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.
SB459-SSA1,32,1710 2. Notwithstanding subd. 1., the total increase in a customer's or member's
11monthly electric bill that is based on the requirement to pay fees under subd. 1.,
12including any increase resulting from a retail electric cooperative's or municipal
13utility's compliance with this section, may not exceed 1.5 percent of the total of every
14other charge for which the member or customer is billed for that period or $375 per
15month, whichever is less. To reflect changes in the consumer price index for all urban
16consumers, U.S. city average, as determined by the U.S. department of labor, the
17commission shall make annual adjustments to the amount of $375.
SB459-SSA1,32,2218 (b) Commitment to community programs. 1. Except as provided in subd. 2.,
19each retail electric cooperative and municipal utility shall spend the fees that it
20charges under par. (a) on commitment to community programs. A commitment to
21community program shall meet the program requirements under sub. (2) (a) 2. and
22comply with the rules promulgated under sub. (3) (f) 4.
SB459-SSA1,33,723 2. No later than October 1, 2007, and no later than every 3rd year after that
24date, each municipal utility or retail electric cooperative shall notify the commission
25whether it has elected to contribute the fees that it charges under par. (a) to statewide

1programs established under sub. (2) (a) 1. in each year of the 3-year period for which
2it has made the election. If a municipal utility or retail electric cooperative elects to
3contribute to the statewide programs established under sub. (2) (a) 1., the utility or
4cooperative shall contribute the fees that it collects under par. (a) to the payment of
5contracts under sub. (2) (a) 1. for administration of the statewide programs, as
6specified in the rules under sub. (3) (f) 1., in each year of the 3-year period for which
7the utility or cooperative has made the election.
SB459-SSA1,33,158 (c) Wholesale supplier credit. If a wholesale supplier has established an energy
9efficiency or load management program, a municipal utility or retail electric
10cooperative that is a customer or member of the wholesale supplier may include an
11amount equal to the product of the municipal utility's or retail electric cooperative's
12wholesale supply percentage and the amount that the wholesale supplier has spent
13on energy efficiency or load management programs in a year in calculating the
14amount that the municipal utility or retail electric cooperative has spent on
15commitment to community programs under par. (b).
SB459-SSA1,33,1916 (d) Joint programs. Municipal utilities or retail electric cooperatives may
17establish joint commitment to community programs, except that each municipal
18utility or retail electric cooperative that participates in a joint program shall comply
19with the spending requirements under par. (b).
SB459-SSA1,33,2320 (e) Reports. 1. Annually, each municipal utility and retail electric cooperative
21that spends the fee that it charges under par. (a) for commitment to community
22programs under par. (b) shall provide for an independent audit of its programs and
23submit a report to the commission that describes all of the following:
SB459-SSA1,34,224 a. An accounting of fees charged to customers or members under par. (a) in the
25year and expenditures on commitment to community programs under par. (b),

1including any amounts included in the municipal utility's or retail electric
2cooperative's calculations under par. (c).
SB459-SSA1,34,43 b. A description of commitment to community programs established by the
4municipal utility or retail electric cooperative in the year.
SB459-SSA1,34,65 c. The effectiveness of the commitment to community programs in reducing
6demand for electricity by customers or members.
SB459-SSA1,34,77 d. The results of audits under this subdivision.
SB459-SSA1,34,108 2. The commission shall require that municipal utilities and retail electric
9cooperatives file reports under subd. 1. electronically, in a format that allows for
10tabulation, comparison, and other analysis of the reports.
SB459-SSA1,34,1211 3. The commission shall maintain reports filed under subd. 1. for at least 6
12years.
SB459-SSA1,34,15 13(8) Compliance. An energy utility that spends the full amount required under
14sub. (3) (b) 2. in any year is considered to have satisfied its requirements under this
15section for that year.
SB459-SSA1, s. 70 16Section 70. 196.378 (1) (a) of the statutes is renumbered 196.378 (1) (ar)
17amended to read:
SB459-SSA1,34,2318 196.378 (1) (ar) "Biomass" means a resource that derives energy from wood or
19plant material or residue, biological waste, crops grown for use as a resource or
20landfill gases. "Biomass" does not include garbage, as defined in s. 289.01 (9), or
21nonvegetation-based industrial, commercial or household waste, except that
22"biomass" includes refuse-derived fuel used for a renewable facility that was in
23service in this state before January 1, 1998.
SB459-SSA1, s. 71 24Section 71. 196.378 (1) (ag) of the statutes is created to read:
SB459-SSA1,35,2
1196.378 (1) (ag) "Baseline renewable percentage" means the average of an
2energy provider's renewable energy percentage for 2001, 2002, and 2003.
SB459-SSA1, s. 72 3Section 72. 196.378 (1) (bm) of the statutes is repealed.
SB459-SSA1, s. 73 4Section 73. 196.378 (1) (e) of the statutes is repealed.
SB459-SSA1, s. 74 5Section 74. 196.378 (1) (f) of the statutes is repealed.
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