.795 (1) (h), which is a public utility, as defined under s. 196.01 (5). "Public service
12corporation" does not include a telecommunications utility, as defined in s. 196.01
13(10). "Public service corporation" does not include any other holding company unless
14the holding company was formed after November 28, 1985, and unless the
15commission has determined, under s. 196.795 (7) (a), that each nonutility affiliate,
16as defined under s. 196.795 (1) (j), does not and cannot reasonably be expected to do
17at least one of the items specified in s. 196.795 (7) (a). "Public service corporation"
18does not include a company, as defined in s. 196.795 (1) (f), which owns, operates,
19manages or controls a telecommunications utility, as defined in s. 196.01 (10), unless
20such company also owns, operates, manages or controls a public utility which is not
21a telecommunications utility. "Public service corporation" does not include a
22transmission company, as defined in s. 196.485 (1) (ge).
AB389-ASA2, s. 93 23Section 93. 285.48 of the statutes is created to read:
AB389-ASA2,66,8 24285.48 Nitrogen oxide emissions from certain electric generation
25facilities.
(1) In establishing nitrogen oxide emission reductions for the control of

1atmospheric ozone in another state pursuant to a call for a state implementation plan
2issued prior to the effective date of this subsection .... [revisor inserts date], the
3department may not, in an implementation plan under s. 285.11 (6), by rule or
4through the adoption of control strategies, regulate nitrogen oxide emissions from
5electric generation facilities that are located in Ashland, Barron, Bayfield, Buffalo,
6Burnett, Chippewa, Clark, Douglas, Dunn, Eau Claire, Iron, Jackson, La Crosse,
7Monroe, Pepin, Pierce, Polk, Price, Rusk, Sawyer, St. Croix, Taylor, Trempealeau,
8Vernon or Washburn county.
AB389-ASA2,66,12 9(2) The department may not, based solely on the prohibition under sub. (1),
10require more stringent nitrogen oxide emission reductions for any electric utility, as
11defined in s. 196.491 (1) (d), or large industrial core source in this state that is
12identified by the federal environmental protection agency.
AB389-ASA2, s. 94 13Section 94. Nonstatutory provisions.
AB389-ASA2,66,1714 (1) Initial appointments to council on utility public benefits.
15Notwithstanding section 15.107 (17) (intro.) of the statutes, as created by this act,
16the initial members of the council on utility public benefits shall be appointed for the
17following terms:
AB389-ASA2,66,1918 (a) One of the members under section 15.107 (17) (a), (b) and (d) of the statutes,
19as created by this act, for terms expiring on July 1, 2001.
AB389-ASA2,66,2220 (b) One of the members under section 15.107 (17) (a) of the statutes, as created
21by this act, and the members under section 15.107 (17) (c), (e) and (f) of the statutes,
22as created by this act, for terms expiring on July 1, 2002.
AB389-ASA2,66,2523 (c) One of the members under section 15.107 (17) (b) and (d) of the statutes, as
24created by this act, and the members under section 15.107 (17) (g) and (h) of the
25statutes, as created by this act, for terms expiring on July 1, 2003.
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