196.025(1)(b)1.1. In a proceeding in which an investor-owned electric public utility is a party, the commission shall not order or otherwise impose energy conservation or efficiency requirements on the investor-owned electric public utility if the commission has fulfilled all of its duties under
s. 196.374 and the investor-owned electric public utility has satisfied the requirements of
s. 196.374 for the year prior to commencement of the proceeding, as specified in
s. 196.374 (8).
196.025(1)(b)2.
2. In a proceeding in which a wholesale supplier is a party, the commission shall not order or otherwise impose energy conservation or efficiency requirements on the wholesale supplier if the commission has fulfilled all of its duties under
s. 196.374 and the wholesale supplier's members are in the aggregate substantially in compliance with
s. 196.374 (7).
196.025(1)(c)1.1. In a proceeding in which an investor-owned electric public utility is a party, the commission shall not order or otherwise impose any renewable resource requirements on the investor-owned electric public utility if the commission has fulfilled all of its duties under
s. 196.378 and the commission has informed the utility under
s. 196.378 (2) (c) that, with respect to the most recent report submitted under
s. 196.378 (2) (c), the utility is in compliance with the requirements of
s. 196.378 (2) (a) 2.
196.025(1)(c)2.
2. In a proceeding in which a wholesale supplier is a party, the commission shall not order or otherwise impose any renewable resource requirements on the wholesale supplier if the commission has fulfilled all of its duties under
s. 196.378 and the wholesale supplier's members are in the aggregate substantially in compliance with
s. 196.378 (2).
196.025(1)(d)
(d)
Transmission facilities. In a proceeding regarding a request by a public utility or wholesale supplier to acquire, construct, install, or operate an electric transmission facility or associated equipment, the commission shall not order or otherwise impose requirements on the public utility or wholesale supplier.
196.025(1m)
(1m) Transmission corridors. The commission shall implement the policy specified in
s. 1.12 (6) in making all decisions, orders, and rules affecting the siting of new electric transmission facilities.
196.025(2)
(2) Environmental impacts. The commission shall promulgate rules establishing requirements and procedures for the commission to carry out the duties under
s. 1.11. Rules promulgated under this subsection shall include requirements and procedures for the commission to comply with
sub. (2m) and for each of the following:
196.025(2)(a)
(a) Standards for determining the necessity of preparing an environmental impact statement.
196.025(2)(b)
(b) Adequate opportunities for interested persons to be heard on environmental impact statements, including adequate time for the preparation and submission of comments.
196.025(2)(c)
(c) Deadlines that allow thorough review of environmental issues without imposing unnecessary delays in addressing the need for additional electric transmission capacity in this state.
196.025(2m)
(2m) Coordination with department of natural resources. 196.025(2m)(a)2.
2. "Project" means a project or construction requiring a certificate under
s. 196.49 or
196.491 (3) and requiring a permit or approval from the department.
196.025(2m)(b)
(b) The commission and the department shall coordinate the execution of their respective duties under
s. 1.11 for any action of the commission or department regarding a project as follows:
196.025(2m)(b)1.
1. If the rules of either the commission or the department require the commission or the department to prepare an environmental impact statement on the project, the commission and the department shall cooperatively prepare an environmental impact statement.
196.025(2m)(b)2.
2. If
subd. 1. does not apply and the rules of either the commission or the department require the commission or the department to prepare an environmental assessment on the project, the commission and the department shall cooperatively prepare an environmental assessment.
196.025(2m)(b)3.
3. The environmental impact statement or environmental assessment under
subd. 1. or
2. shall include all of the information required for both the commission and the department to carry out their respective duties under
s. 1.11.
196.025(2m)(c)
(c) Paragraph (b) does not waive any duty of the commission or the department to comply with
s. 1.11 or to take any other action required by law regarding a project, except that, in the consideration of alternative locations, sites, or routes for a project, the commission and the department are required to consider only the location, site, or route for the project identified in an application for a certificate under
s. 196.49 and no more than one alternative location, site, or route; and, for a project identified in an application for a certificate under
s. 196.491 (3), the commission and the department are required to consider only the location, site, or route for the project identified in the application and one alternative location, site, or route.
196.025(3)
(3) Reliability reports. The commission shall promulgate rules establishing requirements and procedures for electric utilities, as defined under
s. 196.491 (1) (d), to file reports with the commission, on a frequency that the commission determines is reasonably necessary, on their current reliability status, including the status of operating and planning reserves, available transmission capacity and outages of major operational units and transmission lines. A report filed under the rules promulgated under this subsection is subject to inspection and copying under
s. 19.35 (1), except that the commission may withhold the report from inspection and copying for a period of time that the commission determines is reasonably necessary to prevent an adverse impact on the supply or price of energy in this state.
196.025(4)(a)(a) In consultation with the department of administration and the department of revenue, the commission shall study the establishment of a program for providing incentives for the development of high-efficiency, small-scale electric generating facilities in this state that do either of the following:
196.025(4)(a)1.
1. Provide benefits in the form of support for electric distribution or transmission systems, power quality or environmental performance.
196.025(4)(a)2.
2. Employ technologies such as combined heat and power systems, fuel cells, microturbines, or photovoltaic systems that may be situated in, on, or next to buildings or other electric load centers.
196.025(4)(b)
(b) No later than January 1, 2001, the commission shall submit a report of its findings and recommendations under
par. (a) to the chief clerk of each house of the legislature for distribution to the appropriate standing committees under
s. 13.172 (3).
196.025(5)(ag)(ag) In this subsection, "electric cooperative" 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.
196.025(5)(ar)
(ar) The commission shall contract with an expert consultant in economics to conduct a study on the potential for horizontal market power, including the horizontal market power of electric generators, to frustrate the creation of an effectively competitive retail electricity market in this state and to make recommendations on measures to eliminate such market power on a sustainable basis. The study shall include each of the following:
196.025(5)(ar)1.
1. An assessment of the effect of each recommendation on public utility workers and shareholders and electric cooperative workers and members.
196.025(5)(ar)1m.
1m. An assessment of the effect of each recommendation on rates for each class of public utility customers and electric cooperative members.
196.025(5)(ar)2.
2. An evaluation of the impact of transmission constraints on the market power of electric generators in local areas.
196.025(5)(b)
(b) No later than January 1, 2001, the commission shall submit a report of the results of the study under
par. (ar) to the chief clerk of each house of the legislature for distribution to the appropriate standing committees under
s. 13.172 (3).
196.025 Note
NOTE: 1993 Wis. Act 414, which creates this section, contains extensive explanatory notes.
196.025 Cross-reference
Cross Reference: See also
PSC, Wis. adm. code.
196.027
196.027
Environmental trust financing. 196.027(1)(a)
(a) "Ancillary agreement" means any bond insurance policy or other financial arrangement entered into in connection with the issuance of environmental trust bonds.
196.027(1)(b)
(b) "Assignee" means any person to which an interest in environmental control property is sold, assigned, transferred, or conveyed and any successor to such a person.
196.027(1)(c)
(c) "Energy utility" means a public utility engaged in the transmission, delivery, or furnishing of natural gas by means of pipes or mains or of heat, light, or power.
196.027(1)(d)
(d) "Environmental control activity" means any of the following:
196.027(1)(d)1.
1. The construction, installation, or otherwise putting into place of environmental control equipment in connection with an energy utility plant that, before March 30, 2004, has been used to provide service to customers.
196.027(1)(d)2.
2. The retiring of any existing plant, facility, or other property to reduce, control, or eliminate environmental pollution in accordance with federal or state law.
196.027(1)(e)
(e) "Environmental control charge" means a charge paid by customers of an energy utility or its successors for the energy utility to recover environmental control costs and financing costs.
196.027(1)(f)
(f) "Environmental control cost" means capital cost, including capitalized cost relating to regulatory assets, incurred or expected to be incurred by an energy utility in undertaking an environmental control activity and, with respect to an environmental control activity described in
par. (d) 2., includes the unrecovered value of property that is retired, including any demolition or similar cost that exceeds the salvage value of the property. "Environmental control cost" does not include any monetary penalty, fine, or forfeiture assessed against an energy utility by a government agency or court under a federal or state environmental statute, rule, or regulation.
196.027(1)(g)
(g) "Environmental control equipment" means any device, equipment, structure, process, facility, or technology, owned or controlled by an energy utility, that is designed for the primary purpose of preventing, reducing, or remediating environmental pollution.
196.027(1)(h)
(h) "Environmental control property" means all of the following:
196.027(1)(h)1.
1. The right specified in a financing order to impose, collect, or receive environmental control charges, or to obtain adjustments to such charges as provided in this section, and any interest in such right.
196.027(1)(h)2.
2. All revenues and proceeds arising from the right and interests specified in
subd. 1.
196.027(1)(i)
(i) "Environmental pollution" means the contamination or rendering unclean or impure of the air, land, or waters of the state, or the making of the same injurious to public health, harmful for commercial or recreational use, or deleterious to animal or plant life.
196.027(1)(j)
(j) "Environmental trust bonds" means bonds, debentures, notes, certificates of participation, certificates of beneficial interest, certificates of ownership, or other evidences of indebtedness that are issued by an energy utility or an assignee, the proceeds of which are used directly or indirectly to recover, finance, or refinance environmental control costs and financing costs, and that are secured by or payable from environmental control property.
196.027(1)(k)1.
1. Interest and redemption premiums, that are payable on environmental trust bonds.
196.027(1)(k)2.
2. A payment required under an ancillary agreement, including any amount required to fund a reserve account.
196.027(1)(k)3.
3. The cost of retiring or refunding an energy utility's existing debt and equity securities in connection with the issuance of environmental trust bonds, but only to the extent the securities were issued for the purpose of financing environmental control costs.
196.027(1)(k)4.
4. Any other reasonable cost related to issuing and servicing environmental trust bonds, including servicing fees, trustee fees, legal fees, administrative fees, placement fees, capitalized interest, and rating agency fees.
196.027(1)(k)5.
5. Any taxes and license fees imposed on the revenues generated from the collection of environmental control charges.
196.027(1)(L)
(L) "Financing order" means an order under
sub. (2) that allows for the issuance of environmental trust bonds, the collection of environmental control charges, and the creation of environmental control property.
196.027(2)(a)(a)
Applications. An energy utility may apply to the commission for a financing order. In addition to any other information required by the commission, an energy utility shall do all of the following in an application:
196.027(2)(a)1.
1. Describe the environmental control activities that the energy utility proposes to undertake, indicate whether the energy utility's electric, natural gas, or steam service is associated with the activities, and describe the reasons for undertaking the activities.
196.027(2)(a)2.
2. Estimate the environmental control costs of the activities described under
subd. 1.
196.027(2)(a)3.
3. Indicate whether the energy utility proposes to finance all or a portion of the costs estimated under
subd. 2. with environmental trust bonds. If the energy utility proposes to finance a portion of the costs, the energy utility shall identify that portion in the application.
196.027(2)(a)4.
4. Estimate the financing costs of the environmental trust bonds proposed under
subd. 3.
196.027(2)(a)5.
5. Estimate the environmental control charges necessary to recover the environmental control costs and financing costs estimated in the application and indicate whether the environmental control charges are proposed for the energy utility's electric, natural gas, or steam service.
196.027(2)(a)6.
6. Estimate any cost savings to customers resulting from financing environmental control costs with environmental trust bonds as opposed to alternative financing methods.
196.027(2)(b)1.1. No later than 120 days after receiving an application under
par. (a), the commission shall, after a hearing, issue a financing order or an order rejecting the application. The commission may issue a financing order if the commission finds all of the following:
196.027(2)(b)1.a.
a. That the order will result in lower overall costs to customers than would alternative methods of financing environmental control activities.
196.027(2)(b)1.b.
b. That the proposed structuring and expected pricing of the environmental trust bonds will result in the lowest environmental control charges that are consistent with market conditions and the terms of the financing order.
196.027(2)(b)1.c.
c. That the financing order is otherwise consistent with the public interest, and is prudent, reasonable, and appropriate.
196.027(2)(b)2.
2. In a financing order issued to an energy utility, the commission shall do all of the following:
196.027(2)(b)2.a.
a. Except as provided in
subds. 2. c. and
4., specify the amount of environmental control costs and financing costs that may be recovered through environmental control charges and the period over which such costs may be recovered.
196.027(2)(b)2.b.
b. For the period specified in
subd. 2. a. require that, as long as any customer obtains distribution service from the energy utility or its successors, the customer shall pay environmental control charges to the energy utility or its assignees regardless of whether the customer obtains other service from a different energy utility or other energy supplier.
196.027(2)(b)2.c.
c. Include a formula-based mechanism for making any adjustments in the environmental control charges that customers are required to pay under the order and making any adjustments that are necessary to correct for any overcollection or undercollection of the charges or to otherwise ensure the energy utility's or assignee's timely recovery of environmental control costs and financing costs.
196.027(2)(b)2.d.
d. Specify the environmental control property that is created and that may be used to pay or secure environmental trust bonds.
196.027(2)(b)2.e.
e. If considered appropriate by the commission, include a provision allowing for the retirement of environmental trust bonds before their termination dates.
196.027(2)(b)2.f.
f. Include any other conditions that the commission considers appropriate and that are not otherwise inconsistent with this section.
196.027(2)(b)3.
3. A financing order issued to an energy utility may provide that the energy utility's acquisition of environmental control property specified in
subd. 2. d. is conditioned upon, and shall be simultaneous with, the sale of the environmental control property to an assignee and the pledge of the environmental control property to secure environmental trust bonds.
196.027(2)(b)4.a.a. If the commission issues a financing order, the commission shall apply, at least annually, the formula-based mechanism specified in
subd. 2. c. and, based on estimates of demand and other mathematical factors, make the adjustments described in
subd. 2. c. The commission shall make the adjustments within 45 days of the anniversary date on which environmental trust bonds are issued and after expiration of the comment period described in
subd. 4. b.
196.027(2)(b)4.b.
b. The commission may not hold a hearing for the purpose of making an adjustment under
subd. 4. a., but shall allow interested parties 30 days to make comments limited to any error in the application of the formula-based mechanism relating to the appropriate amount of any overcollection or undercollection of environmental control charges and the appropriate amount of an adjustment.
196.027(2)(b)5.
5. A financing order is irrevocable and, except as provided in
subds. 2. c. and
4., the commission may not reduce, impair, or otherwise adjust environmental control charges approved in the order.
196.027(2)(c)
(c)
Subsequent orders. The commission may commence a proceeding and issue a subsequent financing order that provides for retiring or refunding environmental trust bonds issued pursuant to the original financing order if the commission included a provision described in
par. (b) 2. e. in the original financing order and if the commission finds that the subsequent financing order satisfies all of the criteria specified in
par. (b) 1. a.,
b., and
c.
196.027(2)(d)
(d)
Judicial review. A financing order or an order rejecting an application under
par. (b) 1. is reviewable by the circuit court for Dane County under
ch. 227, except that the court shall proceed to hear and determine the action as expeditiously as practicable and give the action precedence over other matters not accorded similar precedence by law.
196.027(2)(e)1.1. A financing order shall remain in effect until the environmental trust bonds issued pursuant to the order have been paid in full and the financing costs of the bonds have been recovered in full.
