196.50(2)(e)1.1. Pending the determination on an application for a certificate of authority or an amended certificate of authority, the commission may issue, without notice and hearing, a temporary license for a period not to exceed one year and may temporarily exempt the applicant from requirements of this chapter identified in
s. 196.195 (5) if the exemption is in the public interest. The issuance of a temporary license does not bind the commission in the final determination on the application.
196.50(2)(e)2.
2. An application for a certificate of authority or amended certificate of authority that is filed after June 30, 1994, shall identify the geographical area to be served and the classification for which it is filed. The application shall be served by the applicant on all affected telecommunications providers.
196.50(2)(f)
(f) The commission shall issue a certificate of authority or an amended certificate of authority if it finds, after notice and opportunity for hearing, that the applicant possesses sufficient technical, financial and managerial resources to provide telecommunications service to any person within the identified geographic area. In making this determination, the commission shall consider the factors identified in
s. 196.03 (6). The commission may order the applicant to satisfy any conditions that the commission considers to be necessary to protect the public interest, including structural safeguards.
196.50(2)(g)1.1. The authority of every telecommunications utility with a certificate under this subsection is statewide and nonexclusive. The existence of or issuance of a certificate of authority or amended certificate of authority to any telecommunications utility and the approval of any tariff for the telecommunications utility shall not preclude the commission from authorizing additional telecommunications utilities to provide the same or equivalent service or to serve the same geographical area as any previously authorized utility or approved tariff.
196.50(2)(g)2.
2. A telecommunications utility's obligation to serve is defined by the map that the utility files under
par. (b).
196.50(2)(g)3.
3. The commission shall establish by rule classes of certificates of authority based on services. The commission shall notify each telecommunications utility of its classification.
196.50(2)(h)
(h) After notice and opportunity for hearing, the commission may alter or amend any telecommunications utility's certificate of authority to provide telecommunications services in order to achieve or maintain the availability of reasonably adequate service at just and reasonable rates throughout the state.
196.50(3)
(3) Second utility. Any certificate, permit, license or franchise issued to a public utility, other than a telecommunications utility, which contains any term interfering with the existence of a 2nd public utility, other than a telecommunications utility, is amended to permit any municipality to grant a franchise for the operation of the 2nd public utility.
196.50(4)
(4) Municipality restrained. No municipality may construct any public utility if there is in operation under an indeterminate permit in the municipality a public utility engaged in similar service other than a telecommunications service, unless it secures from the commission a declaration, after a public hearing of all parties interested, that public convenience and necessity require the municipal public utility.
196.50(5)
(5) Injunction. Pending investigation and finding by the commission as to whether public convenience and necessity require a 2nd public utility, the furnishing of any public utility service, other than a telecommunications service, in any municipality contrary to the provisions of this section may be enjoined at the suit of the state or of any public utility having an interest in the issue.
196.50(6)
(6) No denial on federal financing. No certificate of convenience and necessity or permit to any public utility under
ss. 196.49 and
196.50 shall be denied because of the amount of the public utility's notes, bonds or other evidences of indebtedness issued to the United States in connection with loans to rural telecommunications utilities made under the rural electrification act of 1936,
7 USC 901 to
950aaa-5, as amended, or by reason of the ratio of such indebtedness to the value of the public utility's property or to its other classes of securities.
196.50(7)(a)(a) This subsection applies to any telecommunications utility that is restricted under federal law or under any consent decree approved by a federal district court.
196.50(7)(b)
(b) Upon application by a telecommunications utility subject to this subsection for a certificate to provide interlata services, the commission shall consider all of the following factors in determining whether to grant a certificate of authority:
196.50(7)(b)1.
1. Whether granting the certificate is in the public interest.
196.50(7)(b)2.
2. Whether the utility will provide interconnection to its local exchange network under reasonable terms and conditions.
196.50(7)(b)3.
3. Whether the utility will permit appropriate resale and sharing of its services.
196.50(7)(b)4.
4. Whether the utility will provide unbundled services under reasonable terms and conditions.
196.50(7)(b)6.
6. Whether competition in the interlata marketplace will be enhanced or hindered by granting the certificate.
196.50(7)(c)
(c) The commission may impose terms and conditions upon the grant of a certificate under
par. (b) that are necessary to protect the public interest and promote competition.
196.50(7)(d)
(d) The commission, after providing notice and opportunity for hearing, shall issue its decision on the application within 180 days after the filing. The time period may be extended upon agreement of the commission and the applicant.
196.50(7)(e)
(e) An applicant may not be authorized to provide interlata service before the availability of dial-1 presubscription on an intralata basis in all of its exchanges except where it is technically infeasible to offer intralata dial-1 presubscription due to the action or inaction of a switch vendor.
196.50 Cross-reference
Cross-reference: For division of service between competing utilities, see s.
197.01 (4).
196.505
196.505
Construction of chapter. 196.505(1)
(1) Nothing in this chapter may be construed to deny a foreign corporation the privilege of offering telecommunications services in this state if it has received a certificate of authority under
ch. 180 and any other authorization from the commission required under this chapter.
196.505(2)
(2) Nothing in this chapter may be construed to permit
chapter 184 or this chapter to apply differently to a foreign corporation which offers telecommunications services in this state than to a similarly situated domestic corporation which offers telecommunications services in this state.
196.505 History
History: 1985 a. 297;
1993 a. 496.
196.51
196.51
Prior permits and franchises validated. Any license, permit or franchise to own, operate, manage or control any plant or equipment for the production, transmission, delivery or furnishing of heat, light, water or power in any municipality is valid and shall not be affected by
s. 196.50 (1), if the license, permit or franchise was granted prior to April 3, 1911, to any public utility or was under consideration prior to April 3, 1911, in the governing body of any municipality at the time another public utility operating in the municipality obtained an indeterminate permit.
196.51 History
History: 1983 a. 53.
196.52
196.52
Relations with affiliated interests; definition; contracts with affiliates filed and subject to commission control. 196.52(1)(1) In this section, "person" includes but is not limited to trustees, lessees, holders of beneficial equitable interest, voluntary associations, receivers, partnerships and corporations; and "affiliated interests" means, with respect to a public utility:
196.52(1)(a)
(a) Any person owning or holding directly or indirectly 5% or more of the voting securities of the public utility.
196.52(1)(b)
(b) Any person in any chain of successive ownership of 5% or more of voting securities of the public utility.
196.52(1)(c)
(c) Every corporation 5% or more of whose voting securities is owned by any person owning 5% or more of the voting securities of the public utility or by any person in any chain of successive ownership of 5% or more of voting securities of the public utility.
196.52(1)(d)
(d) Any person who is an officer or director of the public utility or of any corporation in any chain of successive ownership of 5% or more of voting securities of the public utility.
196.52(1)(e)
(e) Any corporation operating a public utility, a railroad, or a servicing organization for furnishing supervisory, construction, engineering, accounting, legal and similar services to public utilities or railroads, which has one or more officers or one or more directors in common with the public utility, and any other corporation which has directors in common with the public utility if the number of such directors of the corporation is more than one-third of the total number of the public utility's directors.
196.52(1)(f)
(f) Any person whom the commission determines as a matter of fact after investigation and hearing to be actually exercising any substantial influence over the policies and actions of the public utility even if such influence is not based upon stockholding, stockholders, directors or officers as specified under
pars. (a) to
(e).
196.52(1)(g)
(g) Any other person whom the commission determines as a matter of fact after investigation and hearing to be actually exercising substantial influence over the policies and actions of the public utility in conjunction with one or more other persons with whom they are related by ownership, by blood or adoption or by action in concert that together they are affiliated with such public utility for the purpose of this section, even though no one of them alone is so affiliated under
pars. (a) to
(f).
196.52(1)(h)
(h) Any subsidiary of the public utility. In this paragraph, "subsidiary" means any person 5% or more of the securities of which are directly or indirectly owned by a public utility.
196.52(3)(a)(a) In this subsection, "contract or arrangement" means a contract or arrangement providing for the furnishing of management, supervisory, construction, engineering, accounting, legal, financial or similar services and any contract or arrangement for the purchase, sale, lease or exchange of any property, right, or thing, or for the furnishing of any service, property, right, or thing, other than management, supervisory, construction, engineering, accounting, legal, financial or similar services, but "contract or arrangement" does not include a contract or arrangement under which a transmission utility, as defined in
s. 196.485 (1) (i), sells or transfers securities, as defined in
s. 196.485 (1) (fe), that have been issued by a transmission company, as defined in
s. 196.485 (1) (ge). Except as provided under
par. (b), unless and until the commission gives its written approval, any contract or arrangement is not valid or effective if the contract or arrangement is made between a public utility and an affiliated interest after June 7, 1931. Every public utility shall file with the commission a verified copy of any contract or arrangement, a verified summary of any unwritten contract or arrangement, and any contract or arrangement, written or unwritten, which was in effect on June 7, 1931. The commission shall approve a contract or arrangement made or entered into after June 7, 1931, only if it shall clearly appear and be established upon investigation that it is reasonable and consistent with the public interest. The commission may not approve any contract or arrangement unless satisfactory proof is submitted to the commission of the cost to the affiliated interest of rendering the services or of furnishing the property or service to each public utility or of the cost to the public utility of rendering the services or of furnishing the property or service to each affiliated interest. No proof is satisfactory under this paragraph unless it includes the original (or verified copies) of the relevant cost records and other relevant accounts of the affiliated interest, or an abstract of the records and accounts or a summary taken from the records and accounts if the commission deems the abstract or summary adequate. The accounts shall be properly identified and duly authenticated. The commission, where reasonable, may approve or disapprove a contract or arrangement without submission of the cost records or accounts.
196.52(3)(b)1.1. The requirement for written approval under
par. (a) shall not apply to any contract or arrangement if the amount of consideration involved is not in excess of $25,000 or 5% of the equity of the public utility, whichever is smaller. The requirement under
par. (a) also does not apply to a telecommunications utility contract or arrangement or to contracts or arrangements with joint local water authorities under
s. 66.0823. Regularly recurring payments under a general or continuing arrangement which aggregate a greater annual amount may not be broken down into a series of transactions to come within the exemption under this paragraph. Any transaction exempted under this paragraph shall be valid or effective without commission approval under this section.
196.52(3)(b)2.
2. In any proceeding involving the rates or practices of the public utility, the commission may exclude from the accounts of the public utility any payment or compensation made pursuant to a transaction exempted under this paragraph unless the public utility establishes the reasonableness of the payment or compensation.
196.52(3)(c)
(c) If the value of a contract or arrangement between an affiliated interest and a public utility, other than a telecommunications utility, exceeds $1,000,000, the commission:
196.52(3)(c)1.
1. May not waive the requirement of the submission of cost records or accounts under
par. (a);
196.52(3)(c)2.
2. Shall review the accounts of the affiliated interest as they relate to the contract or arrangement prior to the commission approving or disapproving the contract or arrangement under
par. (a); and
196.52(3)(c)3.
3. May determine the extent of cost records and accounts which it deems adequate to meet the requirements for submission and review under
subds. 1. and
2.
196.52(4)(a)(a) In any proceeding, whether upon the commission's own motion or upon application or complaint, involving the rates or practices of any public utility, the commission may exclude from the accounts of the public utility any payment or compensation to or from an affiliated interest for any services rendered or property or service furnished under an existing contract or arrangement with an affiliated interest under
sub. (3) (a) unless the public utility establishes the reasonableness of the payment or compensation.
196.52(4)(b)
(b) The commission shall disallow the payment or compensation described in
par. (a), in whole or in part, in the absence of satisfactory proof that the payment or compensation is reasonable in amount.
196.52(4)(c)
(c) The commission may not approve or allow any payment or compensation described in
par. (a), in whole or in part, unless satisfactory proof is submitted to the commission of the cost to the affiliated interest of rendering the service or furnishing the property or service to each public utility or of the cost to the public utility of rendering the service or furnishing the property or service to each affiliated interest.
196.52(4)(d)
(d) No proof shall be satisfactory under this subsection unless it includes the original or verified copies of the relevant cost records and other relevant accounts of the affiliated interest, or an abstract of the records and accounts or a summary taken from the records and accounts if the commission deems the abstract or summary adequate. The accounts shall be properly identified and duly authenticated. The commission, where reasonable, may approve or disapprove a contract or arrangement without submission of the cost records or accounts.
196.52(5)(a)(a) The commission shall have continuing supervisory control over the terms and conditions of contracts and arrangements under this section as necessary to protect and promote the public interest. The commission shall have the same jurisdiction over the modifications or amendment of contracts or arrangements as it has over original contracts or arrangements. Commission approval of a contract or arrangement under this section shall not preclude disallowance or disapproval of a payment under the contract or arrangement if upon actual experience under the contract or arrangement it appears that the payments provided for or made were or are unreasonable. Every order of the commission approving a contract or arrangement shall be expressly conditioned upon the reserved power of the commission to revise and amend the terms and conditions of the contract or arrangement to protect and promote the public interest.
196.52(5)(b)
(b) For telecommunications utilities, the commission shall have supervisory jurisdiction over the terms and conditions of contracts and arrangements under this section as necessary to enforce
ss. 196.204 and
196.219.
196.52(6)
(6) If the commission finds upon investigation that a public utility, other than a telecommunications utility, is giving effect to a contract or arrangement without the commission's approval under this section, the commission shall issue a summary order directing that public utility to cease and desist from making any payments, receiving compensation, providing any service or otherwise giving any effect to the contract or arrangement until the contract or arrangement receives the approval of the commission. The circuit court of Dane County may enforce the order to cease and desist by appropriate process, including the issuance of a preliminary injunction, upon the suit of the commission.
196.52(7)
(7) If the commission finds upon investigation that a public utility is making a payment to, providing a service to or receiving compensation from an affiliated interest, although the payment, service or compensation has been disallowed and disapproved by the commission in a proceeding involving the public utility's rates or practices, the commission shall issue a summary order directing the public utility to cease and desist from making the payment, providing the service or receiving the compensation. The circuit court of Dane County may enforce the order to cease and desist by appropriate process, including the issuance of a preliminary injunction, upon the suit of the commission.
196.52(8)
(8) Nothing in this section prevents a public utility from investing equity capital which is in excess of the level of equity that the commission has determined to be appropriate for the utility's capital structure in a subsidiary without commission approval.
196.525
196.525
Loans to officers or directors and loans to and investments in securities of holding companies; penalty. 196.525(1)(1) Except under rules prescribed by the commission, a public utility may not lend funds or credit to any of its officers or directors by any of the following and a public utility other than a telecommunications utility may not lend funds or credit to any corporation, except a public utility subject to the regulatory powers of the commission, if the corporation holds, directly or indirectly through any chain of ownership, 5% or more of the voting stock of the public utility or renders any managerial, supervising, engineering, legal, accounting or financial service to the public utility by any of the following:
196.525(1)(a)
(a) Becoming surety, guarantor or endorser upon any obligations, contingent or otherwise, of the officer, director or corporation.
196.525(1)(b)
(b) Loaning funds, securities or other like assets to the officer, director or corporation.
196.525(1)(c)
(c) Purchasing in the open market, or otherwise, any obligation upon which the officer, director or corporation may be liable solely or jointly with others.
196.525(2)
(2) Any contract made in violation of this section shall be void and subject to cancellation and recoupment by action at law. If a contract is made contrary to the provisions of this section, the commission, after notice and hearing, may order the public utility to take steps within 30 days to recover the funds or assets thus illegally loaned or transferred by action at law or other proceedings which will effectively release the public utility from the contract as surety, guarantor or endorser.
196.525(3)
(3) Any director, treasurer or other officer or agent of a public utility who makes or votes to authorize a transaction in violation of this section may be fined not more than $10,000.
196.525(4)
(4) The provisions of this section shall extend to the renewal or extension of existing contracts.
196.525 History
History: 1983 a. 53;
1993 a. 496.
196.53
196.53
Franchise, foreign corporation not to have. No license, permit or franchise to own, operate, manage or control any plant or equipment for the production, transmission, delivery or furnishing of heat, light, water or power may be granted or transferred to a foreign corporation. This section does not apply to an independent system operator, as defined in
s. 196.485 (1) (d), or an independent transmission owner, as defined in
s. 196.485 (1) (dm), that is approved by the applicable federal agency, as defined in
s. 196.485 (1) (c), and that controls transmission facilities, as defined in
s. 196.485 (1) (h), in this and another state.
196.54
196.54
Indeterminate permits. 196.54(1)
(1)
Grants to be indeterminate. Every license, permit or franchise granted after July 11, 1907, to any public utility shall have the effect of an indeterminate permit subject to this chapter and
ch. 197.
196.54(2)
(2) Franchises made indeterminate. Every license, permit or franchise granted prior to July 11, 1907, by the state or by a municipality authorizing and empowering the grantee to own, operate, manage or control within this state, either directly or indirectly, a public utility or any part of a public utility is altered and amended to constitute and be an indeterminate permit which is subject to this chapter and
ch. 197. The license, permit or franchise shall have the same force and effect as a license, permit or franchise granted after July 11, 1907, to any public utility, except as provided under
s. 197.02.
196.54(3)
(3) Validation of franchises and permits. 196.54(3)(a)(a) No franchise affected by
sub. (2) and no indeterminate permit shall be declared invalid if:
196.54(3)(a)1.
1. The franchise or permit was not obtained by fraud, bribery or corrupt practices.
196.54(3)(a)2.
2. When the franchise or permit was granted, no officer of the municipality granting the franchise or permit was directly or indirectly interested in the franchise or permit or in the corporation obtaining the franchise or permit.
196.54(3)(b)
(b) Any franchise affected by
sub. (2) and any indeterminate permit is valid if:
196.54(3)(b)1.
1. The corporation having the franchise or permit, prior to surrendering of the franchise or at the beginning of its public service under the permit, in good faith has purchased or constructed any public utility, or any part of a public utility authorized by the franchise.
196.54(3)(b)2.
2. The corporation, in obtaining the franchise or permit, has substantially complied with the requirements provided by law for obtaining the franchise or permit.
196.54(4)
(4) Grants after July 11, 1907; consent to municipal purchase. If a public utility accepts or operates under any license, permit or franchise granted after July 11, 1907, the public utility shall be deemed to have consented under its indeterminate permit to a future purchase of its property actually used and useful for the convenience of the public by the municipality in which the major part of it is situated for the compensation and under the terms and conditions determined by the commission. The public utility shall be deemed to have waived the right to require that the necessity of taking be established by the verdict of a jury, and any other remedy or right relative to condemnation, except any remedy or right under this chapter and
ch. 197.
196.54(5)
(5) Municipal purchase invalidates permit. An indeterminate permit shall be invalid if a municipality exercises its option to purchase the public utility being operated under the permit or if the permit is otherwise terminated according to law.
196.54(6)
(6) Applicability. This section does not apply to a telecommunications utility.
