Amendment SSA1-SB459

SB459-SSA1,26,22 b. The potential short-term and long-term impacts on electric and natural gas rates and alternative means to mitigate such impacts.

SB459-SSA1,26,25 c. The impact on the continuation and effectiveness of existing energy efficiency and renewable resource programs, and the ability of such programs to capture time-limited and cost-effective energy-efficiency opportunities.

SB459-SSA1,27,2 d. The impact on the reliability and adequacy of systems for the generation and transmission of electricity and the transmission of natural gas.

SB459-SSA1,27,3 e. Societal impacts.

SB459-SSA1,27,5 f. The potential for displacing or delaying construction of electric generating plants and transmission lines.

SB459-SSA1,27,7 g. Economic impacts that are likely to accrue from reducing state and private expenditures on coal, natural gas, fuel oil, and other fossil fuel imports.

SB459-SSA1,27,8 h. Any other relevant factors.

SB459-SSA1,27,23 3. The commission shall submit to the joint committee on finance any proposal to require each energy utility to spend a larger percentage of its annual operating revenues than the percentage specified in subd. 2. (intro.) to fund the programs specified in subd. 2. (intro.). If the cochairpersons of the committee do not notify the commission within 10 working days after the commission submits such a proposal that the committee has scheduled a meeting to review the proposal, the commission may require each energy utility to spend the percentage specified in the proposal. If, within 10 working days after the commission submits a proposal, the cochairpersons of the committee notify the commission that the committee has scheduled a meeting to review the proposal, but, within 90 days of providing the notice, the committee does not object to the proposal, the commission may require each energy utility to spend the percentage specified in the proposal. If, within 90 days after providing the notice, the committee objects to the proposal, the commission may not require each energy utility to spend the percentage specified in the proposal.

SB459-SSA1,27,24 (c) Reviews and approvals. The commission shall do all of the following:

SB459-SSA1,28,2 1. Review and approve contracts under sub. (2) (a) 1. between the energy utilities and program administrators.

SB459-SSA1,28,7 2. Review requests under sub. (2) (b). The commission may condition its approval of a request under sub. (2) (b) as necessary to protect the public interest. The commission shall approve a request under sub. (2) (b) 1. or 2. if the commission determines that a proposed energy efficiency or renewable resource program is in the public interest and satisfies all of the following:

SB459-SSA1,28,9 a. The program has specific savings targets and performance goals approved by the commission.

SB459-SSA1,28,10 b. The program is subject to independent evaluation by the commission.

SB459-SSA1,28,12 c. Services under the program are provided through 3rd-party market providers on a nondiscriminatory basis.

SB459-SSA1,28,17 (d) Audits. Annually, the commission shall contract with one or more independent auditors to prepare a financial and performance audit of the programs specified in par. (b) 1. The purpose of the performance audit shall be to evaluate the programs and measure the performance of the programs against the goals and targets set by the commission under par. (b) 1.

SB459-SSA1,28,20 (e) Reports. Annually, the commission shall prepare and post on the commission's Internet site a report and submit a summary of not more than 2 pages to the legislature under s. 13.172 (2). The reports shall describe each of the following:

SB459-SSA1,28,23 1. The expenses of the commission, utilities, and program administrators contracted under sub. (2) (a) 1. in administering or participating in the programs under sub. (2) (a) 1.

SB459-SSA1,29,3 2. The effectiveness of the programs specified in par. (b) 1. and sub. (7) in reducing demand for electricity and increasing the use of renewable resources owned by customers or members.

SB459-SSA1,29,4 3. The results of audits under par. (d).

SB459-SSA1,29,5 4. Any other information required by the commission.

SB459-SSA1,29,7 (f) Rules. The commission shall promulgate rules to establish all of the following:

SB459-SSA1,29,11 1. Procedures for energy utilities to collectively contract with program administrators for administration of statewide programs under sub. (2) (a) 1. and to receive contributions from municipal utilities and retail electric cooperatives under sub. (7) (b) 2.

SB459-SSA1,29,14 2. Procedures and criteria for commission review and approval of contracts for administration of statewide programs under sub. (2) (a) 1., including criteria for the selection of program administrators under sub. (2) (a) 1.

SB459-SSA1,29,17 3. Procedures and criteria for commission review and approval of utility-administered programs under sub. (2) (b) 1. and 2., customer programs under sub. (2) (c), and requests under sub. (2) (b) 3.

SB459-SSA1,29,20 4. Minimum requirements for energy efficiency and renewable resource programs under sub. (2) (a) 1. and (b) 1. and 2. and customer energy efficiency programs under sub. (2) (c).

SB459-SSA1,29,24 (4) Discrimination prohibited; competition. (a) In implementing programs under sub. (2) (a) 1., including the awarding of grants or contracts, a person who contracts with the utilities under sub. (2) (a) 1., or a person who subcontracts with such a person:

SB459-SSA1,30,3 1. May not discriminate against an energy utility or its affiliate or a wholesale supplier or its affiliate solely on the basis of its status as an energy utility or its affiliate or wholesale supplier or its affiliate.

SB459-SSA1,30,5 2. Shall provide services to utility customers on a nondiscriminatory basis and subject to a customer's choice.

SB459-SSA1,30,12 (b) An energy utility that provides financing under an energy efficiency program under sub. (2) (b) 1. or 2. for installation, by a customer, of energy efficiency or renewable resource processes, equipment, or appliances, or an affiliate of such a utility, may not sell to or install for the customer those processes, equipment, appliances, or related materials. The customer shall acquire the installation of the processes, equipment, appliances, or related materials from an independent contractor of the customer's choice.

SB459-SSA1,30,15 (5) Cost recovery; equitable distribution. (a) The commission shall ensure in rate-making orders that an energy utility recovers from its ratepayers the amounts the energy utility is required to spend under sub. (3) (b) 2.

SB459-SSA1,30,23 (b) If a ratepayer was required to pay more than $750 for an energy utility's recovery of amounts under s. 196.374 (3), 2003 stats., in any month during 2005, the ratepayer shall pay the energy utility, for the recovery of amounts under par. (a), a monthly amount equal to the monthly average that the ratepayer paid the energy utility in 2005 for recovery under s. 196.374 (3), 2003 stats. Annually, the commission shall increase the amount that a ratepayer of an energy utility is required to pay under this paragraph by a percentage that is the lesser of the following:

SB459-SSA1,30,25 1. The percentage increase in the energy utility's operating revenues during the preceding year.

SB459-SSA1,31,3 2. The percentage increase in the consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, during the preceding year.

SB459-SSA1,31,6 (c) The commission may prescribe the accounting treatment of energy utility expenditures required under this section, including the use of any escrow accounting.

SB459-SSA1,31,16 (d) The commission shall ensure that the cost of energy efficiency and renewable resource programs is equitably divided among customer classes so that similarly situated ratepayers contribute equivalent amounts for the programs. The commission shall periodically review the amounts that the ratepayers of an energy utility pay for the recovery of amounts under par. (a) and shall make adjustments that ensure that ratepayers with similar levels of energy costs pay similar amounts. The commission shall also ensure that, on an annual basis, each customer class of an energy utility has the opportunity to receive grants and benefits under energy efficiency programs in an amount equal to the amount that is recovered from the customer class under par. (a).

SB459-SSA1,31,22 (e) The commission shall ensure that customers throughout the state have an equivalent opportunity to receive the benefits of the programs under sub. (2) (a) 1. and (b) 1. The commission shall ensure that statewide programs are designed to ensure that retail customers in areas not served by programs under sub. (2) (b) 1. receive equivalent opportunities as those in areas served by programs under sub. (2) (b) 1.

SB459-SSA1,32,2 (6) Annual statements. Annually, the commission shall prepare a statement that describes the programs under sub. (2) (a) 1., (b) 1. and 2., and (c), and ordered programs, administered or funded by the energy utility and presents cost and benefit information for those programs. An energy utility shall provide each of its customers with a copy of the statement.

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

SB459-SSA1,32,17 2. Notwithstanding subd. 1., the total increase in a customer's or member's monthly electric bill that is based on the requirement to pay fees under subd. 1., including any increase resulting from a retail electric cooperative's or municipal utility's compliance with this section, may not exceed 1.5 percent of the total of every other charge for which the member or customer is billed for that period or $375 per month, whichever is less. To reflect changes in the consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, the commission shall make annual adjustments to the amount of $375.

SB459-SSA1,32,22 (b) Commitment to community programs. 1. Except as provided in subd. 2., each retail electric cooperative and municipal utility shall spend the fees that it charges under par. (a) on commitment to community programs. A commitment to community program shall meet the program requirements under sub. (2) (a) 2. and comply with the rules promulgated under sub. (3) (f) 4.

SB459-SSA1,33,7 2. No later than October 1, 2007, and no later than every 3rd year after that date, each municipal utility or retail electric cooperative shall notify the commission whether it has elected to contribute the fees that it charges under par. (a) to statewide programs established under sub. (2) (a) 1. in each year of the 3-year period for which it has made the election. If a municipal utility or retail electric cooperative elects to contribute to the statewide programs established under sub. (2) (a) 1., the utility or cooperative shall contribute the fees that it collects under par. (a) to the payment of contracts under sub. (2) (a) 1. for administration of the statewide programs, as specified in the rules under sub. (3) (f) 1., in each year of the 3-year period for which the utility or cooperative has made the election.

SB459-SSA1,33,15 (c) Wholesale supplier credit. If a wholesale supplier has established an energy efficiency or load management program, a municipal utility or retail electric cooperative that is a customer or member of the wholesale supplier may include an amount equal to the product of the municipal utility's or retail electric cooperative's wholesale supply percentage and the amount that the wholesale supplier has spent on energy efficiency or load management programs in a year in calculating the amount that the municipal utility or retail electric cooperative has spent on commitment to community programs under par. (b).

SB459-SSA1,33,19 (d) Joint programs. Municipal utilities or retail electric cooperatives may establish joint commitment to community programs, except that each municipal utility or retail electric cooperative that participates in a joint program shall comply with the spending requirements under par. (b).

SB459-SSA1,33,23 (e) Reports. 1. Annually, each municipal utility and retail electric cooperative that spends the fee that it charges under par. (a) for commitment to community programs under par. (b) shall provide for an independent audit of its programs and submit a report to the commission that describes all of the following:

SB459-SSA1,34,2 a. An accounting of fees charged to customers or members under par. (a) in the year and expenditures on commitment to community programs under par. (b), including any amounts included in the municipal utility's or retail electric cooperative's calculations under par. (c).

SB459-SSA1,34,4 b. A description of commitment to community programs established by the municipal utility or retail electric cooperative in the year.

SB459-SSA1,34,6 c. The effectiveness of the commitment to community programs in reducing demand for electricity by customers or members.

SB459-SSA1,34,7 d. The results of audits under this subdivision.

SB459-SSA1,34,10 2. The commission shall require that municipal utilities and retail electric cooperatives file reports under subd. 1. electronically, in a format that allows for tabulation, comparison, and other analysis of the reports.

SB459-SSA1,34,12 3. The commission shall maintain reports filed under subd. 1. for at least 6 years.

SB459-SSA1,34,15 (8) Compliance. An energy utility that spends the full amount required under sub. (3) (b) 2. in any year is considered to have satisfied its requirements under this section for that year.

SB459-SSA1, s. 70 Section 70. 196.378 (1) (a) of the statutes is renumbered 196.378 (1) (ar) amended to read:

SB459-SSA1,34,23 196.378 (1) (ar) "Biomass" means a resource that derives energy from wood or plant material or residue, biological waste, crops grown for use as a resource or landfill gases. "Biomass" does not include garbage, as defined in s. 289.01 (9), or nonvegetation-based industrial, commercial or household waste, except that "biomass" includes refuse-derived fuel used for a renewable facility that was in service in this state before January 1, 1998.

SB459-SSA1, s. 71 Section 71. 196.378 (1) (ag) of the statutes is created to read:

SB459-SSA1,35,2 196.378 (1) (ag) "Baseline renewable percentage" means the average of an energy provider's renewable energy percentage for 2001, 2002, and 2003.

SB459-SSA1, s. 72 Section 72. 196.378 (1) (bm) of the statutes is repealed.

SB459-SSA1, s. 73 Section 73. 196.378 (1) (e) of the statutes is repealed.

SB459-SSA1, s. 74 Section 74. 196.378 (1) (f) of the statutes is repealed.

SB459-SSA1, s. 75 Section 75. 196.378 (1) (fg) of the statutes is created to read:

SB459-SSA1,35,8 196.378 (1) (fg) "Renewable energy" means electricity derived from a renewable resource.

SB459-SSA1, s. 76 Section 76. 196.378 (1) (fm) of the statutes is created to read:

SB459-SSA1,35,13 196.378 (1) (fm) "Renewable energy percentage" means, with respect to an electric provider for a particular year, the percentage that results from dividing the sum of the following by the total amount of electricity that the electric provider sold to retail customers or members for that year:

SB459-SSA1,35,14 1. The electric provider's total renewable energy for that year.

SB459-SSA1,35,16 2. The renewable resource credits created or purchased by the electric provider, if any, that the electric provider elects to use in that year.

SB459-SSA1, s. 77 Section 77. 196.378 (1) (fr) of the statutes is created to read:

SB459-SSA1,35,19 196.378 (1) (fr) "Renewable energy supplier" means a person from whom an electric provider purchases renewable energy at wholesale.

SB459-SSA1, s. 78 Section 78. 196.378 (1) (g) of the statutes is amended to read:

SB459-SSA1,36,2 196.378 (1) (g) "Renewable facility" means an installed and operational electric generating facility in which electricity is derived from a renewable resource. "Renewable facility" includes a facility the installation or operation of which is required under federal law, but does not include a facility the installation or operation of which is required under the laws of another state even if the installation or operation of the facility is also required under federal law, located in or outside this state, that generates renewable energy.

SB459-SSA1, s. 79 Section 79. 196.378 (1) (i) of the statutes is amended to read:

SB459-SSA1,36,5 196.378 (1) (i) "Renewable resource credit" means a credit calculated in accordance with rules promulgated under sub. (3) (a) 1. and 2.

SB459-SSA1, s. 80 Section 80. 196.378 (1) (n) of the statutes is repealed.

SB459-SSA1, s. 81 Section 81. 196.378 (1) (o) of the statutes is repealed and recreated to read:

SB459-SSA1,36,12 196.378 (1) (o) "Total renewable energy" means the total amount of renewable energy that the electric provider sold to its customers or members in a year. "Total renewable energy" does not include any energy that is used to comply with the renewable energy requirements of another state. "Total renewable energy" includes all of the following:

SB459-SSA1,36,16 1. Renewable energy supplied by a renewable facility owned or operated by an affiliated interest or wholesale supplier of an electric provider and allocated to the electric provider under an agreement between the electric provider and the affiliated interest or wholesale supplier.

SB459-SSA1,36,21 2. Renewable energy purchased by an affiliated interest or wholesale supplier of an electric provider from a renewable facility that is not owned or operated by the affiliated interest or wholesale supplier, which renewable energy is allocated to the electric provider under an agreement between the electric provider and the affiliated interest or wholesale supplier.

SB459-SSA1, s. 82 Section 82. 196.378 (1) (p) of the statutes is created to read:

SB459-SSA1,36,23 196.378 (1) (p) "Wholesale supplier" has the meaning given in s. 16.957 (1) (w).

SB459-SSA1, s. 83 Section 83. 196.378 (2) (a) of the statutes is repealed and recreated to read:

SB459-SSA1,37,8 196.378 (2) (a) 1. No later than June 1, 2016, the commission shall prepare a report stating whether, by December 31, 2015, the state has met a goal of 10 percent of all electric energy consumed in the state being renewable energy. If the goal has not been achieved, the report shall indicate why the goal was not achieved and how it may be achieved, and the commission shall prepare similar reports biennially thereafter until the goal is achieved. The commission shall submit reports under this subdivision to the governor and chief clerk of each house of the legislature for distribution to the legislature under s. 13.172 (2).

SB459-SSA1,37,9 2. Except as provided in pars. (e), (f), and (g):

SB459-SSA1,37,12 a. For the years 2006, 2007, 2008, and 2009, each electric provider may not decrease its renewable energy percentage below the electric provider's baseline renewable percentage.

SB459-SSA1,37,15 b. For the year 2010, each electric provider shall increase its renewable energy percentage so that it is at least 2 percentage points above the electric provider's baseline renewable percentage.

SB459-SSA1,37,18 c. For the years 2011, 2012, 2013, and 2014, each electric provider may not decrease its renewable energy percentage below the electric provider's renewable energy percentage required under subd. 2. b.

SB459-SSA1,37,21 d. For the year 2015, each electric provider shall increase its renewable energy percentage so that it is at least 6 percentage points above the electric provider's baseline renewable percentage.

SB459-SSA1,37,24 e. For each year after 2015, each electric provider may not decrease its renewable energy percentage below the electric provider's renewable energy percentage required under subd. 2. d.

SB459-SSA1, s. 84 Section 84. 196.378 (2) (b) 1. of the statutes is amended to read:

SB459-SSA1,38,4 196.378 (2) (b) 1. Total retail electric sales The total amount of electricity that an electric provider sold to retail customers or members in a year shall be calculated on the basis of an average of an the electric provider's retail electric sales in this state during the prior 3 years.

SB459-SSA1, s. 85 Section 85. 196.378 (2) (b) 1m. of the statutes is created to read:

SB459-SSA1,38,12 196.378 (2) (b) 1m. The amount of electricity provided by hydroelectric power that an electric provider may count toward satisfying the requirements of par. (a) 2. shall be the average of the amounts of hydroelectric power generated by facilities owned or operated by the electric provider for 2001, 2002, and 2003, adjusted to reflect the permanent removal from service of any of those facilities, plus all electricity provided by hydroelectric power that the electric provider purchased in the reporting year.