196.491(3m)(b)1.1. The commission shall promulgate rules that establish requirements and procedures for an affiliated interest to apply for an approval under
par. (a). The rules shall do each of the following:
196.491(3m)(b)1.a.
a. Describe the showing that an applicant is required to make for the commission to grant an approval under
par. (a).
196.491(3m)(b)1.am.
am. Establish screening tests and safe harbors for proposed wholesale merchant plant projects, including projects in which an affiliated interest is a passive investor and over which the affiliated interest is not able to exercise control or influence and projects in which an affiliated interest's ownership interest is less than 5%.
196.491(3m)(b)1.b.
b. Describe the analytical process that the commission shall use in determining whether to make a finding under
par. (a) 2. and describe the factors specified in
subd. 3.
196.491(3m)(b)2.
2. The analytical process specified in
subd. 1. b. shall, to the extent practicable, be consistent with the analytical process described in the merger enforcement policy, as defined in
s. 196.485 (1) (dr).
196.491(3m)(b)3.
3. The commission shall use the following factors in determining whether to make a finding under
par. (a) 2.:
196.491(3m)(b)3.a.
a. The degree of market concentration resulting from the affiliated interest's proposed ownership, operation or control.
196.491(3m)(b)3.b.
b. The extent of control that the affiliated interest proposes to exercise over the wholesale merchant plant.
196.491(3m)(b)3.d.
d. Any other factor that the commission determines is necessary to determine whether to make a finding under
par. (a) 2.
196.491(3m)(c)1.a.
a. "Electric sale" means a sale of electricity that is generated at a wholesale merchant plant that is owned, operated or controlled by an affiliated interest.
196.491(3m)(c)1.b.
b. "Firm sale" means an electric sale in which electricity is intended to be available to a purchaser at all times during a specified period on an uninterruptible basis.
196.491(3m)(c)2.
2. The commission shall review any electric sale by an affiliated interest to a public utility with which the affiliated interest is affiliated. If the commission finds that an electric sale is not in the public interest, the commission shall do any of the following:
196.491(3m)(c)2.a.
a. Disallow the public utility's costs related to the sale in a rate-setting proceeding.
196.491(3m)(c)2.b.
b. Order the public utility to provide a refund, in an amount determined by the commission, to its customers.
196.491(3m)(c)2.c.
c. Order the public utility or affiliated interest to take any action that the commission determines is in the public interest, except that the commission may not order the public utility or affiliated interest to void the sale.
196.491(3m)(c)3.
3. An affiliated interest may not make any firm sale to a public utility with which the affiliated interest is affiliated if the firm sale satisfies any of the following:
196.491(3m)(c)3.b.
b. The period of the firm sale is less than 3 years and either the public utility or the affiliated interest has an option to extend the period to 3 years or more.
196.491(3m)(d)
(d)
Retail sales outside this state. The commission may not promulgate rules or issue orders that prohibit owners or operators of wholesale merchant plants from providing electric service to retail customers in another state.
196.491(3m)(e)
(e)
Exemption. An approval under
par. (a) is not required for an affiliated interest to own, operate or control a wholesale merchant plant in Grant County if the affiliated interest owned, operated or controlled the wholesale merchant plant before January 1, 1998.
196.491 Cross-reference
Cross Reference: See also s.
PSC 100.11, Wis. adm. code.
196.491(4)(b)(b) Subsection (3) does not apply to a person that constructs electric generating equipment and associated facilities if the person satisfies each of the following:
196.491(4)(b)1.
1. The person is not a public utility or 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(4)(b)2.
2. The person shows to the satisfaction of the commission that the person reasonably anticipates, at the time that construction of the equipment or facilities commences, that on each day that the equipment and facilities are in operation the person will consume no less than 70% of the aggregate kilowatt hours output from the equipment and facilities in manufacturing processes at the site where the equipment and facilities are located.
196.491(4)(c)1.1. A certificate under
sub. (3) is not required for a person to construct a high-voltage transmission line designed for operation at a nominal voltage of less than 345 kilovolts if all related construction activity takes place entirely within the area of an existing electric transmission line right-of-way.
196.491(4)(c)2.
2. The commission is not required to prepare an environmental impact statement under under
s. 1.11 (2) (c) for construction that is specified in
subd. 1., but shall prepare an environmental assessment regarding the construction if an environmental assessment is required under the commission's rules.
196.491(4)(c)3.
3. If construction or utilization of a high-voltage transmission line described in
subd. 1. is precluded or inhibited by a local ordinance, the construction and utilization of the line may nevertheless proceed.
196.491(5)
(5) Service standards for electric generation, transmission and distribution facilities. The commission shall promulgate rules that establish all of the following:
196.491(5)(a)
(a) Standards for inspecting, maintaining and repairing each of the following:
196.491(5)(a)1.
1. Electric generation facilities in this state that are owned by public utilities or provide service to public utilities under contracts with terms of 5 years or more.
196.491(5)(a)2.
2. Electric transmission or distribution facilities in this state that are owned by public utilities.
196.491(5)(b)
(b) Standards that the commission determines are necessary for the safe and reliable operation of each of the following:
196.491(5)(b)1.
1. Electric generation facilities in this state that are owned by public utilities or provide service to public utilities under contracts with terms of 5 years or more.
196.491(5)(b)2.
2. Electric transmission or distribution facilities in this state that are owned by public utilities.
196.491(6)
(6) Waiver. The commission may waive compliance with any requirement of this section to the extent necessary to restore service which has been substantially interrupted by a natural catastrophe, accident, sabotage or act of God.
196.491 Cross-reference
Cross Reference: See also ch.
PSC 112, Wis. adm. code.
196.491 Annotation
It was reasonable for the PSC to issue a certificate conditioned on the issuance of DNR permits when legislatively imposed time constraints could not have been met if sub. (3) (e) had been strictly followed and all permits required before the issuance of the certificate. Responsible Use of Rural & Agricultural Land v. PSC, 2000 WI 129,
239 Wis. 2d 660,
619 N.W.2d 888.
196.493
196.493
Construction of nuclear power plants limited. 196.493(1)(1)
Definition. In this section, "nuclear power plant" means a nuclear-fired large electric generating facility as defined under
s. 196.491 (1) (g).
196.493(2)(a)
(a) A federally licensed facility, or a facility outside of the United States which the commission determines will satisfy the public welfare requirements of the people of this state, with adequate capacity to dispose of high-level nuclear waste from all nuclear power plants operating in this state will be available, as necessary, for disposal of the waste; and
196.493(2)(b)
(b) The proposed nuclear power plant, in comparison with feasible alternatives, is economically advantageous to ratepayers, based upon:
196.493(2)(b)1.
1. The existence of a reliable and adequate nuclear fuel supply;
196.493(2)(b)2.
2. The costs for construction, operation and decommissioning of nuclear power plants and for nuclear waste disposal; and
196.493(2)(b)3.
3. Any other factor having an impact on the economics of nuclear power plants, as determined by the commission.
196.493 History
History: 1983 a. 401;
1997 a. 204.
196.493 Cross-reference
Cross Reference: See also ch.
PSC 111, Wis. adm. code.
196.494
196.494
Regional transmission planning. 196.494(1)(a)
(a) "Electric utility" means a public utility, other than a municipal utility, as defined in
s. 196.377 (2) (a) 3., that provides retail electric service to customers in this state.
196.494(1)(b)
(b) "Transmission facility" means any pipe, pipeline, duct, wire, line, conduit, pole, tower, equipment or other structure used for the transmission of electric power as determined by the commission.
196.494(2)
(2) The commission shall conduct a study on identifying and relieving any constraint on an intrastate or interstate electric transmission system that adversely affects the reliability of transmission service provided to electric customers in this state and shall, no later than September 1, 1998, submit a report on the results of the study to the legislature in the manner provided under
s. 13.172 (2).
196.494(3)
(3) The commission shall, under this subsection, issue an order requiring the transmission company, as defined in
s. 196.485 (1) (ge), or an electric utility to construct or procure, on a competitive basis, the construction of transmission facilities specified by the commission in its order if the commission determines that such construction is necessary to relieve a constraint on a transmission system and the construction will materially benefit the customers of the transmission company or electric utility or other electric utilities or of an independent system operator, as defined in
s. 196.485 (1) (d), or independent transmission owner, as defined in
s. 196.485 (1) (dm).
196.494(4)
(4) The commission shall allow an electric utility to recover in its retail electric rates any costs that are prudently incurred by the utility in complying with an order under
sub. (3).
196.494(5)
(5) The governor may, on behalf of this state, enter into an interstate compact that establishes a joint process for the states in the upper midwest region of the United States to determine the need for and siting of regional electric transmission facilities that may affect electric service in this state. The governor may not enter into a compact under this subsection unless the compact includes requirements and procedures for establishing each of the following:
196.494(5)(a)
(a) Compliance with each state's environmental and siting standards for transmission facilities.
196.494(5)(b)
(b) A regional need determination for transmission facilities.
196.494(5)(c)
(c) A mechanism for resolving conflicts between the states regarding the siting of transmission facilities.
196.494 History
History: 1997 a. 204;
1999 a. 9.
196.495
196.495
Avoidance of duplication in electric facilities. 196.495(1)(a)1.
1. "Primary voltage extension" means an extension of 500 feet or more.
196.495(1)(a)2.
2. "Secondary voltage extension" means an extension that is less than 500 feet.
196.495(1)(b)
(b) The length of an extension shall be measured as the air line distance between an existing local service distribution line that normally operates at less than 35 kilovolts and the nearest point on the principal building or facility to be served by a primary voltage extension or a secondary voltage extension.
196.495(1m)
(1m) No public utility, and no cooperative association organized under
ch. 185 for the purpose of furnishing electric service to its members only, may:
196.495(1m)(a)
(a) Extend or render electric service directly or indirectly to the premises of any person already receiving electric service directly or indirectly from another public utility or another cooperative association.
196.495(1m)(b)
(b) Make a primary voltage extension to serve the premises of any person not receiving electric service and to which service is available from the facilities of another public utility or another such cooperative association through a secondary voltage extension, unless the other public utility or cooperative association consents to the primary voltage extension in writing or unless the commission, after notice to the interested parties and hearing, determines that the service rendered or to be rendered by the other public utility or cooperative association is inadequate and is not likely to be made adequate, or that the rates charged for service are unreasonable and are not likely to be made reasonable.
196.495(2)
(2) If a public utility is rendering electric service under an indeterminate permit to a city or village, no cooperative association may extend any new electric service to the premises of any person inside the corporate limits, existing on January 1, 1961, of the city or village without the written consent of the public utility. Within any area annexed to a city or village after January 1, 1961, in which annexed area a cooperative association or public utility, other than the public utility serving the city or village under an indeterminate permit, has electric distribution facilities at the time of the annexation, the cooperative association or other public utility may make a primary voltage extension or a secondary voltage extension in the annexed area, subject to
sub. (1m).
196.495(2m)
(2m) The distribution service facilities of a cooperative association or public utility rendering electric service in an annexed area under
sub. (2) shall be subject to acquisition under
ch. 197 by a city or village if the city or village operates or proposes to operate its own electric public utility.
196.495(3)
(3) Nothing in this section shall preclude any public utility or any cooperative association from extending electric service to its own property or facilities or to another cooperative association for resale.
196.495(4)
(4) To avoid duplication of facilities, a public utility and a cooperative association may enter into a written agreement governing the extension of electric distribution lines and the right to serve customers. The commission shall enforce an agreement if the agreement has been filed with the commission and approved by the commission as being in the public interest.
196.495(5)
(5) If an interested party files a complaint with the commission that an electric public utility or a cooperative association has made a primary voltage extension that requires approval or consent under this section without obtaining approval or consent, the commission shall hear the complaint upon notice to the interested parties. If the commission determines that the primary voltage extension was made in violation of this section, it shall order the prompt removal of the primary voltage extension.
196.495(6)
(6) A cooperative association shall be subject to the authority of the commission to enforce the provisions of this section and to issue rules and orders relating to the provisions.
196.495(7)
(7) A cooperative association shall be subject to the authority of the commission to allocate, assess and collect expenditures of the commission against a cooperative association involved in a proceeding under this section in the same manner as provided for public utilities under
s. 196.85.
196.495 History
History: 1971 c. 125 s.
521;
1983 a. 53;
1991 a. 94.
196.495 Cross-reference
Cross Reference: See also s.
PSC 112.08, Wis. adm. code.
196.495 Annotation
Although one utility was serving a farm, when the farm was annexed to a city and a large shopping center was built, the utility having an indeterminate permit to serve the city could not be barred from serving the area; the PSC should determine which utility should serve the area. Adams-Marquette Electric Cooperative v. PSC
51 Wis. 2d 718,
188 N.W.2d 515 (1971).
196.495 Annotation
The "premises of a person already receiving electrical service" refers to the premises to be served, not the person. Adams-Marquette Electric Cooperative v. PSC
51 Wis. 2d 718,
188 N.W.2d 515 (1971).
196.495 Annotation
The application of this section is discussed. A court's order to a utility violating this section to remove the offending line or sell it to the utility who should have provided the service was within the authority granted by sub. (5). Barron Electric Cooperative v. PSC,
212 Wis. 2d 752,
569 N.W.2d 726 (Ct. App. 1997).
196.496
196.496
Distributed generation facilities. 196.496(1)
(1)
Definition. In this section, "distributed generation facility" means a facility for the generation of electricity with a capacity of no more than 15 megawatts that is located near the point where the electricity will be used or is in a location that will support the functioning of the electric power distribution grid.
196.496(2)
(2) Rules. The commission shall promulgate rules establishing standards for the connection of distributed generation facilities to electric distribution facilities. To the extent technically feasible and cost effective, the standards shall be uniform and shall promote the development of distributed generation facilities. The standards shall address engineering, electric reliability, and safety concerns and the methods for determining charges for interconnection.
