196.485(5)(c)1.b.
b. If the land right is jointly used, or is intended to be jointly used, for electric and gas distribution facilities by the public utility affiliate, the public utility affiliate shall enter into a contract with the transmission company that grants the transmission company a right to place, maintain, modify or replace the transmission company's transmission facilities on the real property that is subject to the land right during the life of the transmission facilities and the life of any replacements of the transmission facilities. A right granted in a contract under this
subd. 1. b. shall be paramount to the right of any other user of the land right, except that a right granted in such a contract shall be on par with the right of the public utility affiliate to use the land right for electric or gas distribution facilities.
196.485(5)(c)2.
2. If a public utility affiliate is prohibited from making a conveyance or assignment described in
subd. 1. a., the public utility affiliate shall enter into a contract with the transmission company that grants the transmission company substantially the same rights as under such a conveyance or assignment. For purposes of a contract under this subdivision, a land right shall be valued at book value, not at market value.
196.485(5)(c)3.
3. The commission shall resolve any dispute over the contribution of a land right under
subd. 1. or
2., including a dispute over the valuation of such a land right, unless a federal agency exercises jurisdiction over the dispute. During the pendency of any dispute that is before the commission or a federal agency, the transmission company shall be entitled to use the land right that is the subject to the dispute and shall be required to pay any compensation that is in dispute into an escrow account.
196.485(5)(d)
(d)
Applicability. Notwithstanding
sub. (1) (h), and subject to any approval required under federal law, for purposes of this subsection, a facility of a public utility affiliate is a transmission facility if any of the following applies:
196.485(5)(d)1.
1. The facility is not a radial facility and the facility is designed for operation at a nominal voltage of more than 130 kilovolts.
196.485(5)(d)2.
2. The facility is not a radial facility and the facility is designed for operation at a nominal voltage of more than 50 kilovolts but not more than 130 kilovolts, unless a person has demonstrated to the commission that the facility is not a transmission facility on the basis of factors for identifying a transmission facility that are specified in the orders of the federal energy regulatory commission under
16 USC 824d and
824e.
196.485(5)(d)3.
3. The facility is a radial facility or is designed for operation at a nominal voltage of 50 kilovolts or less, and a person has demonstrated to the commission that the facility is a transmission facility on the basis of factors for identifying a transmission facility that are specified in the orders of the federal energy regulatory commission under
16 USC 824d and
824e.
196.485(6)
(6) Electric utilities, transmission dependent utilities and retail electric cooperatives. 196.485(6)(a)1.
1. An electric utility, other than a public utility affiliate or an owner or operator of a wholesale merchant plant, as defined in
s. 196.491 (1) (w), may transfer all of its transmission facilities that are specified in
subd. 2. to the transmission company on the same terms and conditions as a contribution of transmission facilities and land rights by a public utility affiliate under
sub. (5) (b) and
(c).
196.485(6)(a)2.
2. An electric utility may transfer transmission facilities under
subd. 1. if the transmission facilities are located in the geographic area that is served by the Mid-America Interconnected Network, Inc., or the Mid-Continent Area Power Pool reliability council of the North American Electric Reliability Council.
196.485(6)(a)3.
3. A transmission-dependent utility or retail electric cooperative may purchase equity interests in the transmission company at a price that is equivalent to net book value and on terms and conditions that are comparable to those for public utility affiliates that have contributed transmission facilities to the transmission company. A purchaser under this subdivision may contribute funds to the transmission company that are no more than the value of its prorated shares based on firm electric usage in this state in 1999.
196.485(6)(b)
(b) Notwithstanding
sub. (1) (h), and subject to any approval required under federal law, for purposes of this subsection, a facility of an electric utility is a transmission facility if the criteria specified in
sub. (5) (d) 1.,
2. or
3. are satisfied.
196.485(6m)
(6m) Dividends, distributions, profits and gains. The commission may not treat any dividend or distribution received by a transmission utility from the transmission company or any gain or profit of a transmission utility from the sale or other disposition of securities issued by the transmission company as a credit against the retail revenue requirements of the transmission utility.
196.485(7)
(7) Enforcement. A wholesale or retail customer of a public utility affiliate may petition the circuit court for Dane County for specific performance of a commitment filed under
sub. (5) (a) 2. or
3.
196.485(8)
(8) Penalties. A public utility affiliate that fails to complete the contribution of transmission facilities to the transmission company by the completion date specified in the filing under
sub. (5) (a) 2. shall forfeit $25,000 for each day that completion of the contribution is delayed if the transmission company is legally able to accept the contribution.
196.487
196.487
Reliability of electric service. 196.487(2)
(2) Commission order. If the commission determines that a public utility affiliate or the transmission company is not making investments in the facilities under its control that are sufficient to ensure reliable electric service, the commission shall order the public utility affiliate or transmission company to make adequate investments in its facilities that are sufficient to ensure reliable electric service. An order under this subsection shall require the public utility affiliate or transmission company to provide security in an amount and form that, to the satisfaction of the commission, is sufficient to ensure that the public utility affiliate or transmission company expeditiously makes any investment that is ordered.
196.487(3)
(3) Cost recovery. The commission shall allow a public utility affiliate that is subject to an order under
sub. (2) to recover in its retail electric rates the costs that are prudently incurred in complying with the order.
196.487 History
History: 1999 a. 9.
196.49
196.49
Authorization from commission before transacting business; extensions and improvements to be approved; enforcement of orders; natural gas. 196.49(1)(ag)(ag) In this subsection, "public utility" does not include a telecommunications utility.
196.49(1)(am)
(am) No public utility not legally engaged in performing a utility service on August 1, 1931, in any municipality may commence the construction of any public utility plant, extension or facility, or render service in such municipality directly, or indirectly by serving any other public utility or agency engaged in public utility service or otherwise, unless the public utility has obtained a certificate from the commission authorizing it to transact public utility business.
196.49(1)(b)
(b) This subsection applies only to a public utility which was not legally engaged in performing a public utility service on August 1, 1931, in a municipality and which proposes to commence construction or render service in the municipality. If there is a public utility engaged in similar service in operation under an indeterminate permit in the municipality,
ss. 196.495 and
196.50 apply.
196.49(2)
(2) No public utility may begin the construction, installation or operation of any new plant, equipment, property or facility, nor the construction or installation of any extension, improvement or addition to its existing plant, equipment, property, apparatus or facilities unless the public utility has complied with any applicable rule or order of the commission and with
s. 281.35, if applicable. If a cooperative association has been incorporated under
ch. 185 for the production, transmission, delivery or furnishing of light or power and has filed with the commission a map of the territory to be served by the association and a statement showing that a majority of the prospective consumers in the area are included in the project, no public utility may begin any such construction, installation or operation within the territory until after the expiration of 6 months from the date of filing the map and notice. If the cooperative association has entered into a loan agreement with any federal agency for the financing of its proposed system and has given written notice of the agreement to the commission, no public utility may begin any construction, installation or operation within the territory until 12 months after the date of the loan agreement.
196.49(3)(a)(a) In this subsection, "project" means construction of any new plant, equipment, property or facility, or extension, improvement or addition to its existing plant, equipment, property, apparatus or facilities. The commission may require by rule or special order that a public utility submit, periodically or at such times as the commission specifies and in such detail as the commission requires, plans, specifications and estimated costs of any proposed project which the commission finds will materially affect the public interest.
196.49(3)(b)
(b) Except as provided in
par. (d), the commission may require by rule or special order under
par. (a) that no project may proceed until the commission has certified that public convenience and necessity require the project. The commission may refuse to certify a project if it appears that the completion of the project will do any of the following:
196.49(3)(b)1.
1. Substantially impair the efficiency of the service of the public utility.
196.49(3)(b)2.
2. Provide facilities unreasonably in excess of the probable future requirements.
196.49(3)(b)3.
3. When placed in operation, add to the cost of service without proportionately increasing the value or available quantity of service unless the public utility waives consideration by the commission, in the fixation of rates, of such consequent increase of cost of service.
196.49(3)(c)
(c) The commission may issue a certificate for the project or for any part of the project which complies with the requirements of this section, or the commission may attach to the issuance of its certificate such terms and conditions as will ensure that the project meets the requirements of this section. The issuance of a certificate under this section shall not be a condition precedent to the exercise of eminent domain under
ch. 32.
196.49(3)(d)
(d) A telecommunications utility is not required to obtain commission certification before beginning a construction project.
196.49(4)
(4) The commission may not issue a certificate under
sub. (1),
(2), or
(3) for the construction of electric generating equipment and associated facilities unless the commission determines that brownfields, as defined in
s. 560.13 (1) (a), are used to the extent practicable.
196.49(5)(a)(a) No public utility furnishing gas to the public in this state may construct, install or place in operation any new plant, equipment, property or facility, or construct or install any extension, improvement, addition or alteration to its existing plant, equipment, property or facilities for the purpose of connecting its properties and system to a source of supply of gaseous fuel for sale to the public which is different from that which has been sold previously, or for the purpose of adapting its facilities to use the different kind of gaseous fuel unless the commission certifies that the general public interest and public convenience and necessity require the connection to or use of the different fuel. No public utility may substitute natural gas or a mixture of natural and manufactured gas in lieu of manufactured gas for distribution and sale to the public unless it has obtained from the commission a certificate that the general public interest and public convenience and necessity require the substitution.
196.49(5)(b)
(b) Proceedings for a certificate under
par. (a) shall be commenced by petition to the commission in a form prescribed by the commission, furnishing such information as the commission by rule or order prescribes. The commission shall prescribe the form of notice, to whom the notice shall be given, and how notice shall be given.
196.49(5)(c)
(c) A petition under
par. (b) may include one or more municipalities, may be made by one or more public utilities as a joint petition, by any other interested person or by a public utility and any other interested person. The commission may direct the consolidation, separation or consideration of separate petitions as it deems necessary or expedient to a prompt hearing and disposition of the issue.
196.49(5)(d)
(d) Upon the filing of a petition under
par. (b), notice of hearing on the petition shall be given by the person filing the petition by publication of a class 2 notice, under
ch. 985, or by mailing or personal service, as the commission directs by the order under
par. (b). Notice under this paragraph shall be given at least 2 weeks prior to hearing on the petition. Proof of notice shall be filed as directed by the commission.
196.49(5)(e)
(e) The commission, with or without an order, prior to or during any hearing under this subsection, may frame and prescribe special issues and limit the issues or the nature and extent of proof so as to avoid unnecessary duplication. The commission, with or without an order, may proceed with the hearing as to part of a petition under
par. (b) as it may find desirable to a full but speedy hearing upon the petition.
196.49(5)(f)
(f) The commission may accept as presumptive evidence in a commission proceeding the facts found in findings and orders of the federal energy regulatory commission or any federal agency having jurisdiction as to the availability of adequate supplies of natural gas, the adequacy or sufficiency of equipment and facilities to be employed in the delivery or storage of natural gas for any public utility, and any similar findings or determinations affecting the seller or person furnishing natural gas to any public utility and material to the ultimate determination of the issues in the proceeding. The commission may accept and take judicial notice of its own files and records, including all proceedings and the evidence therein which it finds to be material and relevant. The commission shall give notice of the taking of judicial notice under this paragraph prior to the conclusion of final hearings upon any proceeding so as to give interested parties the right to object to acceptance of the evidence or to contradict the evidence by other competent evidence.
196.49(5)(g)
(g) A certificate granted under
par. (a) shall be authorized by an order following a hearing. The order shall contain any condition or limitation which the commission deems necessary or practicable, including, but not limited to, exceptions or regulations as to specific communities or public utilities, provision for protection of employees under existing labor contracts, as well as other employees, so as to avoid unemployment, regulations for accounting for expenses for change-over to the use of natural gas where necessary and to the extent necessary, provision for amortization of any expenditure or other items, and any other regulation, condition and limitation which the commission considers necessary in the public interest.
196.49(5)(h)
(h) The commission by order may extend a certificate under
par. (a) to more than one public utility or municipality. The commission may prescribe different conditions and regulations for each public utility or municipality if the commission deems the different conditions and regulations necessary to carry out the purposes of this section.
196.49(5)(i)
(i) In making a determination under this section, the commission shall consider all appropriate factors affecting the public interest, including, but not limited to, when the substitution of natural or a mixture of natural and manufactured gas is involved, the likelihood of substantial rate reduction from the substitution and the effect of the substitution upon employment, existing business and industries, railroads and other transportation agencies and facilities, upon conveniences, economies and savings to consumers, upon existing gas utilities and their ability to continue to serve the public and upon the state, any of its political subdivisions or any citizen or resident of the state.
196.49(6)
(6) If the commission finds that any public utility has taken or is about to take an action which violates or disregards a rule or special order under this section, the commission, in its own name either before or after investigation or public hearing and either before or after issuing any additional orders or directions it deems proper, may bring an action in the circuit court of Dane County to enjoin the action. If necessary to preserve the existing state of affairs, the court may issue a temporary injunction pending a hearing upon the merits. An appeal from an order or judgment of the circuit court may be taken to the court of appeals.
196.49 Cross-reference
Cross Reference: See also chs.
PSC 112,
113,
114, and
162, Wis. adm. code.
196.49 Annotation
There is no hearing requirement for the issuance of a certificate authorizing service. Adams-Marquette Electric Cooperative v. PSC.
51 Wis. 2d 718,
188 N.W.2d 515 (1971).
196.49 Annotation
The "public" in sub. (3) (b) includes all electric consumers in the state, not only the ratepayers of the utility seeking authorization. Wisconsin Power & Light Co. v. PSC,
148 Wis. 2d 881,
437 N.W.2d 888 (Ct. App. 1989).
196.491
196.491
Strategic energy assessment; electric generating facilities and transmission lines. 196.491(1)(b)
(b) "Commencement of construction" means site clearing, excavation, placement of facilities or any other substantial action adversely affecting the natural environment of the site, but does not mean borings necessary to determine foundation conditions or other preconstruction monitoring to establish background information related to site or environmental suitability.
196.491(1)(bm)
(bm) "Cooperative association" 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.
196.491(1)(c)
(c) "Department" means the department of natural resources.
196.491(1)(d)
(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 years to construct, own or operate, facilities in the state.
196.491(1)(e)
(e) "Facility" means a large electric generating facility or a high-voltage transmission line.
196.491(1)(f)
(f) Except as provided in
subs. (2) (b) 8. and
(3) (d) 3m., "high-voltage transmission line" means a conductor of electric energy exceeding one mile in length designed for operation at a nominal voltage of 100 kilovolts or more, together with associated facilities, and does not include transmission line relocations that the commission determines are necessary to facilitate highway or airport projects.
196.491(1)(g)
(g) "Large electric generating facility" means electric generating equipment and associated facilities designed for nominal operation at a capacity of 100 megawatts or more.
196.491(1)(w)1.1. "Wholesale merchant plant" means, except as provided in
subd. 2., electric generating equipment and associated facilities located in this state that do not provide service to any retail customer and that are owned and operated by any of the following:
196.491(1)(w)1.a.
a. Subject to the approval of the commission under
sub. (3m) (a), an affiliated interest of a public utility.
196.491(1)(w)2.
2. "Wholesale merchant plant" does not include an electric generating facility or an improvement to an electric generating facility that is subject to a leased generation contract, as defined in
s. 196.52 (9) (a) 3.
196.491(2)(a)(a) The commission shall prepare a biennial strategic energy assessment 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:
196.491(2)(a)3.
3. Identify and describe large electric generating facilities on which an electric utility plans to commence construction within 3 years.
196.491(2)(a)3g.
3g. Assess the adequacy and reliability of purchased generation capacity and energy to serve the needs of the public.
196.491(2)(a)3m.
3m. Identify and describe high-voltage transmission lines on which an electric utility plans to commence construction within 3 years.
196.491(2)(a)3r.
3r. Identify and describe any plans for assuring that there is an adequate ability to transfer electric power into the state and the transmission area, as defined in
s. 196.485 (1) (g), in a reliable manner.
196.491(2)(a)4.
4. Identify and describe the projected demand for electric energy and the basis for determining the projected demand.
196.491(2)(a)7.
7. Identify and describe activities to discourage inefficient and excessive power use.
196.491(2)(a)9.
9. Identify and describe existing and planned generating facilities that use renewable sources of energy.
196.491(2)(a)10.
10. Consider the public interest in economic development, public health and safety, protection of the environment and diversification of sources of energy supplies.
196.491(2)(a)11.
11. Assess the extent to which the regional bulk-power market is contributing to the adequacy and reliability of the state's electrical supply.
196.491(2)(a)12.
12. Assess the extent to which effective competition is contributing to a reliable, low-cost and environmentally sound source of electricity for the public.
196.491(2)(a)13.
13. Assess whether sufficient electric capacity and energy will be available to the public at a reasonable price.
196.491(2)(ag)
(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 under
par. (a).
196.491(2)(b)
(b) On or before July 1, 2000, and on or before July 1 of each even-numbered year thereafter, the commission shall issue a draft of the biennial strategic energy assessment that it prepares under
par. (a) to each of the following:
