LRB-4009/1
MDK&PJH:kjf&wlj:rs
2011 - 2012 LEGISLATURE
February 6, 2012 - Introduced by Senators Zipperer, Holperin, Galloway, Hansen,
King, Lasee, Olsen, Shilling
and Taylor, cosponsored by Representatives
Klenke, Zepnick, Ballweg, Bies, Brooks, Danou, Endsley, Hintz, Jacque,
Kestell, Krug, T. Larson, Marklein, Molepske Jr, Mursau, Nerison, Nygren,
A. Ott, J. Ott, Petersen, Petrowski, Petryk, Rivard, Staskunas, Tauchen,
Tiffany
and Weininger. Referred to Committee on Judiciary, Utilities,
Commerce, and Government Operations.
SB428,2,2 1An Act to renumber 196.395 and 196.491 (3m) (e); to renumber and amend
215.79, 134.40 (title), 134.40 (1), 134.40 (2) and 196.81 (3); to amend 196.02 (7),
3196.378 (1) (fm), 196.378 (3) (a) 1., 196.378 (3) (a) 1m., 196.378 (3) (a) 2., 196.395
4(title), 196.40, 196.491 (3m) (a) (intro.), 196.491 (3m) (c) 3. (intro.), 196.50 (2)
5(i), 196.52 (3) (b) 1., 196.795 (6m) (c), 227.48 (1) and 230.08 (2) (mL); to repeal
6and recreate
196.491 (3m) (e) (title); and to create 15.79 (2), 196.378 (2) (bm),
7196.395 (2), 196.49 (5g), 196.49 (5r), 196.491 (3m) (e) 2., 196.52 (3) (b) 1m.,
8196.52 (3) (d), 196.81 (3) (b), 941.40 (2), 941.40 (3) and 941.40 (4) (b) of the
9statutes; relating to: commissioners of the Public Service Commission;
10notices, orders, and determinations of the commission; certificates of authority
11issued by the commission; approval of contracts by the commission; electricity
12sales from certain wholesale merchant plants; public utility removal of certain

1electric service lines; renewable resource credits; tampering or interfering with
2utility equipment; granting rule-making authority; and providing penalties.
Analysis by the Legislative Reference Bureau
PSC notices, orders, and determinations. Under current law, the Public
Service Commission (PSC) is allowed to initiate, investigate, and order a hearing at
its discretion upon such notice as the PSC deems proper. This bill allows the PSC
to provide the notice by personal delivery, mail, electronic mail, or any other
reasonable method. The bill also allows the PSC to provide notice in such manner
in contested cases, which are administrative proceedings involving parties whose
interests are determined or adversely affected by the PSC. Current law generally
requires notice for a contested case to be provided by mail.
Also under current law, unless the PSC specifies a different effective date, the
PSC's orders and determinations take effect 20 days after the PSC files and serves
an order or determination on the parties to the proceeding in which the PSC made
the order or determination or on the parties' attorneys. This bill provides that an
order or determination takes effect on the day after the order or determination is filed
and served, unless the PSC specifies a different effective date. Current law also
specifies that service must be done by personal delivery or mail. This bill allows
service to be done by personal delivery, mail, electronic mail, or any other method
that the PSC determines is likely to reach the parties or attorneys.
Firm sales of electricity to affiliates. Current law generally prohibits an
affiliated interest from making a firm sale of electricity of three years or more to a
public utility with which the affiliated interest is affiliated. Under current law, an
affiliated interest is considered to be affiliated with a public utility if the affiliated
interest has specified ownership or control interests in common with the public
utility. Current law defines "firm sale" as a sale in which electricity is intended to
be available to a purchaser at all times during a specified period on an
uninterruptible basis. This bill creates an exception to the prohibition for a firm sale
from an affiliated interest's wholesale merchant plant located in Adams or Juneau
county to an affiliated public utility, but only if the affiliated public utility owned,
operated, or controlled the affiliated interest before January 1, 2012. Under current
law, which the bill does not affect, a "wholesale merchant plant" is defined, in part,
as an electric generating plant that does not provide retail electric service.
Contracts or arrangements with affiliates. Current law generally requires
the PSC to approve contracts or arrangements between public utilities and their
affiliated interests. An exception to the requirement applies if the amount of
consideration involved in the contract or arrangement does not exceed $25,000 or 5
percent of the equity of the public utility, whichever is smaller. This bill revises the
exception so that PSC approval is not required if the amount of consideration does
not exceed $250,000 or 5 percent of the equity, whichever is smaller. In addition,
beginning in 2014 and biennially thereafter, the bill requires the PSC to adjust the
$250,000 amount based on inflation. Also, if PSC approval is required, the bill

requires the PSC to take final action on an application for approval within deadlines
that depend on whether the PSC holds a hearing on the application. If no hearing
is held, the PSC must take final action within 90 days after issuing a notice opening
a docket on the application. If a hearing is held, the PSC must take final action
within 180 days after issuing a notice of the hearing, except that, for good cause, the
chairperson of the PSC may extend that deadline by an additional 180 days. If the
PSC fails to take action within the foregoing deadlines, the bill provides that the PSC
is considered to have approved the application.
Certificates for certain projects. Current law generally requires a public
utility to obtain a certificate from the PSC or apply with an applicable order or rule
of the PSC before the public utility may engage in certain construction, installation,
or improvement projects. This bill requires the PSC to take final action on an
application for such a certificate or made pursuant to such an order or rule within
deadlines that depend on whether the PSC holds a hearing on the application. If no
hearing is held, the PSC must take final action within 90 days after issuing a notice
opening a docket on the application, except that, for good cause, the chairperson of
the PSC may extend the deadline by an additional 90 days. If a hearing is held, the
PSC must take final action within 180 days after issuing a notice of the hearing,
except that, for good cause, the chairperson of the PSC may extend the deadline by
an additional 180 days. If the PSC fails to take action within the foregoing deadlines,
the bill provides that the PSC is considered to have approved the application.
The bill also creates exemptions from the requirement for a public utility to
obtain a certificate or approval prior to commencing certain proposed construction,
installation, or improvement projects. The exemptions are based on the estimated
gross cost of the project and the type of public utility that proposes the project. For
a water public utility or combined water and sewer public utility, the exemption
applies if the estimated cost does not exceed $250,000 or 25 percent of the utility's
operating revenues in the prior year, whichever is less. For a natural gas public
utility, the exemption applies if the estimated cost does not exceed $2,500,000 or 4
percent of the utility's natural gas operating revenues in the prior year, whichever
is less. For an electric utility whose electric operating revenues in the prior year were
less than $5,000,000, the exemption applies if the estimated cost does not exceed
$250,000. For an electric public utility whose electric operating revenues in the prior
year were $5,000,000 or more and less than $250,000,000, the exemption applies if
the estimated cost does not exceed 4 percent of those operating revenues. For an
electric public utility whose electric operating revenues in the prior year were
$250,000,000 or more, the exemption applies if the cost estimate does not exceed
$10,000,000. Beginning on May 1, 2014, and on May 1 of each successive
even-numbered year thereafter, the bill requires the PSC to adjust the foregoing
dollar amounts based on changes in utility construction costs.
Removal of certain electric and steam lines. Current law generally
prohibits a public utility from abandoning or discontinuing any line or extension of
service without the prior approval of the PSC. The prohibition does not apply to a
public utility that provides telecommunications service. This bill creates another
exception for a public utility's removal, at the request of a customer, of the customer's

electric service drop or electric or steam service lateral, including any primary
voltage or steam line that is used exclusively to serve the customer.
Renewable portfolio standards. Under current law, an electric utility or
retail electric cooperative (electric provider) is subject to certain requirements for
ensuring that, in a given year, a specified percentage of the electricity that the
electric provider sells to retail customers or members is derived from renewable
resources. The requirements are commonly referred to as renewable portfolio
standards (RPSes), and current law refers to the foregoing percentage as an electric
provider's "renewable energy percentage" (REP). Current law allows an electric
provider to create a credit based on the amount of electricity derived from renewable
resources that the electric provider provides to its customers or members in a year
and that exceeds the RPS for that year. Current law refers to such a credit as a
"renewable resource credit." Current law also allows the PSC to promulgate rules
that allow an electric provider to create a renewable resource credit based on the use
of specified types of energy applications by the provider or a customer or member of
the provider. Current law allows an electric provider to include renewable resource
credits in the electric provider's REP to help the provider comply with an RPS, or sell
renewable resource credits to another electric provider for inclusion in the buyer's
REP to help the buyer comply with an RPS.
This bill specifies that an electric provider creates one renewable resource
credit for each megawatt hour of renewable energy the provider sells to customers
or members in a year. If the amount of such credits exceeds that electric provider's
REP for a year, the bill allows the electric provider to bank the credit or sell the credit
to another electric provider. The bill also allows for the banking or sale of portions
of credits. Although "banking" is not defined, the term is understood to refer to
retaining a credit for future use. Also, for purposes of determining compliance with
an RPS for a particular year, the bill allows an electric provider to use the renewable
resource credits created from renewable energy that the provider sold to customers
or members in that year. The bill also allows an electric provider to use other
renewable resource credits. The bill requires an electric provider to annually retire
renewable resource credits that are used to comply with an RPS. In addition, the bill
requires the PSC to promulgate rules that allow a customer or member of an electric
provider to create the renewable resource credit described above that is based on the
use of specified energy applications.
PSC commissioners. Current law prohibits a commissioner of the PSC from
serving on or under any committee of a political party. The bill further prohibits a
commissioner from doing any of the following: 1) being a candidate for public office
in any election; 2) directly or indirectly soliciting or receiving any contribution for
any political purpose from any person within or outside of the state; or 3) acting as
an officer or manager for any candidate, political party, or committee organized to
promote the candidacy of any person for any public office.
Tampering or interfering with utility equipment. Under current law, a
person who removes or changes a building or other structure to which a telegraph,
telecommunications, electric light, or electric power line is attached in a way that
destroys or disturbs the wire, pole, or other property of a telegraph,

telecommunications, or electric company without giving at least 24 hours' notice to
the company generally may be imprisoned up to 30 days and fined up to $50. A
person who breaks down, interrupts, or moves any telegraph, telecommunications,
electric light, or electric power line or wire, pole, or other property of a telegraph,
telecommunications, or electric company generally may be imprisoned up to three
months and fined up to $100.
Under the bill, a person who commits any of those acts is guilty of a Class B
misdemeanor, and may be imprisoned for up to 90 days, fined up to $1,000, or both.
Additionally, under the bill, a person who intentionally makes or causes to be made
a physical electrical connection with any wire, cable, conductor, ground, equipment,
facility, or other property of any telecommunications or electric company is guilty of
a Class A misdemeanor, and may be imprisoned for up to nine months, fined up to
$10,000,000, or both.
The bill clarifies that a telegraph, telecommunications, or electric company
may include a cooperative organized under the laws of this state and exempts from
criminal liability a person who is acting with the permission of the telegraph,
telecommunications, or electric company or cooperative or with the permission of the
person who owns the land on which the affected property is located.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report concerning the proposed penalty and the costs or savings that are likely to
result if the bill is enacted.
For further information see the state 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:
SB428, s. 1 1Section 1. 15.79 of the statutes is renumbered 15.79 (1) and amended to read:
SB428,6,22 15.79 (1) There is created a public service commission. No member of the
3commission may have a financial interest in a railroad, water carrier, or public
4utility. If any member voluntarily becomes so interested, the member's office shall
5become vacant. If the member involuntarily becomes so interested, the member's
6office shall become vacant unless the member divests himself or herself of the
7interest within a reasonable time. No commissioner may serve on or under any

1committee of a political party.
Each commissioner shall hold office until a successor
2is appointed and qualified.
SB428, s. 2 3Section 2. 15.79 (2) of the statutes is created to read:
SB428,6,54 15.79 (2) A commissioner of the public service commission may not do any of
5the following:
SB428,6,66 (a) Be a candidate for public office in any election.
SB428,6,97 (b) Directly or indirectly solicit or receive any contribution, as defined in s.
811.01 (6), for any political purpose, as defined in s. 11.01 (16), whatever, from any
9person within or outside of the state.
SB428,6,1110 (c) Act as an officer or manager for any candidate, political party, or committee
11organized to promote the candidacy of any person for any public office.
SB428,6,1212 (d) Serve on or under any committee of a political party.
SB428, s. 3 13Section 3. 134.40 (title) of the statutes is renumbered 941.40 (title) and
14amended to read:
SB428,6,16 15941.40 (title) Injury to wires by removal of building, etc.; tampering
16with telecommunication or electric wires.
SB428, s. 4 17Section 4. 134.40 (1) of the statutes is renumbered 941.40 (1) and amended
18to read:
SB428,7,919 941.40 (1) Except as provided under sub. (2) (4), any person having the right
20so to do who shall willfully remove or change intentionally removes or changes any
21building or other structure or any timber, standing or fallen, to which any telegraph,
22telecommunications, electric light, or electric power lines or wires are in any manner
23attached, or cause causes the same to be done, which shall destroy, disturb or injure
24and consequently destroys, disturbs, or injures the wires, poles, or other property of
25any telegraph, telecommunications, electric light, or electric power company,

1including a cooperative association organized under ch. 185
, transacting business in
2this state, without first giving to such the company, at its office nearest to such the
3place of injury, at least 24 hours' previous notice thereof, shall be imprisoned not
4more than 30 days or fined not more than $50. And any person who shall unlawfully
5break down, interrupt or remove any telegraph, telecommunications, electric light
6or electric power line or wire or destroy, disturb, interfere with or injure the wires,
7poles or other property of any telegraph, telecommunications, electric light or electric
8power company in this state shall be imprisoned not more than 3 months or fined not
9more than $100
is guilty of a Class B misdemeanor.
SB428, s. 5 10Section 5. 134.40 (2) of the statutes is renumbered 941.40 (4) (a) and amended
11to read:
SB428,7,1412 941.40 (4) (a) This section does Subsections (1) and (2) do not apply to any
13person who is lawfully using a land survey marker for land surveying purposes no
14more than 30 inches below ground level.
SB428, s. 6 15Section 6. 196.02 (7) of the statutes is amended to read:
SB428,7,2116 196.02 (7) Commission initiative. In any matter within its jurisdiction,
17including, but not limited to, chs. 197 and 201 and this chapter, the commission may
18initiate, investigate, and order a hearing at its discretion upon such notice as it
19deems proper. The commission may use personal delivery, mail, electronic mail, or
20any other reasonable method to provide notice, including notice for a contested case
21hearing, notwithstanding s. 227.44 (1).
SB428, s. 7 22Section 7. 196.378 (1) (fm) of the statutes is amended to read:
SB428,8,223 196.378 (1) (fm) "Renewable energy percentage" means, with respect to an
24electric provider for a particular year, the percentage that results from dividing the

1sum of the megawatt hours represented by the following by the total amount of
2electricity that the electric provider sold to retail customers or members in that year:
SB428,8,43 1. The renewable resource credits created from the electric provider's total
4renewable energy in that year.
SB428,8,75 2. The Any renewable resource credits created or purchased by the electric
6provider, if any,
in addition to the renewable resource credits specified in subd. 1. that
7the electric provider elects to use in that year.
SB428, s. 8 8Section 8. 196.378 (2) (bm) of the statutes is created to read:
SB428,8,119 196.378 (2) (bm) Each electric provider shall annually retire renewable
10resource credits sufficient to satisfy the electric provider's renewable energy
11percentage required under par. (a) 2.
SB428, s. 9 12Section 9. 196.378 (3) (a) 1. of the statutes is amended to read:
SB428,9,613 196.378 (3) (a) 1. Each megawatt hour of an electric provider's total renewable
14energy creates one renewable resource credit for the electric provider.
Subject to
15subd. 2., an electric provider that provides total renewable energy to its retail electric
16customers or members in excess of the percentages specified in
exceeds its renewable
17energy percentage required under
sub. (2) (a) 2., or that satisfies the requirements
18specified in rules promulgated under subd. 1m.,
may, in the applicable year, create
19a
bank any excess renewable resource credit and credits or any portion of any excess
20renewable resource credit for use in a subsequent year or
sell any excess renewable
21resource credits or any portion of any excess renewable resource credit
to any other
22electric provider the renewable resource credit or a portion of the renewable resource
23credit
at any negotiated price. An electric provider that creates or purchases a
24renewable resource credit or portion may use the credit or portion, as provided under
25par. (c), to establish compliance with sub. (2) (a) 2. The commission shall promulgate

1rules that establish requirements for the creation and use of a renewable resource
2credit created on or after January 1, 2004, including calculating the amount of a
3renewable resource credit, and for the tracking of renewable resource credits by a
4regional renewable resource credit tracking system. The rules shall specify the
5manner for aggregating or allocating credits under this subdivision or sub. (2) (b) 4.
6or 5.
SB428, s. 10 7Section 10. 196.378 (3) (a) 1m. of the statutes is amended to read:
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