AB940, s. 19 11Section 19. 66.073 (10) (a) of the statutes is renumbered 66.073 (10).
AB940, s. 20 12Section 20. 66.073 (10) (b) of the statutes is repealed.
AB940, s. 21 13Section 21. 86.16 (1) of the statutes is amended to read:
AB940,11,2114 86.16 (1) Any person, firm or corporation, including any foreign corporation
15authorized to transact business in this state may, subject to ss. 30.44 (3m), 30.45, and
16196.491 (3) (d) 3m. and 196.492, with the written consent of the department with
17respect to state trunk highways, and with the written consent of local authorities
18with respect to highways under their jurisdiction, including connecting highways,
19construct and operate telegraph, telephone or electric lines, or pipes or pipelines for
20the purpose of transmitting messages, water, heat, light or power along, across or
21within the limits of the highway.
AB940, s. 22 22Section 22. 182.017 (1) of the statutes is amended to read:
AB940,12,1323 182.017 (1) Right-of-way for. Any domestic corporation organized to furnish
24telegraph or telecommunications service or transmit heat, power or electric current
25to the public or for public purposes, and any an independent system operator, as

1defined in s. 196.485 (1) (d), an independent transmission owner, as defined in s.
2196.485 (1) (dm), or a
cooperative association organized under ch. 185 to furnish
3telegraph or telecommunications service or transmit heat, power or electric current
4to its members, may, subject to ss. 30.44 (3m), 30.45, 86.16, and 196.491 (3) (d) 3m.
5and 196.492 and to reasonable regulations made by any city, village or town through
6which its transmission lines or systems may pass, construct and maintain such lines
7or systems with all necessary appurtenances in, across or beneath any public
8highway or bridge or any stream or body of water, or upon any lands of any owner
9consenting thereto, and for such purpose may acquire lands or the necessary
10easements; and may connect and operate its lines or system with other lines or
11systems devoted to like business, within or without this state, and charge reasonable
12rates for the transmission and delivery of messages or the furnishing of heat, power
13or electric light.
AB940, s. 23 14Section 23. 196.03 (5m) of the statutes is created to read:
AB940,12,2015 196.03 (5m) The commission shall promulgate rules establishing
16requirements and procedures for the commission, in setting rates for retail electric
17service, to reduce the revenue requirement of a public utility by an amount that
18reflects, as determined by the commission, the fixed capital costs of generating
19facilities within the state that are incurred to make any sale to a customer outside
20this state that the public utility does not have a duty to serve.
AB940, s. 24 21Section 24. 196.24 (3) of the statutes is amended to read:
AB940,13,722 196.24 (3) The commission may conduct any number of investigations
23contemporaneously through different agents, and may delegate to any agent the
24authority to take testimony bearing upon any investigation or at any hearing. The
25decision of the commission shall comply with s. 227.46 and shall be based upon its

1records and upon the evidence before it, except that, notwithstanding s. 227.46 (4),
2a decision maker may hear a case or read or review the record of a case if the record
3includes a synopsis or summary of the testimony and other evidence presented at the
4hearing that is prepared by the commission staff. Parties shall have an opportunity
5to demonstrate to a decision maker that a synopsis or summary prepared under this
6subsection is not sufficiently complete or accurate to fairly reflect the relevant and
7material testimony or other evidence presented at a hearing
.
AB940, s. 25 8Section 25. 196.377 (title) of the statutes is created to read:
AB940,13,9 9196.377 (title) Renewable energy sources.
AB940, s. 26 10Section 26. 196.377 of the statutes is renumbered 196.377 (1).
AB940, s. 27 11Section 27. 196.377 (2) of the statutes is created to read:
AB940,13,1212 196.377 (2) Eastern Wisconsin utilities. (a) In this subsection:
AB940,13,1613 1. "Eastern Wisconsin utility" means a public utility, other than a municipal
14utility that, on the effective date of this subdivision .... [revisor inserts date], provided
15retail electric service to customers in the geographic area of the state that was served
16by the reliability council on that date.
AB940,13,1717 2. "Municipality" means a city, town or village.
AB940,13,1918 3. "Municipal utility" means a public utility that is a municipality or that is
19wholly owned or operated by a municipality.
AB940,13,2120 4. "Reliability council" means the Mid-America Interconnected Network, Inc.,
21reliability council of the North American Electric Reliability Council.
AB940,14,422 (b) Except as provided in par. (d), no later than December 31, 2000, each eastern
23Wisconsin utility shall construct or procure, on a competitive basis, the construction
24of an aggregate total of 50 megawatts of new electric capacity in this state that is,
25to the satisfaction of the commission, generated from renewable energy sources.

1Each eastern Wisconsin utility shall construct or procure the construction of a share
2of the aggregate total required under this paragraph that corresponds to the utility's
3share, as determined by the commission, of the aggregate demand for electricity that
4is supplied by the utilities in the area served by the reliability council.
AB940,14,65 (c) An eastern Wisconsin utility may procure the construction required under
6par. (a) by issuing requests for proposals no later than September 30, 1998.
AB940,14,107 (d) The commission may allow an eastern Wisconsin utility to comply with the
8requirements under par. (b) by a date that is later than December 31, 2000, if the
9commission determines that the later date is necessary due to circumstances beyond
10the utility's control.
AB940,14,1411 (e) Any new electric capacity that is generated from a wind power project for
12which an eastern Wisconsin utility has issued a request for proposals before the
13effective date of this paragraph .... [revisor inserts date], may be counted in
14determining whether the utility has satisfied the requirements under par. (b).
AB940,14,1715 (f) The commission shall allow an eastern Wisconsin utility to recover in its
16retail electric rates any costs that are prudently incurred by the utility in complying
17with the requirements under par. (b).
AB940, s. 28 18Section 28. 196.39 of the statutes is renumbered 196.39 (1) and amended to
19read:
AB940,14,2420 196.39 (1) The commission at any time, on its own motion or upon motion of
21an interested party, and
upon notice to the public utility and after opportunity to be
22heard, may rescind, alter or amend any order fixing rates, tolls, charges or schedules,
23or any other order made by the commission, and may reopen any case following the
24issuance of an order in the case, for any reason.
AB940,15,2
1(3) Any order under sub. (1) rescinding, altering, amending or reopening a prior
2order shall have the same effect as an original order.
AB940,15,6 3(4) Within 30 days after service of an order under sub. (1), the commission may
4correct an error or omission in the order related to transcription, typing or
5calculation without hearing if the correction does not alter the intended effect of the
6order.
AB940, s. 29 7Section 29. 196.39 (2) of the statutes is created to read:
AB940,15,118 196.39 (2) An interested party may request the reopening of any case, but only
9after petitioning for a rehearing of the case under s. 227.49. The commission may
10reopen a case upon the request of an interested party only after the conclusion of any
11proceedings under s. 227.49.
AB940, s. 30 12Section 30. 196.485 of the statutes is created to read:
AB940,15,13 13196.485 Independent system operator. (1) Definitions. In this section:
AB940,15,1414 (a) "Affiliated interest of a person" means any of the following:
AB940,15,1615 1. Any person owning or holding directly or indirectly 5% or more of the voting
16securities of the person.
AB940,15,1817 2. Any person in any chain of successive ownership of 5% or more of voting
18securities of the person.
AB940,15,2119 3. Any corporation 5% or more of whose voting securities is owned by any
20person owning 5% or more of the voting securities of the person or by any person in
21any chain of successive ownership of 5% or more of the voting securities of the person.
AB940,15,2422 4. Any person who is an officer or director of the person or of any corporation
23in any chain of successive ownership of 5% or more of the voting securities of the
24person.
AB940,16,6
15. Any corporation operating a servicing organization for furnishing
2supervisory, construction, engineering, accounting, legal or similar services to the
3person, which corporation has one or more officers or one or more directors in
4common with the person, and any other corporation which has directors in common
5with the person if the number of directors of the corporation is more than one-third
6of the total number of the person's directors.
AB940,16,77 6. Any subsidiary of the person.
AB940,16,88 (b) "Cooperative" means a cooperative association organized under ch. 185.
AB940,16,119 (c) "Federal agency" means, with respect to a transmission utility that is a
10cooperative, the rural utilities service and, with respect to a transmission utility that
11is a public utility, the federal energy regulatory commission.
AB940,16,1412 (d) "Independent system operator" means an independent system operator that
13requires the approval of a federal agency to operate transmission facilities in this
14state or a region.
AB940,16,1615 (dm) "Independent transmission owner" means a person that satisfies each of
16the following:
AB940,16,1717 1. The person does not own electric generation facilities.
AB940,16,2218 2. The person does not sell electric generation capacity or energy in a market
19within the geographic area that, on December 31, 1997, was served by the
20Mid-America Interconnected Network, Inc., Mid-Continent Area Power Pool, East
21Central Area Reliability Coordination Agreement or Southwest Power Pool
22reliability council of the North American Electric Reliability Council.
AB940,16,2323 3. The person is not an affiliated interest of a person specified in subd. 1. or 2.
AB940,16,2524 (e) "Region" means an interstate geographic area that includes any portion of
25this state.
AB940,17,2
1(f) "Rural utilities service" means the agency in the federal department of
2agriculture that is the successor to the rural electrification administration.
AB940,17,43 (fm) "Subsidiary" means any person, 5% or more of the securities of which are
4directly or indirectly owned by another person.
AB940,17,75 (g) "Transmission area" means the area of the state that, on January 1, 1997,
6was served by the Mid-America Interconnected Network, Inc., reliability council of
7the North American Electric Reliability Council.
AB940,17,128 (h) "Transmission facility" means any pipe, pipeline, duct, wire, line, conduit,
9pole, tower, equipment or other structure used for the transmission of electric power
10as determined by the public service commission on the basis of factors for identifying
11a transmission facility that are specified in the orders of the federal energy
12regulatory commission under 16 USC 824d and 824e.
AB940,17,1513 (i) "Transmission utility" means a cooperative or public utility that owns a
14transmission facility in this state and that provides transmission service in this
15state.
AB940,17,22 16(2) Commission powers and duties. (a) By June 30, 2000, if a transmission
17utility has not transferred control over its transmission facilities to an independent
18system operator that is approved by the applicable federal agency or divested, with
19approval of the applicable federal agency or the commission, its interest in its
20transmission facilities to an independent transmission owner, the commission shall,
21subject to par. (am), order the transmission utility to apply to the applicable federal
22agency to do one of the following:
AB940,17,2523 1. Transfer control of the transmission utility's transmission facilities to an
24independent system operator that has received the approval of the federal agency to
25operate in a region.
AB940,18,3
12. If the federal agency has not approved an independent system operator
2specified in subd. 1., transfer control over the transmission utility's transmission
3facilities to an independent system operator that is intended to operate in a region.
AB940,18,74 3. If the transmission utility does not, or is not able to, to the satisfaction of the
5commission, transfer its transmission facilities to an independent system operator
6specified in subd. 2., divest the transmission utility's interest in its transmission
7facilities to an independent transmission owner.
AB940,18,98 (am) The commission may waive the requirement to issue an order against a
9transmission utility under par. (a) if each of the following is satisfied:
AB940,18,1310 1. The transmission utility has filed an application with the applicable federal
11agency for approval to transfer control of its transmission facilities to an independent
12system operator or to divest its interest in its transmission facilities to an
13independent transmission owner.
AB940,18,2014 2. The commission finds that the waiver is reasonably expected to result in a
15more expeditious transfer of control to an independent system operator or
16divestment of interest to an independent transmission owner than would result
17under an order issued under par. (a). In making a finding under this subdivision, the
18commission shall consider the need for a reasonably prompt transfer of control or
19divestment of interest that ensures, to the maximum extent practicable, the
20continued reliability of the electric transmission system in this state.
AB940,18,2421 (b) By June 30, 2000, the commission shall order each transmission utility in
22this state that is a public utility to identify and separately account for the cost of
23retail transmission service and to take all retail transmission service from an
24independent system operator or independent transmission owner.
AB940,19,2
1(c) The commission has jurisdiction to do all things necessary and convenient
2to enforce the requirements of this section.
AB940,19,14 3(3) Independent system operator and independent transmission owner
4duties.
(a) If an independent system operator that has control over transmission
5facilities in this state determines that there is a need for additional transmission
6facilities in this state, the independent system operator shall order any transmission
7utility that has transferred control over transmission facilities to the independent
8system operator to, subject to the requirements of ss. 196.49 and 196.491 (3), expand
9the portion of the electric transmission system that is in this state and under the
10control of the independent system operator or construct additional transmission
11facilities in that portion of the transmission system. An independent system
12operator may issue an order under this paragraph only if a transmission utility that
13is subject to the order is reasonably compensated for the costs incurred in complying
14with the order.
AB940,19,2115 (bm) If each of the transmission utilities in the transmission area that are
16public utilities have not transferred control over their transmission facilities to the
17same independent system operator, the independent system operator that controls
18transmission facilities in the transmission area shall ensure that, by itself or
19pursuant to a long-term agreement with another independent system operator, the
20transmission facilities in the transmission area are planned, constructed, operated,
21maintained and controlled as a single transmission system.
AB940,20,322 (b) If an independent transmission owner determines that there is a need for
23additional transmission facilities in a portion of the electric transmission system of
24this state that consists of transmission facilities the interest in which has been
25divested to the independent transmission owner by a transmission utility, the

1independent transmission owner shall, subject to the requirements of ss. 196.49 and
2196.491 (3), expand that portion of the electric transmission system or construct
3additional transmission facilities in that portion.
AB940,20,64 (c) An independent transmission owner or an independent system operator
5shall operate transmission facilities over which it has control in a manner that does
6each of the following:
AB940,20,97 1. To the maximum extent practicable, eliminates advantages in electric
8generation, wholesale and retail markets that are otherwise related to ownership,
9control or operation of transmission facilities over which it has control.
AB940,20,1110 2. Satisfies the reasonable needs of transmission users in this state for reliable,
11low-cost and competitively priced electric service.
AB940,20,15 12(4) Transmission utilities. (a) A transmission utility may not transfer control
13over, or divest its interest in, its transmission facilities to an independent system
14operator or independent transmission owner unless, to the satisfaction of the
15commission, each of the following requirements is satisfied:
AB940,20,1916 1. The independent system operator or independent transmission owner is the
17sole provider of all transmission service to all users of its transmission system in this
18state, including the provision of retail transmission service to users that are public
19utilities.
AB940,20,2320 2. The independent system operator or independent transmission owner has
21authority over transmission facilities that is sufficient for the independent system
22operator or independent transmission owner to ensure the reliability of its
23transmission system.
AB940,20,2524 3. The independent system operator or independent transmission owner has
25sufficient authority to carry out the duties specified in sub. (3).
AB940,21,5
1(b) A transmission utility that transfers control over its transmission facilities
2to an independent system operator shall, subject to the approval of the applicable
3federal agency, provide reasonable and cost-effective construction, operation and
4maintenance services to the independent system operator that are required for
5operation of the transmission facilities.
AB940, s. 31 6Section 31. 196.491 (title) of the statutes is amended to read:
AB940,21,8 7196.491 (title) Advance planning of electric Strategic energy
8assessment; electric
generating facilities and transmission lines.
AB940, s. 32 9Section 32. 196.491 (1) (a) of the statutes is repealed.
AB940, s. 33 10Section 33. 196.491 (1) (am) of the statutes is created to read:
AB940,21,1111 196.491 (1) (am) "Affiliated interest" has the meaning given in s. 196.52 (1).
AB940, s. 34 12Section 34. 196.491 (1) (bm) of the statutes is created to read:
AB940,21,1513 196.491 (1) (bm) "Cooperative association" means a cooperative association
14organized under ch. 185 for the purpose of generating, distributing or furnishing
15electric energy at retail or wholesale to its members only.
AB940, s. 35 16Section 35. 196.491 (1) (d) of the statutes is amended to read:
AB940,21,2417 196.491 (1) (d) "Electric utility" means any public utility, as defined in s.
18196.01, which is involved in the generation, distribution and sale of electric energy,
19and any corporation, company, individual or association, and any cooperative
20association organized under ch. 185 for the purpose of generating, distributing or
21furnishing electric energy at retail or wholesale to its members only
, which owns or
22operates, or plans within the next 10 3 years to construct, own or operate, bulk
23electric generating facilities, large electric generating
facilities or high-voltage
24transmission lines
in the state.
AB940, s. 36 25Section 36. 196.491 (1) (e) of the statutes is amended to read:
AB940,22,2
1196.491 (1) (e) "Facility" means a bulk electric generating facility, a large
2electric generating facility or a high-voltage transmission line.
AB940, s. 37 3Section 37. 196.491 (1) (g) of the statutes is amended to read:
AB940,22,64 196.491 (1) (g) "Large electric generating facility" means electric generating
5equipment and associated facilities designed for nominal operation at a capacity of
6between 12,000 and 300,000 kilowatts 100 megawatts or more.
AB940, s. 38 7Section 38. 196.491 (1) (w) of the statutes is created to read:
AB940,22,108 196.491 (1) (w) "Wholesale merchant plant" means electric generating
9equipment and associated facilities located in this state that do not provide service
10to any retail customer and that are owned and operated by any of the following:
AB940,22,1211 1. Subject to the approval of the commission under sub. (3m) (a), an affiliated
12interest of a public utility.
AB940,22,1313 2. A person that is not a public utility.
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