AB649-ASA1, s. 121 3Section 121. 196.374 (3) (f) 2. of the statutes is amended to read:
AB649-ASA1,60,74 196.374 (3) (f) 2. Procedures and criteria for commission review and approval
5of contracts for administration of statewide programs under sub. (2) (a) 1., including
6criteria for the selection of program administrators under sub. (2) (a) 1. statewide
7programs contractors.
AB649-ASA1, s. 122 8Section 122. 196.374 (3) (f) 3. of the statutes is amended to read:
AB649-ASA1,60,129 196.374 (3) (f) 3. Procedures and criteria for commission review and approval
10of utility-administered, supplemental utility, and large energy customer programs
11under sub. (2) (b) 1. and 2., customer programs under sub. (2) (c), and requests under
12sub. (2) (b) 3.
AB649-ASA1, s. 123 13Section 123. 196.374 (3) (f) 4. of the statutes is amended to read:
AB649-ASA1,60,1714 196.374 (3) (f) 4. Minimum requirements for energy efficiency and renewable
15resource
the statewide, utility-administered, supplemental utility, and large energy
16customer
programs under sub. (2) (a) 1. and customer energy efficiency programs
17under sub. (2) (c)
.
AB649-ASA1, s. 124 18Section 124. 196.374 (4) (a) (intro.) of the statutes is amended to read:
AB649-ASA1,60,2319 196.374 (4) (a) (intro.) In implementing the statewide programs under sub. (2)
20(a) 1.
or administering a commitment to community program under a contract under
21sub. (7) (am) 2.
, including the awarding of grants or contracts, a person who contracts
22with the utilities under sub. (2) (a) 1.,
a statewide programs contractor or a person
23who subcontracts with such a person a statewide programs contractor:
AB649-ASA1, s. 125 24Section 125. 196.374 (4) (a) 1. of the statutes is amended to read:
AB649-ASA1,61,3
1196.374 (4) (a) 1. May not discriminate against an energy utility provider or
2its affiliate or a wholesale supplier or its affiliate solely on the basis of its status as
3an energy utility provider or its affiliate or wholesale supplier or its affiliate.
AB649-ASA1, s. 126 4Section 126. 196.374 (4) (a) 2. of the statutes is amended to read:
AB649-ASA1,61,65 196.374 (4) (a) 2. Shall provide services to utility customers target fuel users
6on a nondiscriminatory basis and subject to a customer's user's choice.
AB649-ASA1, s. 127 7Section 127. 196.374 (4) (b) of the statutes is amended to read:
AB649-ASA1,61,158 196.374 (4) (b) An energy utility that provides financing under an energy
9efficiency program under sub. (2) (b) 1. or 2.
a utility-administered or supplemental
10utility program
for installation, by a customer, of energy efficiency or renewable
11resource processes, equipment, or appliances, or an affiliate of such a utility, may not
12sell to or install for the customer those processes, equipment, appliances, or related
13materials. The customer shall acquire the installation of the processes, equipment,
14appliances, or related materials from an independent contractor of the customer's
15choice.
AB649-ASA1, s. 128 16Section 128. 196.374 (5) (a) of the statutes is amended to read:
AB649-ASA1,61,2117 196.374 (5) (a) Rate-making orders. The commission shall ensure in
18rate-making orders that an energy utility recovers from its ratepayers the amounts
19the energy utility spends for pays for statewide programs and the costs the energy
20utility incurs for utility-administered and supplemental utility
programs under sub.
21(2) (a) 1
.
AB649-ASA1, s. 129 22Section 129. 196.374 (5) (b) 1. and (bm) 3. of the statutes are consolidated,
23renumbered 196.374 (5) (b) 1. and amended to read:
AB649-ASA1,62,824 196.374 (5) (b) 1. Except as provided in sub. (2) (c) and par. (bm) 2. subds. 3.
25and 4.
, if the commission has determined that a customer of an energy utility is a

1large energy customer under 2005 Wisconsin Act 141, section 102 (8) (b), then, each
2month, the energy utility shall collect from the customer, for recovery of amounts
3under par. (a), the amount determined by the commission under 2005 Wisconsin Act
4141
, section 102 (8) (c). (bm) 3. Until the proposal under subd. 1. takes effect, the
5The commission may not include the revenues received from a large energy customer
6in the calculation of operating revenues for purposes of sub. (3) (b) 2. this subdivision
7for an energy utility that in 2005 did not collect revenues from its customers under
8s. 196.374 (3), 2003 stats.
AB649-ASA1, s. 130 9Section 130. 196.374 (5) (b) 2. of the statutes is amended to read:
AB649-ASA1,62,2310 196.374 (5) (b) 2. A customer of an energy utility that the commission has not
11determined is a large energy customer under 2005 Wisconsin Act 141, section 102 (8)
12(b), may petition the commission for a determination that the customer is a large
13energy customer. The commission shall determine that a petitioner is a large energy
14customer if the petitioner satisfies the definition of large energy customer for any
15month in the 12 months preceding the date of the petition. If the commission makes
16such a determination, the commission shall also determine the amount that the
17energy utility may collect from the customer each month for recovery of the amounts
18under par. (a). The commission shall determine an amount that ensures that the
19amount collected from the customer is similar to the amounts collected from other
20customers that have a similar level of energy costs as the customer. Except as
21provided in sub. (2) (c) and par. (bm) 2. subds. 3. and 4., each month, the energy utility
22shall collect from the customer, for recovery of amounts under par. (a), the amount
23determined by the commission under this subdivision.
AB649-ASA1, s. 131 24Section 131. 196.374 (5) (b) 4. of the statutes is created to read:
AB649-ASA1,63,6
1196.374 (5) (b) 4. In addition to the amounts that an energy utility may collect
2from a large energy customer under subd. 1. or 2., the energy utility may collect from
3the customer the customer's share of any amount that the energy utility is required
4to pay a statewide programs contractor which exceeds 1.2 percent of the energy
5utility's annual operating revenues for a year and the customer's share is subject to
6par. (d).
AB649-ASA1, s. 132 7Section 132. 196.374 (5) (bm) (title) of the statutes is repealed.
AB649-ASA1, s. 133 8Section 133. 196.374 (5) (bm) 1. of the statutes, as affected by 2009 Wisconsin
9Act 180
, is repealed.
AB649-ASA1, s. 134 10Section 134. 196.374 (5) (bm) 2. of the statutes is renumbered 196.374 (5) (b)
113. and 196.374 (5) (b) 3. (intro.), as renumbered, is amended to read:
AB649-ASA1,63,1612 196.374 (5) (b) 3. If, by July 1, 2009, legislation based on the proposal under
13subd. 1. has not been enacted, the
The commission shall, beginning on July 1, 2009,
14annually increase the amount that an energy utility may recover from a large energy
15customer each month under par. (b) subd. 1. or 2. only by a percentage that is the
16lesser of the following:
AB649-ASA1, s. 135 17Section 135. 196.374 (5) (d) of the statutes is amended to read:
AB649-ASA1,63,2218 196.374 (5) (d) Equitable contributions. Subject to pars. (b) and (bm) 2. par. (b)
191. to 3.
, the commission shall ensure that the cost of energy efficiency and renewable
20resource
the statewide and utility-administered programs is equitably divided
21among customer classes so that similarly situated ratepayers contribute equivalent
22amounts for the programs.
AB649-ASA1, s. 136 23Section 136. 196.374 (5m) (a) of the statutes is amended to read:
AB649-ASA1,64,1224 196.374 (5m) (a) The commission shall ensure that, on an annual basis, each
25customer class of an energy utility has the opportunity to receive grants and benefits

1under energy efficiency the statewide and utility-administered programs in an
2amount equal to the amount that is recovered from the customer class under sub. (5)
3(a)
equitable manner that meets the reasonable needs of the class for the grants and
4benefits and that is consistent with par. (am). The commission shall also ensure that
5the amounts recovered from ratepayers under sub. (5) (a) are used for the benefit of
6ratepayers and that end users of unregulated fuels receive grants and benefits under
7the statewide programs in an amount equal to the amount paid by prime suppliers
8to statewide program contractors under sub. (3) (bw) 4
. Biennially, the commission
9shall submit a report to the governor, and the chief clerk of each house of the
10legislature for distribution to the legislature under s. 13.172 (2), that summarizes the
11total amount recovered from each energy utility customer class and the total amount
12of grants made to, and benefits received by, each customer class.
AB649-ASA1, s. 137 13Section 137. 196.374 (5m) (am) of the statutes is created to read:
AB649-ASA1,64,1914 196.374 (5m) (am) The commission shall ensure that the statewide and
15utility-administered programs are administered in a manner that targets
16agricultural, commercial, industrial, and institutional sectors in order to achieve the
17available, most cost-effective energy conservation and efficiency measures that have
18the greatest potential to enable the state to meet or exceed the goals specified in s.
19299.03 (2) and (3m) (a) and (b) at the lowest costs.
AB649-ASA1, s. 138 20Section 138. 196.374 (5m) (b) of the statutes is amended to read:
AB649-ASA1,65,221 196.374 (5m) (b) The commission shall ensure that customers target fuel users
22throughout the state have an equivalent opportunity to receive the benefits of the
23statewide and utility-administered programs under sub. (2) (a) 1. and (b) 1. The
24commission shall ensure that the statewide programs are designed to ensure that
25retail customers target fuel users in areas not served by utility-administered

1programs under sub. (2) (b) 1. receive equivalent opportunities as those in areas
2served by utility-administered programs under sub. (2) (b) 1.
AB649-ASA1, s. 139 3Section 139. 196.374 (6) of the statutes is amended to read:
AB649-ASA1,65,94 196.374 (6) Annual statements. Annually, the commission shall prepare a
5statement that describes the statewide, utility-administered, supplemental utility,
6and large energy customer
programs under sub. (2) (a) 1., (b) 1. and 2., and (c), and
7ordered programs, administered or funded by the energy utility
and presents cost
8and benefit information for those programs. An energy utility shall provide each of
9its customers with a copy of the statement.
AB649-ASA1, s. 140 10Section 140. 196.374 (7) (a) of the statutes is repealed.
AB649-ASA1, s. 141 11Section 141. 196.374 (7) (am) of the statutes is created to read:
AB649-ASA1,65,1612 196.374 (7) (am) Quadrennial funding of goals. Except as provided in par. (bg),
13in each year of the quadrennium following the proceeding under sub. (3) (bc), each
14municipal utility and retail electric cooperative shall spend the amount determined
15by the municipal utility or retail electric cooperative under sub. (3) (br) 2. for that
16year on the following:
AB649-ASA1,65,1917 1. Commitment to community programs administered individually by the
18municipal utility or retail electric cooperative or jointly by the municipal utility or
19retail cooperative and other municipal utilities or retail electric cooperatives.
AB649-ASA1,65,2220 2. Contracts with a statewide programs contractor to administer commitment
21to community programs in the service territory of the municipal utility or retail
22electric cooperative.
AB649-ASA1,65,2523 3. Contracts with a wholesale supplier to administer commitment to
24community programs in the service territory of the municipal utility or retail electric
25cooperative.
AB649-ASA1,66,2
14. Any combination of commitment to community programs or contracts under
2subds. 1. to 3.
AB649-ASA1, s. 142 3Section 142. 196.374 (7) (b) (title) of the statutes is renumbered 196.374 (7)
4(br) (title).
AB649-ASA1, s. 143 5Section 143. 196.374 (7) (b) 1. of the statutes is renumbered 196.374 (7) (br)
6and amended to read:
AB649-ASA1,66,117 196.374 (7) (br) Except as provided in subd. 2., each retail electric cooperative
8and municipal utility shall spend the fees that it charges under par. (a) on
9commitment to community programs.
The purpose of the commitment to community
10programs under this paragraph shall be to help achieve environmentally sound and
11adequate energy supplies at reasonable cost.
AB649-ASA1, s. 144 12Section 144. 196.374 (7) (b) 2. of the statutes is repealed.
AB649-ASA1, s. 145 13Section 145. 196.374 (7) (bg) of the statutes is created to read:
AB649-ASA1,66,1914 196.374 (7) (bg) Wholesale supplier assignments. A municipal utility or retail
15electric cooperative may assign to a wholesale supplier the duty to achieve a goal
16determined for the municipal utility or retail electric cooperative under sub. (3) (bn)
171. f. for a regulated fuel. If a wholesale supplier accepts an assignment, the wholesale
18supplier shall notify the commission. A wholesale supplier that accepts an
19assignment shall do all of the following:
AB649-ASA1,66,2020 1. Determine the amount of funds necessary to achieve the assigned goal.
AB649-ASA1,66,2321 2. Spend the amount determined under subd. 1. in administering commitment
22to community programs on behalf of the municipal utility or retail electric
23cooperative.
AB649-ASA1,66,2524 3. Prepare and provide statements on behalf of the municipal utility or retail
25electric cooperative under par. (dm).
AB649-ASA1,67,2
14. Provide for audits and submit reports on behalf of the municipal utility or
2retail electric cooperative under par. (e).
AB649-ASA1,67,63 5. If the wholesale supplier accepts an assignment from more than one
4municipal utility or retail electric cooperative, carry out the duties specified in subds.
51. to 4. on an aggregate basis for all the municipal utilities and retail electric
6cooperatives for which the wholesale supplier has accepted an assignment.
AB649-ASA1, s. 146 7Section 146. 196.374 (7) (c) of the statutes is repealed.
AB649-ASA1, s. 147 8Section 147. 196.374 (7) (cm) of the statutes is created to read:
AB649-ASA1,67,119 196.374 (7) (cm) Cost recovery. The commission shall ensure in rate-making
10orders that a municipal utility recovers from its ratepayers the amounts the
11municipal utility spends to comply with this section.
AB649-ASA1, s. 148 12Section 148. 196.374 (7) (d) of the statutes is repealed.
AB649-ASA1, s. 149 13Section 149. 196.374 (7) (dm) of the statutes is created to read:
AB649-ASA1,67,1714 196.374 (7) (dm) Annual statements. Annually, a municipal utility or retail
15electric cooperative shall prepare a statement that describes the municipal utility's
16or retail electric cooperative's commitment to community programs and provide
17customers or members with a copy of the statement.
AB649-ASA1, s. 150 18Section 150. 196.374 (7) (e) (title) of the statutes is repealed and recreated to
19read:
AB649-ASA1,67,2020 196.374 (7) (e) (title) Audits and reports.
AB649-ASA1, s. 151 21Section 151. 196.374 (7) (e) 1. (intro.) of the statutes is amended to read:
AB649-ASA1,68,222 196.374 (7) (e) 1. (intro.) Annually, each municipal utility and retail electric
23cooperative that spends the fee that it charges under par. (a) for commitment to
24community programs under par. (b)
shall provide for an independent financial and
25program
audit of its the commitment to community programs that it administers or

1for which it contracts under par. (am)
and submit a report to the commission that
2describes all of the following:
AB649-ASA1, s. 152 3Section 152. 196.374 (7) (e) 1. a. of the statutes is amended to read:
AB649-ASA1,68,94 196.374 (7) (e) 1. a. An accounting of any fees charged to customers or members
5under par. (a) in the year in order to comply with the spending required under par.
6(am)
and an accounting of the expenditures in the year on commitment to community
7programs under par. (b), including any amounts included in the municipal utility's
8or retail electric cooperative's calculations under par. (c)
that the municipal utility
9or retail electric cooperative administers or for which it contracts under par. (am)
.
AB649-ASA1, s. 153 10Section 153. 196.374 (7) (e) 1. b. of the statutes is amended to read:
AB649-ASA1,68,1311 196.374 (7) (e) 1. b. A description of the commitment to community programs
12established by the municipal utility or retail electric cooperative in the year
13described in subd. 1. a.
AB649-ASA1, s. 154 14Section 154. 196.374 (7) (e) 1. c. of the statutes is amended to read:
AB649-ASA1,68,1715 196.374 (7) (e) 1. c. The effectiveness of the commitment to community
16programs described in subd. 1. a. in reducing demand for electricity by customers or
17members
regulated fuels.
AB649-ASA1, s. 155 18Section 155. 196.374 (7) (e) 1. e. of the statutes is created to read:
AB649-ASA1,68,2119 196.374 (7) (e) 1. e. An assessment, based on the program audit, of whether the
20commitment to community programs described in subd. 1. a. have met the goal for
21each regulated fuel for the year determined under sub. (3) (bn) 1. f.
AB649-ASA1, s. 156 22Section 156. 196.374 (8) of the statutes is renumbered 196.374 (8) (d) and
23amended to read:
AB649-ASA1,69,524 196.374 (8) (d) Exceptions. An energy utility that spends pays to a statewide
25programs contractor
the full amount required under sub. (3) (b) 2. (bw) 3. or 3g. in

1any year is considered to have satisfied its requirements under this section for that
2year. A municipal utility or retail electric cooperative that contracts with a statewide
3programs contractor under sub. (7) (am) 2. to achieve each of the utility's or
4cooperative's goals determined under sub. (3) (bn) 1. f. for a year is considered to have
5satisfied its requirements under this section for that year.
AB649-ASA1, s. 157 6Section 157. 196.374 (8) (a), (b) and (c) of the statutes are created to read:
AB649-ASA1,69,157 196.374 (8) (a) Determinations. 1. a. For each quadrennium following the
8proceeding under sub. (3) (bc), the commission shall determine the annual average
9reduction in demand for and use of each target fuel that is achieved under the
10statewide programs and achieved by or on behalf of each municipal utility and retail
11electric cooperative through commitment to community programs. Except as
12provided in subd. 1. b. and c., if the annual average reduction for a target fuel equals
13or exceeds the average of the goals determined under sub. (3) (bn) 1. e. or f. or 2. c.
14for the quadrennium, the commission shall conclude that the goal is achieved for the
15quadrennium.
AB649-ASA1,69,2116 b. If a municipal utility or retail electric cooperative enters into a contract
17under sub. (7) (am) 3. with a wholesale supplier and at least one other municipal
18utility or retail electric cooperative enters into a similar contract with the wholesale
19supplier, the commission shall determine whether to conclude that a goal is achieved
20for a regulated fuel for a year under subd. 1. a. based on the aggregate annual average
21reduction that results for that regulated fuel for that year under all of the contracts.
AB649-ASA1,70,222 c. If a wholesale supplier accepts assignment of a goal under sub. (7) (bg) for
23a regulated fuel for a year from more than one municipal utility or retail electric
24cooperative, the commission shall determine whether to conclude that the goal is
25achieved on an aggregate basis for all the municipal utilities and retail electric

1cooperatives for which the wholesale supplier has accepted the assignment, rather
2than on an individual basis for each municipal utility or retail electric cooperative.
AB649-ASA1,70,73 2. For each utility-administered, supplemental utility, and large energy
4customer program, the commission shall determine whether the program achieved
5the goals approved for the program under sub. (3) (c) 2. on average over the time
6period in which the program is in effect or another time period specified by the
7commission.
AB649-ASA1,70,118 (b) Reviews. 1. If the commission determines under par. (a) that a goal is not
9achieved, the commission shall investigate, as applicable, the statewide programs or
10the utility-administered, large energy customer, or commitment to community
11programs at issue, and determine the reasons for failure to achieve the goal.
AB649-ASA1,70,1812 2. If the commission determines under subd. 1. that a statewide programs
13contractor or person administering the utility-administered, large energy customer,
14or commitment to community program made a good faith effort to meet the goal and
15that the failure is due to factors outside the statewide program contractor's or
16person's control, the commission shall take those factors into account in modifying
17goals for and, where applicable, approving future programs administered by the
18statewide programs contractor or person.
AB649-ASA1,71,319 3. If the commission determines under subd. 1. that a statewide programs
20contractor or person administering the utility-administered, large energy customer,
21or commitment to community program did not make a good faith effort to achieve the
22goal or that the failure to achieve the goal was due to factors within the statewide
23program contractor's or person's control, the commission shall implement remedies
24according to the rules promulgated under par. (c). The commission may determine
25that a statewide programs contractor or person administering the

1utility-administered, large energy customer, or commitment to community program
2did not make a good faith effort to meet a goal only if the commission finds any of the
3following:
AB649-ASA1,71,54 a. The statewide programs contractor or person has repeatedly or grossly failed
5to meet a goal.
AB649-ASA1,71,96 b. For a commitment to community program, the municipal utility, retail
7electric cooperative, or wholesale supplier administering or contracting for the
8program did not determine an amount of funds under sub. (3) (br) 2. or (7) (bg) 1. that
9could reasonably be considered necessary to achieve the goal.
AB649-ASA1,71,1010 c. Any other condition specified by the commission by rule.
AB649-ASA1,71,1711 (c) Remedies. The commission shall promulgate rules specifying remedies to
12implement under par. (b) 3. that are in proportion to the magnitude of the failure to
13achieve a goal and the degree to which a statewide programs contractor or person
14administering the utility-administered, large energy customer, or commitment to
15community program did not make a good faith effort or did not control the factors
16that resulted in the failure to achieve the goal. The rules shall include all of the
17following remedies:
AB649-ASA1,71,2118 1. An order that a statewide programs contractor or person take corrective
19actions, which may include achieving the goal in a year or other time period specified
20by the commission, in addition to achieving any other goal under this section that
21applies to that year or time period.
AB649-ASA1,71,2222 2. For a goal under the statewide programs:
AB649-ASA1,71,2523 a. An order that the energy utilities invoke any provisions of a contract under
24sub. (2) (a) 1., or that a statewide programs contractor invoke any provisions of a
25subcontract, that impose monetary penalties for failure to achieve a goal.
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