AB545: Bill Text

Power purchase contracts. The bill requires an electric utility to obtain the PSC's approval before entering into a contract for the purchase of electric power. The PSC must promulgate rules for such approvals. In addition, the PSC may not approve such a contract unless the contract satisfies a reasonable need of the public for an adequate supply of electric energy that is identified in the most recently prepared strategic energy plan. These requirements do not apply to a municipal electric utility or a cooperative association.

Prohibition on recovering certain costs in rates. The bill prohibits the PSC from allowing an electric utility to recover in rates charged to customers any costs associated with a large electric generating facility, high-voltage transmission line, or power purchase contract unless the PSC has previously identified the facility, line, or contact in a strategic energy plan. However, the prohibition does not apply if the utility demonstrates to the PSC's satisfaction that an unforeseen emergency prevented such identification.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

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

AB545, s. 1 Section 1. 196.03 (7) of the statutes is created to read:

AB545,4,8 196.03 (7) The commission may not authorize a public utility to recover in rates charged to customers any costs associated with a facility, as defined in s. 196.491 (1) (e), or a power purchase contract unless the commission has previously identified the facility or power purchase contract in a strategic energy plan under s. 196.491 (2) (ac) 1. or 11. This subsection does not apply if the public utility demonstrates to the satisfaction of the commission that an unforeseen emergency has prevented the previous identification of the facility or power purchase contract.

AB545, s. 2 Section 2. 196.491 (title) of the statutes is amended to read:

AB545,4,11 196.491 (title) Strategic energy assessment plan; electric generating facilities and transmission lines.

AB545, s. 3 Section 3. 196.491 (1) (d) of the statutes is amended to read:

AB545,4,17 196.491 (1) (d) "Electric utility" means any public utility, as defined in s. 196.01, which is involved in the generation, distribution and sale of electric energy, and any corporation, company, individual or association, and any cooperative association, which owns or operates, or plans within the next 3 5 or 10 years to construct, own or operate, facilities in the state.

AB545, s. 4 Section 4. 196.491 (2) (title) of the statutes is amended to read:

AB545,4,19 196.491 (2) (title) Strategic energy assessment plan.

AB545, s. 5 Section 5. 196.491 (2) (a) (intro.) of the statutes is renumbered 196.491 (2) (a) and amended to read:

AB545,5,6 196.491 (2) (a) The commission shall prepare a an annual or biennial strategic energy assessment plan that evaluates the adequacy and reliability of the state's current and future electrical supply. The strategic energy assessment shall do all of the following: and the state's future electrical supply over the next 5 and 10 years.

AB545, s. 6 Section 6. 196.491 (2) (a) 3. of the statutes is renumbered 196.491 (2) (ac) 1. and amended to read:

AB545,5,11 196.491 (2) (ac) 1. Identify and describe the large electric generating facilities and high-voltage transmission lines on which an each electric utility plans to commence construction within 3 years during the 5-year period.

AB545, s. 7 Section 7. 196.491 (2) (a) 3g. of the statutes is renumbered 196.491 (2) (ac) 3m.

AB545, s. 8 Section 8. 196.491 (2) (a) 3m. of the statutes is repealed.

AB545, s. 9 Section 9. 196.491 (2) (a) 3r., 4., 7., 9., 10., 11., 12. and 13. of the statutes are renumbered 196.491 (2) (ac) 3s., 4., 5., 6., 7., 8., 9. and 10.

AB545, s. 10 Section 10. 196.491 (2) (ac) (intro.) of the statutes is created to read:

AB545,5,19 196.491 (2) (ac) (intro.) In evaluating the state's future electrical supply over the next 5 years, the commission shall do each of the following in a plan under par. (a):

AB545, s. 11 Section 11. 196.491 (2) (ac) 3e. of the statutes is created to read:

AB545,5,22 196.491 (2) (ac) 3e. Identify and describe wholesale merchant plants on which any person plans to commence construction within the 5-year period.

AB545, s. 12 Section 12. 196.491 (2) (ac) 11. to 14. of the statutes are created to read:

AB545,5,25 196.491 (2) (ac) 11. Identify and describe the power purchase contracts that each electric utility proposes to enter into during the 5-year period.

AB545,6,2 12. Explain how each electric utility will satisfy reliability needs at the least cost.

AB545,6,6 13. Identify the specific resources and facilities that each electric utility will use to satisfy system load and reserve requirements. A resource or facility may not be identified unless it is consistent with the mix of resources and facilities determined by the commission in par. (ae) 6.

AB545,6,9 14. Identify the reasonable needs of the public for an adequate supply of electric energy that an electric utility must show for purposes of satisfying subs. (3) (d) 2. and (3e).

AB545, s. 13 Section 13. 196.491 (2) (ae) of the statutes is created to read:

AB545,6,13 196.491 (2) (ae) In evaluating the state's future electrical supply over the next 10 years, the commission shall perform the acts described in par. (ac) 3m. to 10. and do each of the following in a plan under par. (a):

AB545,6,17 1. Identify and describe large electric generating facilities and high-voltage transmission lines, other than those facilities and lines identified and described under par. (ac) 1., on which each electric generating facility plans to commence construction during the 10-year period.

AB545,6,20 2. Identify and describe wholesale merchant plants, other than those plants identified and described under par. (ac) 3e., on which any person plans to commence construction within the 10-year period.

AB545,6,22 3. Evaluate the projected trends for generation, transmission, load, and conservation.

AB545,6,23 4. Forecast the performance of electricity markets.

AB545,7,4 5. Evaluate the economic impacts, projected costs, including costs of externalities, and environmental impacts of the facilities identified in subds. 1. and 2. and par. (ac) 1. and 3e., the current system for supplying electricity, and alternatives to that system. In evaluating economic impacts, the commission shall consider the impacts in this state of obtaining fuels and purchasing electric power from out-of-state sources.

AB545,7,11 6. Determine the mix of resources and facilities that is necessary to satisfy the projected demand for electricity, as well as the timing for initiating the utilization of those resources and facilities. In making this determination, the commission shall consider renewable and nonrenewable resources and traditional and nontraditional sources of electric generation. The commission shall also consider alternatives to electric generation, including investments in energy conservation to the maximum extent that is reasonable.

AB545, s. 14 Section 14. 196.491 (2) (ag) of the statutes is amended to read:

AB545,7,15 196.491 (2) (ag) The commission shall promulgate rules that establish procedures and requirements for reporting information that is necessary for the commission to prepare strategic energy assessments plans under par. (a).

AB545, s. 15 Section 15. 196.491 (2) (b) (intro.) of the statutes is amended to read:

AB545,7,21 196.491 (2) (b) (intro.) On or before July 1, 2000, and on or before July 1 of each even-numbered year thereafter No later than July 1 of the year in which the commission prepares a strategic energy plan under par. (a), the commission shall issue a draft of the biennial strategic energy assessment that it prepares under par. (a) plan to each of the following:

AB545, s. 16 Section 16. 196.491 (2) (b) 10. of the statutes is amended to read:

AB545,7,24 196.491 (2) (b) 10. The clerk of each city, village, town and county that, as determined by the commission, is affected by the assessment plan.

AB545, s. 17 Section 17. 196.491 (2) (e) of the statutes is amended to read:

AB545,8,4 196.491 (2) (e) Any state agency, as defined in s. 560.9810 (1), county, municipality, town or person may submit written comments to the commission on a strategic energy assessment plan within 90 days after copies of the draft are issued under par. (b).

AB545, s. 18 Section 18. 196.491 (2) (f), (g) and (gm) of the statutes are amended to read:

AB545,8,11 196.491 (2) (f) Section 1.11 (2) (c) shall not apply to a strategic energy assessment plan prepared under par. (a) but the commission shall prepare a single environmental assessment on the strategic energy assessment plan, which shall include a discussion of generic issues and environmental impacts. The commission shall make the environmental assessment available to the public at least 30 days prior to the hearing under par. (g).

AB545,9,2 (g) No sooner than 30 and no later than 90 days after copies of the draft are issued under par. (b), the commission shall hold a hearing on the draft which may not be a hearing under s. 227.42 or 227.44. The hearing shall be held in an administrative district, established by executive order 22, issued August 24, 1970, which the commission determines will be significantly affected by facilities on which an electric utility plans to commence construction within 3 5 years. The commission may thereafter adjourn the hearing to other locations or may conduct the hearing by interactive video conference or other electronic method. Notice of such hearing shall be given by class 1 notice, under ch. 985, published in the official state newspaper and such other regional papers of general circulation as may be designated by the commission. At such hearing the commission shall briefly describe the strategic energy assessment plan and give all interested persons an opportunity, subject to reasonable limitations on the presentation of repetitious material, to express their views on any aspect of the strategic energy assessment plan. A record of the hearing shall be made and considered by the commission as comments on the strategic energy assessment plan under par. (e).

AB545,9,7 (gm) Based on comments received on a draft, the commission shall prepare a final strategic energy assessment plan within 90 days after a hearing under par. (g). The commission shall provide copies of the final strategic energy assessment plan to any state agency, county, municipality, town or other person who submitted comments on the draft under par. (e) and to the persons specified in par. (b).

AB545, s. 19 Section 19. 196.491 (3) (d) 2. of the statutes is amended to read:

AB545,9,11 196.491 (3) (d) 2. The proposed facility satisfies the reasonable needs of the public for an adequate supply of electric energy. This subdivision does not apply to a wholesale merchant plant need identified under sub. (2) (ac) 14.

AB545, s. 20 Section 20. 196.491 (3) (d) 3g. of the statutes is created to read:

AB545,9,15 196.491 (3) (d) 3g. The proposed facility does not have higher costs or greater environmental impacts than those for other facilities evaluated under sub. (2) (ae) 5. in the strategic energy plan most recently prepared by the commission.

AB545, s. 21 Section 21. 196.491 (3) (dm) of the statutes is amended to read:

AB545,9,20 196.491 (3) (dm) In making a determination required under par. (d), except for a determination under par. (d) 2. or 3g., the commission may not consider a factual conclusion in a strategic energy assessment plan unless the conclusion is independently corroborated in the hearing under par. (b).

AB545, s. 22 Section 22. 196.491 (3) (g) of the statutes is amended to read:

AB545,9,25 196.491 (3) (g) The commission shall take final action on an application filed under par. (a) 1. within 180 360 days after the application is determined or considered to be complete under par. (a) 2. If the commission fails to take final action within the 180-day period, the commission is considered to have issued a certificate of public convenience and necessity with respect to the application, unless the commission, within the 180-day period, petitions the circuit court for Dane County for an extension of time for taking final action on the application and the court grants an extension. Upon a showing of good cause, the court may extend the 180-day period for no more than an additional 180 days . If the commission fails to take final action within the extended period, the commission is considered to have issued a certificate of public convenience and necessity with respect to the application.

AB545, s. 23 Section 23. 196.491 (3e) of the statutes is created to read:

AB545,10,12 196.491 (3e) Power purchase contracts. (a) In this subsection, "electric utility" does not include a public utility that is a city, village, or town or is wholly owned or operated by a city, village or town; a municipal electric company, as defined in s. 66.0825 (3) (d); or a cooperative association.

AB545,10,18 (b) An electric utility may not enter into a contract for the purchase of electric power without the prior approval of the commission. The commission shall promulgate rules establishing requirements and procedures for applying for such approval. The commission may not approve such a contract unless the contract satisfies the need identified under sub. (2) (ac) 14. in the strategic energy plan most recently prepared by the commission under sub. (2) (a).

AB545, s. 24 Section 24. Effective dates. This act takes effect on the day after publication, except as follows:

AB545,10,23 (1) The treatment of sections 196.03 (7) and 196.491 (3) (d) 2. and 3g., (dm), and (g) and (3e) of the statutes takes effect on the first day of the 19th month beginning after publication.

AB545,10,24 (End)