SB459-SSA1,20,1612 (d) Transmission facilities. In a proceeding regarding a request by a public
13utility under s. 196.49, 196.491 (3), or 196.80, to acquire, construct, install, or operate
14an electric transmission facility or associated equipment, the commission is not
15required to find that approval of the proposal would implement the policies under s.
161.12 (4).
SB459-SSA1, s. 63 17Section 63. 196.025 (1m) (title) of the statutes is created to read:
SB459-SSA1,20,1818 196.025 (1m) (title) Transmission corridors.
SB459-SSA1, s. 64 19Section 64. 196.025 (2) (title) of the statutes is created to read:
SB459-SSA1,20,2020 196.025 (2) (title) Environmental impacts.
SB459-SSA1, s. 65 21Section 65. 196.025 (2m) (title) of the statutes is created to read:
SB459-SSA1,20,2222 196.025 (2m) (title) Coordination with department of natural resources.
SB459-SSA1, s. 66 23Section 66. 196.025 (3) (title) of the statutes is created to read:
SB459-SSA1,20,2424 196.025 (3) (title) Reliability reports.
SB459-SSA1, s. 67 25Section 67. 196.025 (4) (title) of the statutes is created to read:
SB459-SSA1,21,1
1196.025 (4) (title) Small-scale generation incentives.
SB459-SSA1, s. 68 2Section 68. 196.025 (5) (title) of the statutes is created to read:
SB459-SSA1,21,33 196.025 (5) (title) Market power study.
SB459-SSA1, s. 69 4Section 69. 196.374 of the statutes is repealed and recreated to read:
SB459-SSA1,21,6 5196.374 Energy efficiency and renewable resource programs. (1)
6Definitions. In this section:
SB459-SSA1,21,87 (a) "Agricultural producer" means a person engaged in an agricultural activity,
8as defined in s. 101.10 (1) (a).
SB459-SSA1,21,119 (b) "Commitment to community program" means an energy efficiency or load
10management program by or on behalf of a municipal utility or retail electric
11cooperative.
SB459-SSA1,21,1412 (c) "Customer application of renewable resources" means the generation of
13energy from renewable resources that takes place on the premises of a customer of
14an energy utility or municipal utility or a member of a retail electric cooperative.
SB459-SSA1,21,1815 (d) "Energy efficiency program" means a program for reducing the usage or
16increasing the efficiency of the usage of energy by a customer or member of an energy
17utility, municipal utility, or retail electric cooperative. "Energy efficiency program"
18does not include load management.
SB459-SSA1,21,2019 (e) "Energy utility" means an investor-owned electric or natural gas public
20utility.
SB459-SSA1,21,2521 (f) "Load management program" means a program to allow an energy utility,
22municipal utility, wholesale electric cooperative, as defined in s. 16.957 (1) (v), retail
23electric cooperative, or municipal electric company, as defined in s. 66.0825 (3) (d),
24to control or manage daily or seasonal customer demand associated with equipment
25or devices used by customers or members.
SB459-SSA1,22,1
1(g) "Local unit of government" has the meaning given in s. 23.24 (4) (a) 1.
SB459-SSA1,22,22 (h) "Municipal utility" has the meaning given in s. 16.957 (1) (q).
SB459-SSA1,22,63 (i) "Ordered program" means an energy efficiency or renewable resource
4program that an energy utility commenced on or after January 1, 2001, under a
5commission order issued on or after January 1, 2001, and in effect before the effective
6date of this paragraph .... [revisor inserts date].
SB459-SSA1,22,107 (j) "Renewable resource" means a resource that derives energy from any source
8other than coal, petroleum products, nuclear power or, except as used in a fuel cell,
9natural gas. "Renewable resource" includes resources deriving energy from any of
10the following:
SB459-SSA1,22,1111 1. Solar energy.
SB459-SSA1,22,1212 2. Wind power.
SB459-SSA1,22,1313 3. Water power.
SB459-SSA1,22,1414 4. Biomass.
SB459-SSA1,22,1515 5. Geothermal technology.
SB459-SSA1,22,1616 6. Tidal or wave action.
SB459-SSA1,22,1817 7. Fuel cell technology that uses, as determined by the commission, a renewable
18fuel.
SB459-SSA1,22,2419 (k) "Renewable resource program" means a program for encouraging the
20development or use of customer applications of renewable resources, including
21educating customers or members about renewable resources, encouraging
22customers or members to use renewable resources, and encouraging the transfer of
23new or emerging technologies from research, development, and demonstration to
24commercial implementation.
SB459-SSA1,22,2525 (L) "Retail electric cooperative" has the meaning given in s. 16.957 (1) (t).
SB459-SSA1,23,4
1(m) "Shared savings program" means a program under which a person finances
2the installation of energy efficiency improvements or renewable resources systems
3in the facilities of a customer and recovers the cost of the installation from a portion
4of the cost savings realized by the customer as a result of the installation.
SB459-SSA1,23,55 (n) "Wholesale supplier" has the meaning given in s. 16.957 (1) (w).
SB459-SSA1,23,66 (o) "Wholesale supply percentage" has the meaning given in s. 16.957 (1) (x).
SB459-SSA1,23,14 7(2) Energy efficiency and renewable resource programs. (a) Statewide
8programs.
1. The energy utilities in this state shall collectively establish and fund
9statewide energy efficiency and renewable resource programs. The energy utilities
10shall contract, on the basis of competitive bids, with one or more persons to
11administer the programs. The utilities may not execute a contract under this
12subdivision unless the commission has approved the contract. The commission shall
13require each energy utility to spend the amount required under sub. (3) (b) 2. to fund
14statewide energy efficiency and renewable resource programs.
SB459-SSA1,23,1915 2. The purpose of the programs under this paragraph shall be to help achieve
16environmentally sound and adequate energy supplies at reasonable cost, consistent
17with the commission's responsibilities under s. 196.025 (1) (a) and the utilities'
18obligations under this chapter. The programs shall include, at a minimum, all of the
19following:
SB459-SSA1,23,2220 a. Components to address the energy needs of residential, commercial,
21agricultural, institutional, and industrial energy users and local units of
22government.
SB459-SSA1,24,623 b. Components to reduce the energy costs incurred by local units of government
24and agricultural producers, by increasing the efficiency of energy use by local units
25of government and agricultural producers. The commission shall ensure that not

1less than 10 percent of the moneys utilities are required to spend under subd. 1. or
2sub. (3) (b) 2. is spent annually on programs under this subdivision except that, if the
3commission determines that the full amount cannot be spent on cost-effective
4programs for local units of government and agricultural producers, the commission
5shall ensure that any surplus funds be spent on programs to serve commercial,
6institutional, and industrial customers.
SB459-SSA1,24,107 c. Initiatives and market strategies that address the needs of individuals or
8businesses facing the most significant barriers to creation of or participation in
9markets for energy efficient products that the individual or business manufactures
10or sells or energy efficiency services that the individual or business provides.
SB459-SSA1,24,1511 3. The commission may not require an energy utility to administer or fund any
12energy efficiency or renewable resource program that is in addition to the programs
13required under subd. 1. and any ordered program of the utility. This subdivision does
14not limit the authority of the commission to enforce an energy utility's obligations
15under s. 196.378.
SB459-SSA1,24,2216 (b) Utility-administered programs. 1. An energy utility may, with commission
17approval, administer or fund one or more energy efficiency programs that is limited
18to large commercial, industrial, institutional, or agricultural customers in its service
19territory. An energy utility shall pay for a program under this subdivision with a
20portion of the amount required under sub. (3) (b) 2., as approved by the commission.
21The commission may not order an energy utility to administer or fund a program
22under this subdivision.
SB459-SSA1,25,223 2. An energy utility may, with commission approval, administer or fund an
24energy efficiency or renewable resource program that is in addition to the programs

1required under par. (a) or authorized under subd. 1. The commission may not order
2an energy utility to administer or fund a program under this subdivision.
SB459-SSA1,25,73 3. An energy utility that administers or funds a program under subd. 1. or 2.
4or an ordered program may request, and the commission may approve, to modify or
5discontinue, in whole or in part, the ordered program. An energy utility shall request
6the establishment, modification, or discontinuation of a program under subd. 1. or
72. or an ordered program as part of a proceeding under sub. (3) (b) 1.
SB459-SSA1,25,148 (c) Customer programs. A customer of an energy utility may, with commission
9approval, administer and fund its own energy efficiency programs. A customer that
10funds a program under this paragraph may deduct the amount of the funding from
11the amount the customer is required to pay for the energy utility's recovery of
12amounts under sub. (5) (a) and the energy utility may credit the amount of the
13funding against the amount the energy utility is required to spend under sub. (3) (b)
142.
SB459-SSA1,25,24 15(3) Commission duties. (a) In general. The commission shall have oversight
16of programs under sub. (2). The commission shall maximize coordination of program
17delivery, including coordination between programs under subs. (2) (a) 1., (b) 1. and
182., and (c) and (7), ordered programs, low-income weatherization programs under s.
1916.957, renewable resource programs under s. 196.378, and other energy efficiency
20or renewable resource programs. The commission shall cooperate with the
21department of natural resources to ensure coordination of energy efficiency and
22renewable resource programs with air quality programs and to maximize and
23document the air quality improvement benefits that can be realized from energy
24efficiency and renewable resource programs.
SB459-SSA1,26,9
1(b) Programs and funding. 1. At least every 4 years, after notice and
2opportunity to be heard, the commission shall, by order, evaluate the energy
3efficiency and renewable resource programs under sub. (2) (a) 1., (b) 1. and 2., and
4(c) and ordered programs and set or revise goals, priorities, and measurable targets
5for the programs. The commission shall give priority to programs that moderate the
6growth in electric and natural gas demand and usage, facilitate markets and assist
7market providers to achieve higher levels of energy efficiency, promote energy
8reliability and adequacy, avoid adverse environmental impacts from the use of
9energy, and promote rural economic development.
SB459-SSA1,26,1610 2. The commission shall require each energy utility to spend 1.2 percent of its
11annual operating revenues to fund the utility's programs under sub. (2) (b) 1., the
12utility's ordered programs, and the utility's share of the statewide energy efficiency
13and renewable resource programs under sub. (2) (a) 1. Subject to approval under
14subd. 3., the commission may require each energy utility to spend a larger percentage
15of its annual operating revenues to fund these programs. The commission may make
16such a requirement based on the commission's consideration of all of the following:
SB459-SSA1,26,2017 a. Studies of potential energy-efficiency improvements that could be made in
18this state, including at least one study completed within the preceding 2 years that
19provides a prospective 5-year and 10-year estimate of such potential that is
20cost-effective.
SB459-SSA1,26,2221 b. The potential short-term and long-term impacts on electric and natural gas
22rates and alternative means to mitigate such impacts.
SB459-SSA1,26,2523 c. The impact on the continuation and effectiveness of existing energy efficiency
24and renewable resource programs, and the ability of such programs to capture
25time-limited and cost-effective energy-efficiency opportunities.
SB459-SSA1,27,2
1d. The impact on the reliability and adequacy of systems for the generation and
2transmission of electricity and the transmission of natural gas.
SB459-SSA1,27,33 e. Societal impacts.
SB459-SSA1,27,54 f. The potential for displacing or delaying construction of electric generating
5plants and transmission lines.
SB459-SSA1,27,76 g. Economic impacts that are likely to accrue from reducing state and private
7expenditures on coal, natural gas, fuel oil, and other fossil fuel imports.
SB459-SSA1,27,88 h. Any other relevant factors.
SB459-SSA1,27,239 3. The commission shall submit to the joint committee on finance any proposal
10to require each energy utility to spend a larger percentage of its annual operating
11revenues than the percentage specified in subd. 2. (intro.) to fund the programs
12specified in subd. 2. (intro.). If the cochairpersons of the committee do not notify the
13commission within 10 working days after the commission submits such a proposal
14that the committee has scheduled a meeting to review the proposal, the commission
15may require each energy utility to spend the percentage specified in the proposal.
16If, within 10 working days after the commission submits a proposal, the
17cochairpersons of the committee notify the commission that the committee has
18scheduled a meeting to review the proposal, but, within 90 days of providing the
19notice, the committee does not object to the proposal, the commission may require
20each energy utility to spend the percentage specified in the proposal. If, within 90
21days after providing the notice, the committee objects to the proposal, the
22commission may not require each energy utility to spend the percentage specified in
23the proposal.
SB459-SSA1,27,2424 (c) Reviews and approvals. The commission shall do all of the following:
SB459-SSA1,28,2
11. Review and approve contracts under sub. (2) (a) 1. between the energy
2utilities and program administrators.
SB459-SSA1,28,73 2. Review requests under sub. (2) (b). The commission may condition its
4approval of a request under sub. (2) (b) as necessary to protect the public interest.
5The commission shall approve a request under sub. (2) (b) 1. or 2. if the commission
6determines that a proposed energy efficiency or renewable resource program is in the
7public interest and satisfies all of the following:
SB459-SSA1,28,98 a. The program has specific savings targets and performance goals approved
9by the commission.
SB459-SSA1,28,1010 b. The program is subject to independent evaluation by the commission.
SB459-SSA1,28,1211 c. Services under the program are provided through 3rd-party market
12providers on a nondiscriminatory basis.
SB459-SSA1,28,1713 (d) Audits. Annually, the commission shall contract with one or more
14independent auditors to prepare a financial and performance audit of the programs
15specified in par. (b) 1. The purpose of the performance audit shall be to evaluate the
16programs and measure the performance of the programs against the goals and
17targets set by the commission under par. (b) 1.
SB459-SSA1,28,2018 (e) Reports. Annually, the commission shall prepare and post on the
19commission's Internet site a report and submit a summary of not more than 2 pages
20to the legislature under s. 13.172 (2). The reports shall describe each of the following:
SB459-SSA1,28,2321 1. The expenses of the commission, utilities, and program administrators
22contracted under sub. (2) (a) 1. in administering or participating in the programs
23under sub. (2) (a) 1.
SB459-SSA1,29,3
12. The effectiveness of the programs specified in par. (b) 1. and sub. (7) in
2reducing demand for electricity and increasing the use of renewable resources owned
3by customers or members.
SB459-SSA1,29,44 3. The results of audits under par. (d).
SB459-SSA1,29,55 4. Any other information required by the commission.
SB459-SSA1,29,76 (f) Rules. The commission shall promulgate rules to establish all of the
7following:
SB459-SSA1,29,118 1. Procedures for energy utilities to collectively contract with program
9administrators for administration of statewide programs under sub. (2) (a) 1. and to
10receive contributions from municipal utilities and retail electric cooperatives under
11sub. (7) (b) 2.
SB459-SSA1,29,1412 2. Procedures and criteria for commission review and approval of contracts for
13administration of statewide programs under sub. (2) (a) 1., including criteria for the
14selection of program administrators under sub. (2) (a) 1.
SB459-SSA1,29,1715 3. Procedures and criteria for commission review and approval of
16utility-administered programs under sub. (2) (b) 1. and 2., customer programs under
17sub. (2) (c), and requests under sub. (2) (b) 3.
SB459-SSA1,29,2018 4. Minimum requirements for energy efficiency and renewable resource
19programs under sub. (2) (a) 1. and (b) 1. and 2. and customer energy efficiency
20programs under sub. (2) (c).
SB459-SSA1,29,24 21(4) Discrimination prohibited; competition. (a) In implementing programs
22under sub. (2) (a) 1., including the awarding of grants or contracts, a person who
23contracts with the utilities under sub. (2) (a) 1., or a person who subcontracts with
24such a person:
SB459-SSA1,30,3
11. May not discriminate against an energy utility or its affiliate or a wholesale
2supplier or its affiliate solely on the basis of its status as an energy utility or its
3affiliate or wholesale supplier or its affiliate.
SB459-SSA1,30,54 2. Shall provide services to utility customers on a nondiscriminatory basis and
5subject to a customer's choice.
SB459-SSA1,30,126 (b) An energy utility that provides financing under an energy efficiency
7program under sub. (2) (b) 1. or 2. for installation, by a customer, of energy efficiency
8or renewable resource processes, equipment, or appliances, or an affiliate of such a
9utility, may not sell to or install for the customer those processes, equipment,
10appliances, or related materials. The customer shall acquire the installation of the
11processes, equipment, appliances, or related materials from an independent
12contractor of the customer's choice.
SB459-SSA1,30,15 13(5) Cost recovery; equitable distribution. (a) The commission shall ensure
14in rate-making orders that an energy utility recovers from its ratepayers the
15amounts the energy utility is required to spend under sub. (3) (b) 2.
SB459-SSA1,30,2316 (b) If a ratepayer was required to pay more than $750 for an energy utility's
17recovery of amounts under s. 196.374 (3), 2003 stats., in any month during 2005, the
18ratepayer shall pay the energy utility, for the recovery of amounts under par. (a), a
19monthly amount equal to the monthly average that the ratepayer paid the energy
20utility in 2005 for recovery under s. 196.374 (3), 2003 stats. Annually, the
21commission shall increase the amount that a ratepayer of an energy utility is
22required to pay under this paragraph by a percentage that is the lesser of the
23following:
SB459-SSA1,30,2524 1. The percentage increase in the energy utility's operating revenues during the
25preceding year.
SB459-SSA1,31,3
12. The percentage increase in the consumer price index for all urban
2consumers, U.S. city average, as determined by the U.S. department of labor, during
3the preceding year.
SB459-SSA1,31,64 (c) The commission may prescribe the accounting treatment of energy utility
5expenditures required under this section, including the use of any escrow
6accounting.
SB459-SSA1,31,167 (d) The commission shall ensure that the cost of energy efficiency and
8renewable resource programs is equitably divided among customer classes so that
9similarly situated ratepayers contribute equivalent amounts for the programs. The
10commission shall periodically review the amounts that the ratepayers of an energy
11utility pay for the recovery of amounts under par. (a) and shall make adjustments
12that ensure that ratepayers with similar levels of energy costs pay similar amounts.
13The commission shall also ensure that, on an annual basis, each customer class of
14an energy utility has the opportunity to receive grants and benefits under energy
15efficiency programs in an amount equal to the amount that is recovered from the
16customer class under par. (a).
SB459-SSA1,31,2217 (e) The commission shall ensure that customers throughout the state have an
18equivalent opportunity to receive the benefits of the programs under sub. (2) (a) 1.
19and (b) 1. The commission shall ensure that statewide programs are designed to
20ensure that retail customers in areas not served by programs under sub. (2) (b) 1.
21receive equivalent opportunities as those in areas served by programs under sub. (2)
22(b) 1.
SB459-SSA1,32,2 23(6) Annual statements. Annually, the commission shall prepare a statement
24that describes the programs under sub. (2) (a) 1., (b) 1. and 2., and (c), and ordered
25programs, administered or funded by the energy utility and presents cost and benefit

1information for those programs. An energy utility shall provide each of its customers
2with a copy of the statement.
SB459-SSA1,32,9 3(7) Municipal utilities and retail electric cooperatives. (a) Requirement to
4charge fees.
1. Each retail electric cooperative and municipal utility shall charge a
5monthly fee to each customer or member in an amount that is sufficient for the retail
6electric cooperative or municipal utility to collect an annual average of $8 per meter.
7A retail electric cooperative or municipal utility may determine the amount that a
8particular class of customers or members is required to pay under this subdivision
9and may charge different fees to different classes of customers or members.
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