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.
SB459-SSA1, s. 75 6Section 75. 196.378 (1) (fg) of the statutes is created to read:
SB459-SSA1,35,87 196.378 (1) (fg) "Renewable energy" means electricity derived from a
8renewable resource.
SB459-SSA1, s. 76 9Section 76. 196.378 (1) (fm) of the statutes is created to read:
SB459-SSA1,35,1310 196.378 (1) (fm) "Renewable energy percentage" means, with respect to an
11electric provider for a particular year, the percentage that results from dividing the
12sum of the following by the total amount of electricity that the electric provider sold
13to retail customers or members for that year:
SB459-SSA1,35,1414 1. The electric provider's total renewable energy for that year.
SB459-SSA1,35,1615 2. The renewable resource credits created or purchased by the electric provider,
16if any, that the electric provider elects to use in that year.
SB459-SSA1, s. 77 17Section 77. 196.378 (1) (fr) of the statutes is created to read:
SB459-SSA1,35,1918 196.378 (1) (fr) "Renewable energy supplier" means a person from whom an
19electric provider purchases renewable energy at wholesale.
SB459-SSA1, s. 78 20Section 78. 196.378 (1) (g) of the statutes is amended to read:
SB459-SSA1,36,221 196.378 (1) (g) "Renewable facility" means an installed and operational electric
22generating facility in which electricity is derived from a renewable resource.
23"Renewable facility" includes a facility the installation or operation of which is
24required under federal law, but does not include a facility the installation or
25operation of which is required under the laws of another state even if the installation

1or operation of the facility is also required under federal law
, located in or outside this
2state, that generates renewable energy
.
SB459-SSA1, s. 79 3Section 79. 196.378 (1) (i) of the statutes is amended to read:
SB459-SSA1,36,54 196.378 (1) (i) "Renewable resource credit" means a credit calculated in
5accordance with rules promulgated under sub. (3) (a) 1. and 2.
SB459-SSA1, s. 80 6Section 80. 196.378 (1) (n) of the statutes is repealed.
SB459-SSA1, s. 81 7Section 81. 196.378 (1) (o) of the statutes is repealed and recreated to read:
SB459-SSA1,36,128 196.378 (1) (o) "Total renewable energy" means the total amount of renewable
9energy that the electric provider sold to its customers or members in a year. "Total
10renewable energy" does not include any energy that is used to comply with the
11renewable energy requirements of another state. "Total renewable energy" includes
12all of the following:
SB459-SSA1,36,1613 1. Renewable energy supplied by a renewable facility owned or operated by an
14affiliated interest or wholesale supplier of an electric provider and allocated to the
15electric provider under an agreement between the electric provider and the affiliated
16interest or wholesale supplier.
SB459-SSA1,36,2117 2. Renewable energy purchased by an affiliated interest or wholesale supplier
18of an electric provider from a renewable facility that is not owned or operated by the
19affiliated interest or wholesale supplier, which renewable energy is allocated to the
20electric provider under an agreement between the electric provider and the affiliated
21interest or wholesale supplier.
SB459-SSA1, s. 82 22Section 82. 196.378 (1) (p) of the statutes is created to read:
SB459-SSA1,36,2323 196.378 (1) (p) "Wholesale supplier" has the meaning given in s. 16.957 (1) (w).
SB459-SSA1, s. 83 24Section 83. 196.378 (2) (a) of the statutes is repealed and recreated to read:
SB459-SSA1,37,8
1196.378 (2) (a) 1. No later than June 1, 2016, the commission shall prepare a
2report stating whether, by December 31, 2015, the state has met a goal of 10 percent
3of all electric energy consumed in the state being renewable energy. If the goal has
4not been achieved, the report shall indicate why the goal was not achieved and how
5it may be achieved, and the commission shall prepare similar reports biennially
6thereafter until the goal is achieved. The commission shall submit reports under this
7subdivision to the governor and chief clerk of each house of the legislature for
8distribution to the legislature under s. 13.172 (2).
SB459-SSA1,37,99 2. Except as provided in pars. (e), (f), and (g):
SB459-SSA1,37,1210 a. For the years 2006, 2007, 2008, and 2009, each electric provider may not
11decrease its renewable energy percentage below the electric provider's baseline
12renewable percentage.
SB459-SSA1,37,1513 b. For the year 2010, each electric provider shall increase its renewable energy
14percentage so that it is at least 2 percentage points above the electric provider's
15baseline renewable percentage.
SB459-SSA1,37,1816 c. For the years 2011, 2012, 2013, and 2014, each electric provider may not
17decrease its renewable energy percentage below the electric provider's renewable
18energy percentage required under subd. 2. b.
SB459-SSA1,37,2119 d. For the year 2015, each electric provider shall increase its renewable energy
20percentage so that it is at least 6 percentage points above the electric provider's
21baseline renewable percentage.
SB459-SSA1,37,2422 e. For each year after 2015, each electric provider may not decrease its
23renewable energy percentage below the electric provider's renewable energy
24percentage required under subd. 2. d.
SB459-SSA1, s. 84 25Section 84. 196.378 (2) (b) 1. of the statutes is amended to read:
SB459-SSA1,38,4
1196.378 (2) (b) 1. Total retail electric sales The total amount of electricity that
2an electric provider sold to retail customers or members in a year
shall be calculated
3on the basis of an average of an the electric provider's retail electric sales in this state
4during the prior 3 years.
SB459-SSA1, s. 85 5Section 85. 196.378 (2) (b) 1m. of the statutes is created to read:
SB459-SSA1,38,126 196.378 (2) (b) 1m. The amount of electricity provided by hydroelectric power
7that an electric provider may count toward satisfying the requirements of par. (a) 2.
8shall be the average of the amounts of hydroelectric power generated by facilities
9owned or operated by the electric provider for 2001, 2002, and 2003, adjusted to
10reflect the permanent removal from service of any of those facilities, plus all
11electricity provided by hydroelectric power that the electric provider purchased in
12the reporting year.
SB459-SSA1, s. 86 13Section 86. 196.378 (2) (b) 3. of the statutes is repealed.
SB459-SSA1, s. 87 14Section 87. 196.378 (2) (b) 4. of the statutes is amended to read:
SB459-SSA1,38,1815 196.378 (2) (b) 4. The members or customers of a municipal electric company,
16as defined in s. 66.0825 (3) (d),
wholesale supplier may aggregate and allocate
17renewable energy among themselves and such a member may sell credits or portions
18of a credit allocated to the member
.
SB459-SSA1, s. 88 19Section 88. 196.378 (2) (b) 5. of the statutes is created to read:
SB459-SSA1,38,2420 196.378 (2) (b) 5. An electric provider that purchases renewable energy from
21a renewable energy supplier may use an allocated share of the renewable energy sold
22by the renewable energy supplier to comply with a requirement under par. (a) 2. or
23to create a credit under sub. (3) (a), provided that the cost of the renewable energy
24is included in the price the electric provider paid the renewable energy supplier.
SB459-SSA1, s. 89 25Section 89. 196.378 (2) (c) of the statutes is amended to read:
SB459-SSA1,39,15
1196.378 (2) (c) No later than April 15 annually, or another annual date specified
2by the commission by rule,
an electric provider shall submit a report to the
3department commission that identifies the electric provider's renewable energy
4percentage for the previous year and
describes the electric provider's compliance
5with par. (a) 2. and the electric provider's implementation plans for future
6compliance
. Reports under this paragraph may include certifications from
7wholesale suppliers renewable energy suppliers regarding the sources and amounts
8of renewable energy supplied to an the electric provider. The department
9commission may specify the documentation that is required to be included with
10reports submitted under this paragraph. The commission may require that electric
11providers submit the reports in a proceeding, initiated by the commission under this
12section relating to the implementation of s. 1.12, or in a proceeding for preparing a
13strategic energy assessment under s. 196.491 (2). No later than 90 days after the
14commission's receipt of an electric provider's report, the commission shall inform the
15electric provider whether the electric provider is in compliance with par. (a) 2.
SB459-SSA1, s. 90 16Section 90. 196.378 (2) (e) of the statutes is repealed and recreated to read:
SB459-SSA1,39,2317 196.378 (2) (e) An electric provider, or a wholesale supplier for its members,
18may request that the commission grant a delay for complying with a deadline
19specified in par. (a) 2. The commission shall hold a hearing on the request and, if
20requested by the electric provider or wholesale supplier, treat the matter as a
21contested case. The commission shall grant a delay if the commission determines
22that the applicant has demonstrated good faith efforts to comply with the deadline
23and that any of the following applies:
SB459-SSA1,40,3
11. Notwithstanding reasonable efforts to protect against undesirable impacts
2on the reliability of an electric provider's system, compliance with the deadline will
3have an undesirable impact on the reliability of the applicant's system.
SB459-SSA1,40,94 2. Notwithstanding reasonable efforts to protect against unreasonable
5increases in rates of the applicant's ratepayers or members, compliance with the
6deadline will result in unreasonable increases in rates of the applicant's ratepayers
7or members, including increases that are due to the discontinuation of federal
8renewable energy tax credits or other federal policies intended to reduce the
9acquisition costs of renewable energy.
SB459-SSA1,40,1310 3. Notwithstanding reasonable efforts to obtain required approvals, the
11applicant cannot comply with the deadline because the applicant or a supplier has
12experienced or will experience delays in receiving required siting or permitting
13approvals for renewable energy projects.
SB459-SSA1,40,1714 4. Notwithstanding reasonable efforts to secure transmission service, the
15applicant cannot comply with the deadline because the applicant faces transmission
16constraints that interfere with the economic and reliable delivery of renewable
17energy to the applicant's system.
SB459-SSA1, s. 91 18Section 91. 196.378 (2) (f) of the statutes is created to read:
SB459-SSA1,41,219 196.378 (2) (f) A wholesale electric cooperative for its members or a municipal
20electric company for its members may delay compliance with a deadline specified in
21par. (a) 2. for any reason specified in par. (e) 1. to 4. A wholesale electric cooperative
22or a municipal electric company that delays compliance with a deadline specified in
23par. (a) 2. shall inform the commission of the delay and the reason for the delay, and
24shall submit information to the commission demonstrating that, notwithstanding

1good faith efforts by the wholesale electric cooperative or municipal electric company
2and its members, the members cannot meet the deadline for the stated reason.
SB459-SSA1, s. 92 3Section 92. 196.378 (2) (g) of the statutes is created to read:
SB459-SSA1,41,64 196.378 (2) (g) 1. In this paragraph, "energy consumer advocacy group" means
5a group or organization that advocates on behalf of its members' interests regarding
6the cost, availability, and reliability of energy or regarding utility regulation.
SB459-SSA1,41,137 2. An energy consumer advocacy group may request that the commission grant
8to an electric provider that serves one or more members of the group a delay for
9complying with a deadline specified in par. (a) 2. The commission shall hold a
10hearing on the request and, if requested by the energy consumer advocacy group,
11treat the matter as a contested case. The commission shall grant a delay if the
12commission determines that the utility has demonstrated good faith efforts to
13comply with the deadline and that any of the conditions in par. (e) 1. to 4. apply.
SB459-SSA1, s. 93 14Section 93. 196.378 (3) (a) of the statutes is renumbered 196.378 (3) (a) 1. and
15amended to read:
SB459-SSA1,42,416 196.378 (3) (a) 1. An Subject to subd. 2., an electric provider that provides total
17renewable energy to its retail electric customers or members in excess of the
18percentages specified in sub. (2) (a) 1. to 6. 2. may, in the applicable year, create a
19renewable resource credit and
sell to any other electric provider a the renewable
20resource credit or a portion of a the renewable resource credit at any negotiated
21price. Alternatively, an An electric provider that creates or purchases a renewable
22resource credit or portion
may use a renewable resource the credit or portion of a
23renewable resource credit
in a subsequent year, as provided under par. (c), to
24establish compliance with sub. (2) (a) 2. The commission shall promulgate rules that
25establish requirements for the creation and use of a renewable resource credit

1created on or after January 1, 2004, including calculating the amount of a renewable
2resource credit, and for the tracking of renewable resource credits by a regional
3renewable resource credit tracking system. The rules shall specify the manner for
4aggregating or allocating credits under this subdivision or sub. (2) (b) 4. or 5
.
SB459-SSA1, s. 94 5Section 94. 196.378 (3) (a) 2. of the statutes is created to read:
SB459-SSA1,42,126 196.378 (3) (a) 2. The commission shall promulgate rules for calculating the
7amount of a renewable resource credit that is created from a renewable facility
8placed into service before January 1, 2004. The rules shall provide that the amount
9of a renewable resource credit created on or after January 1, 2004, from such a
10renewable facility, except a renewable facility owned by a retail customer of an
11electric provider, is limited to the incremental increase in output from the renewable
12facility that is due to capacity improvements made on or after January 1, 2004.
SB459-SSA1, s. 95 13Section 95. 196.378 (3) (b) of the statutes is amended to read:
SB459-SSA1,42,1514 196.378 (3) (b) The commission may promulgate rules that establish
15requirements and procedures for a sale under par. (a) 1.
SB459-SSA1, s. 96 16Section 96. 196.378 (3) (c) of the statutes is created to read:
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