Amendment SSA1-SB475

1. Requires the PSC to approve market-based rates for investor-owned electric utilities if the rates satisfy specified criteria.

2. Repeals an outdated filing requirement for such utilities regarding such rates.

3. Requires the PSC to consider interest rates for state and local bonds when setting the overall rate of return for municipal water and sewer utilities. This requirement replaces a requirement under current law for the PSC to apply an interest rate formula based on a federal reserve board publication.

4. Allows the PSC to regulate advertising by water public utilities to the same extent that the PSC regulates advertising by other public utilities under current law.

5. Eliminates a requirement for an investor-owned public utility to pay a fee when applying to the PSC to issue securities.

6. Makes changes to the criteria that must be satisfied to qualify for exemptions from the PSC certifications required for constructing or rebuilding certain electric transmission lines.

Settlements in PSC dockets

The substitute amendment creates requirements regarding settlements in PSC “dockets,” which the substitute amendment defines as investigations, proceedings, or other matters opened by a vote of the PSC, except for rule making. The substitute amendment allows parties to a docket to agree upon some or all of the facts, which must be evidenced by a written stipulation and filed with the PSC or entered upon the record. The substitute amendment also allows the parties to agree upon a resolution of some or all of the issues. If some of the parties propose a written settlement agreement, those parties must submit the agreement and relevant documents to the PSC and serve a copy of the agreement on all parties to the docket. If not all parties support the proposed settlement agreement, the settling parties must convene at least one conference for all parties to discuss the proposed settlement agreement, except that a nonsettling party may waive its right to the conference. Within 30 days of service of a proposed settlement agreement, each party must make a written response that consists of the party's agreement, objection, or nonobjection to the settlement agreement. A party must serve its response on all parties. If a party objects to a settlement agreement, the party must state its objections with particularity and specify how the party would be adversely affected by the agreement. If a party fails to respond within the 30-day deadline, the failure is considered a nonobjection, unless the PSC for good cause sets a different time for response.

The substitute amendment allows the PSC to approve a settlement agreement if all of the following conditions are met. First, each party that responded with an objection or nonobjection to the agreement or that failed to respond must have been given a reasonable opportunity to present evidence and arguments in opposition to the settlement agreement. Second, the PSC must find that the public interest is adequately represented by the parties who entered into the agreement. Finally, the PSC must find that the settlement agreement represents a fair and reasonable resolution to the docket, is supported by substantial evidence on the record as a whole, and complies with applicable law, including that any rates resulting from the settlement agreement are just and reasonable. The substitute amendment also allows the PSC to approve a settlement agreement in whole or in part and with conditions deemed necessary by the PSC. If a settlement agreement does not resolve all of the issues in the docket, the substitute amendment requires the PSC to decide the remaining issues in accordance with applicable law and procedure.

construction site erosion control and storm water management

The substitute amendment affects the treatment under a county construction site erosion control and storm water management zoning ordinance of the construction or maintenance of a facility, defined in the substitute amendment as property or equipment used for the transmission, delivery, or furnishing of natural gas, heat, light, or power and owned by a public utility or cooperative association organized for the purpose of producing or furnishing heat, light, or power to its members only. Under the substitute amendment, the construction and maintenance of a facility is considered to satisfy such a zoning ordinance if the Department of Natural Resources has issued all required navigable water, water and sewage, and pollution discharge permits or approvals authorizing the construction or maintenance or, if no such permits or approvals are required, if the construction and maintenance is conducted in a manner that employs best management practices to infiltrate or otherwise control storm water runoff from that infrastructure. Under current law, the construction and maintenance of a facility with these permits or approvals is considered to satisfy a county's shoreland zoning ordinance.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB475-SSA1,1 Section 1. 16.95 (12) of the statutes is renumbered 196.025 (7) (a) 3.

SB475-SSA1,2 Section 2. 16.955 of the statutes is renumbered 196.029, and 196.029 (1), (3) (a), (b) and (c) and (4) (a), (b) and (d), as renumbered, are amended to read:

SB475-SSA1,8,8 196.029 (1) Information. If the governor determines that a disruption of energy supplies poses a serious risk to the economic well-being, health or welfare of the citizens of this state, the governor may issue an order declaring an energy alert. Upon declaration of an energy alert by the governor, the department commission may issue general or special orders, as defined in s. 101.01 (7), or promulgate emergency rules under ch. 227 to compel disclosure of information required for purposes of this section. Any person, or agent of the person, who produces, imports or sells, coal or other forms of fuel, other than electricity, natural gas or wood, who is subject to an emergency rule or general or special order of the department commission within reasonable time limits specified in the order shall file or furnish such reports, information, data, copies of extracts of originals as the department commission deems necessary relating to existing and future energy supplies, including but not limited to record of sales in years for 1970 and thereafter, storage capacity, supplies on hand and anticipated supplies, and anticipated demand. To the extent that the reports and data requested by the department commission are presently available from other state or federal agencies, the department commission shall coordinate its data reporting requirements with the agencies to avoid duplication of reporting.

SB475-SSA1,8,14 (3) (a) Any person, or agent of a person, who produces, imports or sells, coal or other forms of fuel, other than electricity, natural gas or wood, who fails to provide information requested by the department commission at the time and in the manner specified by the department commission shall forfeit an amount not to exceed $1,000. Each day the violation of this section continues from the day notice has been received constitutes a separate offense.

SB475-SSA1,8,18 (b) Upon request of the department commission, the attorney general or the district attorney of the proper county may aid in any investigation, enforce any request of the department commission for information under this section or seek forfeitures for violations of this section.

SB475-SSA1,8,22 (c) Upon request of the department commission, the attorney general or the district attorney of the proper county may apply to any court of competent jurisdiction for a temporary or permanent injunction restraining any person from violating this section.

SB475-SSA1,8,25 (4) (a) The department commission or any of its authorized agents may, in relation to any matter arising under this section, conduct hearings, administer oaths, issue subpoenas and take testimony.

SB475-SSA1,9,7 (b) The witnesses subpoenaed by the department commission or its agent and officers who serve subpoenas shall be entitled to the fees allowed in courts of record. The fees shall be audited and paid by the state in the same manner as other expenses of the department commission are audited and paid. No witness subpoenaed at the instance of any party other than the department commission is entitled to payment of fees by the state, unless the department commission certifies that the testimony of the witness was material.

SB475-SSA1,9,9 (d) A record of all hearings shall be kept by the department commission. All hearings shall be public.

SB475-SSA1,3 Section 3. 26.03 (1v) (b) of the statutes is amended to read:

SB475-SSA1,9,12 26.03 (1v) (b) An electric cooperative, as defined in s. 196.025 (5) (ag) 101.80 (1g).

SB475-SSA1,4 Section 4 . 59.693 (11) of the statutes is created to read:

SB475-SSA1,9,18 59.693 (11) Utility facilities. (a) In this subsection, “facility" means any property or equipment of a public utility, as defined in s. 196.01 (5), or a cooperative association organized under ch. 185 for the purpose of producing or furnishing heat, light, or power to its members only, that is used for the transmission, delivery, or furnishing of natural gas, heat, light, or power.

SB475-SSA1,9,21 (b) The construction and maintenance of a facility is considered to satisfy the requirements of this section and any county ordinance enacted under this section if any of the following applies:

SB475-SSA1,9,23 1. The department has issued all required permits or approvals authorizing the construction or maintenance under ch. 30, 31, 281, or 283.

SB475-SSA1,9,25 2. No department permit or approval under subd. 1. is required for the construction or maintenance and the construction or maintenance is conducted in a manner that employs best management practices to infiltrate or otherwise control storm water runoff from the facility.

SB475-SSA1,5 Section 5. 101.80 (1g) of the statutes is amended to read:

SB475-SSA1,10,7 101.80 (1g) “Electric cooperative" has the meaning given in s. 196.025 (5) (ag) means a cooperative association organized under ch. 185 for the purpose of generating, distributing, or furnishing electric energy at retail or wholesale to its members only.

SB475-SSA1,6 Section 6 . 182.0175 (1) (aa) of the statutes is created to read:

SB475-SSA1,10,10 182.0175 (1) (aa) “Agricultural activity” has the meaning given in s. 101.10 (1) (a).

SB475-SSA1,7 Section 7 . 182.0175 (1) (ab) of the statutes is created to read:

SB475-SSA1,10,12 182.0175 (1) (ab) “Commission” means the public service commission.

SB475-SSA1,8 Section 8 . 182.0175 (1) (ac) of the statutes is created to read:

SB475-SSA1,10,15 182.0175 (1) (ac) “Complainant” means a person who files a complaint under sub. (3) (bg) 1. or 2.

SB475-SSA1,9 Section 9 . 182.0175 (1) (ag) of the statutes is created to read:

SB475-SSA1,10,18 182.0175 (1) (ag) “Damage prevention fund" means the fund established under sub. (1m) (d) 11.

SB475-SSA1,10 Section 10 . 182.0175 (1) (bq) of the statutes is created to read:

SB475-SSA1,10,21 182.0175 (1) (bq) “One-call system" means the system established under sub. (1m) (a).

SB475-SSA1,11 Section 11 . 182.0175 (1) (br) of the statutes is created to read:

SB475-SSA1,10,23 182.0175 (1) (br) “Panel" means the panel appointed under sub. (1m) (d) 8.

SB475-SSA1,12 Section 12 . 182.0175 (1) (bt) of the statutes is renumbered 182.0175 (1) (bo).

SB475-SSA1,13 Section 13 . 182.0175 (1) (bv) of the statutes is renumbered 182.0175 (1) (bx).

SB475-SSA1,14 Section 14. 182.0175 (1) (bw) of the statutes is created to read:

SB475-SSA1,11,2 182.0175 (1) (bw) “Political subdivision” means a city, village, town, or county.

SB475-SSA1,15 Section 15 . 182.0175 (1) (by) of the statutes is created to read:

SB475-SSA1,11,6 182.0175 (1) (by) “Respondent” means a person or a person's agent who is alleged in a complaint filed under sub. (3) (bg) 1. or 2. to have taken an action that the person or agent knew or should have known was in violation of this section.

SB475-SSA1,16 Section 16 . 182.0175 (1) (bz) of the statutes is created to read:

SB475-SSA1,11,8 182.0175 (1) (bz) “State agency” has the meaning given in s. 16.004 (12) (a).

SB475-SSA1,17 Section 17 . 182.0175 (1m) (d) 8. to 12. of the statutes are created to read:

SB475-SSA1,11,11 182.0175 (1m) (d) 8. Appoint a panel consisting of the following 7 members to carry out the duties specified in sub. (3) (bg) and (br):

SB475-SSA1,11,12 a. Two transmission facility owners.

SB475-SSA1,11,13 b. Two excavators.

SB475-SSA1,11,14 c. One employee of the operational center established under par. (a).

SB475-SSA1,11,15 d. One member who represents the interests of a political subdivision.

SB475-SSA1,11,16 e. One person employed as an underground line locator.

SB475-SSA1,11,18 9. Establish policies, procedures, and forms as necessary to implement the requirements under sub. (3) (bg) and (br).

SB475-SSA1,11,20 10. Provide for the production and administration of the educational course under sub. (3) (br) 4.

SB475-SSA1,11,22 11. Establish and maintain a damage prevention fund consisting of fees under sub. (3) (br) 4. and (c) 5. and surcharges under sub. (3) (d) 2.

SB475-SSA1,12,2 12. Use the damage prevention fund at the one-call system's discretion to pay the cost of producing and administering the educational course under sub. (3) (br) 4. or providing for public outreach and underground utility damage prevention awareness programs.

SB475-SSA1,18 Section 18 . 182.0175 (2) (am) (title) of the statutes is amended to read:

SB475-SSA1,12,4 182.0175 (2) (am) (title) Excavation notice and other duties.

SB475-SSA1,19 Section 19 . 182.0175 (2) (am) 3. of the statutes is renumbered 182.0175 (2) (as) 1. and amended to read:

SB475-SSA1,12,12 182.0175 (2) (as) 1. Maintain An excavator shall maintain an estimated minimum clearance of 18 inches between a marking for an unexposed underground transmission facility that is marked under sub. (2m) and the cutting edge or point of any power-operated excavating or earth moving earthmoving equipment, except as is necessary at the beginning of the excavation process to penetrate and remove the surface layer of pavement.

SB475-SSA1,12,16 2. When the an underground transmission facility becomes exposed or if the a transmission facility is already exposed, the excavator may reduce the clearance to 2 times the known limit of control of the cutting edge or point of the equipment or 12 inches, whichever is greater.

SB475-SSA1,20 Section 20 . 182.0175 (2) (am) 7. of the statutes is amended to read:

SB475-SSA1,12,22 182.0175 (2) (am) 7. Immediately notify the owner of a transmission facility if an inspection reveals that the transmission facility has been or may have been struck, damaged, dislocated, or disrupted and, if flammable, toxic, or corrosive gas or liquid has escaped that may endanger life, cause bodily harm, or result in damage to property, promptly make a report to the 911 emergency telephone number.

SB475-SSA1,21 Section 21 . 182.0175 (2) (as) (title) of the statutes is created to read:

SB475-SSA1,12,24 182.0175 (2) (as) (title) Minimum clearance.

SB475-SSA1,22 Section 22 . 182.0175 (2) (bm) (title) of the statutes is amended to read:

SB475-SSA1,13,1 182.0175 (2) (bm) (title) Notice contents.

SB475-SSA1,23 Section 23 . 182.0175 (2m) (b) (intro.) of the statutes is amended to read:

SB475-SSA1,13,20 182.0175 (2m) (b) Facilities marking. (intro.) A person owning transmission facilities, upon receipt of an excavation notice, shall mark in a reasonable manner the locations of transmission facilities at the area described in the notice to enable the excavator to locate the transmission facilities without endangering the security of the facilities or the public. For purposes of this paragraph, transmission facilities are marked in a reasonable manner if the owner of the transmission facilities locates and marks the transmission facilities to a level of accuracy and precision consistent with national standards. Except as provided in par. (bm), if the person is a local governmental unit and if the excavation notice relates to sewer or water facilities owned by the local governmental unit, the local governmental unit shall also mark the locations within the public right-of-way of all laterals connected to the sewer or water facilities at the area described in the notice. The marking of facilities shall be completed within 3 working days after receipt of the notice, or if notice is given more than 10 days before excavation is scheduled to begin, marking shall be completed at least 3 working days before excavation is scheduled to begin. If the approximate location of a transmission facility is marked with paint, flags, stakes or other physical means, the following color coding of lines, cables or conduits shall comply with the uniform color code adopted by the American National Standards Institute:

SB475-SSA1,24 Section 24 . 182.0175 (3) (title) of the statutes is repealed and recreated to read:

SB475-SSA1,13,24 182.0175 (3) (title) Enforcement for natural gas and other hazardous materials.

SB475-SSA1,25 Section 25. 182.0175 (3) (a) (title) of the statutes is renumbered 182.0175 (3) (d) (title) and amended to read:

SB475-SSA1,14,3 182.0175 (3) (d) (title) Forfeitures ; surcharges.

SB475-SSA1,26 Section 26 . 182.0175 (3) (a) of the statutes is renumbered 182.0175 (3) (d) 1. and amended to read:

SB475-SSA1,14,15 182.0175 (3) (d) 1. Any In a consent agreement under par. (c) 2. or order issued under par. (c) 4., the commission may directly assess a forfeiture of no more than $25,000 for each violation of this section against a person who willfully and knowingly violates knew or should have known that the person's action was in violation of this section may be required to forfeit $2,000 for each offense. Each day of continued violation constitutes a separate offense violation. No person may be required by the commission to forfeit an amount exceeding $500,000 for a single persisting violation. The commission shall remit the forfeitures to the secretary of administration for deposit in the school fund. No other forfeiture may be imposed for violating this section.

SB475-SSA1,27 Section 27 . 182.0175 (3) (b) of the statutes is renumbered 182.0175 (3r) and amended to read:

SB475-SSA1,14,22 182.0175 (3r) Misdemeanor. Whoever intentionally removes, moves, or obliterates a transmission facilities marking placed by the transmission facilities owner may be fined not more than $500 or imprisoned for not more than 30 days or both. This paragraph subsection does not apply to an excavator who removes or obliterates markings during an excavation.

SB475-SSA1,28 Section 28 . 182.0175 (3) (bc), (bg), (br) and (c) of the statutes are created to read:

SB475-SSA1,15,3 182.0175 (3) (bc) Applicability. 1. This subsection applies to violations involving transmission facilities that transport natural gas or other hazardous materials.

SB475-SSA1,15,5 2. Except as provided in subd. 3., this subsection does not apply to violations by any of the following:

SB475-SSA1,15,8 a. A residential property owner or tenant whose violation of this section results from an excavation on property owned or leased by the residential property owner or tenant.

SB475-SSA1,15,10 b. A person whose violation of this section results from an excavation performed while the person is engaged in an agricultural activity.

SB475-SSA1,15,12 3. Subdivision 2. does not apply to an excavation performed by or on behalf of a person engaged in the business of performing excavations for the public.