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LRB-2520/1
MDK:klm
2017 - 2018 LEGISLATURE
April 4, 2017 - Introduced by Representatives Ott, Neylon, Gannon, Hutton,
Jarchow, Kremer, Sanfelippo and Skowronski, cosponsored by Senators
Stroebel and Cowles. Referred to Committee on Energy and Utilities.
AB198,1,3 1An Act to repeal 196.52 (9) (e); to renumber 196.52 (5); and to create 196.52
2(5) (a) and 196.52 (9) (fm) of the statutes; relating to: public service
3commission authority over leased generation contracts.
Analysis by the Legislative Reference Bureau
This bill allows the Public Service Commission to modify or terminate contracts
for public utilities to lease electric generating facilities from their affiliates if the
modification or termination protects and promotes the public interest. Current law
imposes requirements on the PSC's approval of such contracts, which are called
leased generation contracts. Under current law, the PSC may modify or terminate
a leased generation contract which the PSC has approved only as specified in the
contract or the PSC's order approving the contract. That limitation on the PSC's
authority is an exception to the PSC's general authority to revise and amend public
utility contracts in order to protect and promote the public interest.
The bill eliminates the above limitation on the PSC's authority. Under the bill,
as with other public utility contracts, the PSC may revise and amend leased
generation contracts, including those approved by the PSC before the bill's effective
date, to protect and promote the public interest. In addition, if a leased generation
contract has a term of ten years or more, the PSC must, every ten years after
approving the contract, determine whether to modify or terminate the contract to
protect and promote the public interest. Also, if the PSC approved, more than ten
years before the bill's effective date, a leased generation contract with a term of ten
years or more, the PSC must, as soon as practicable after the bill's effective date,

determine whether to modify or terminate the contract to protect and promote the
public interest.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB198,1 1Section 1. 196.52 (5) of the statutes is renumbered 196.52 (5) (b).
AB198,2 2Section 2. 196.52 (5) (a) of the statutes is created to read:
AB198,2,63 196.52 (5) (a) Notwithstanding s. 196.52 (9) (e), 2015 stats., in this subsection,
4“contract” includes a leased generation contract, as defined in sub. (9) (a) 3., approved
5by the commission under sub. (3) before the effective date of this paragraph .... [LRB
6inserts date].
AB198,3 7Section 3. 196.52 (9) (e) of the statutes is repealed.
AB198,4 8Section 4. 196.52 (9) (fm) of the statutes is created to read:
AB198,2,109 196.52 (9) (fm) 1. In this paragraph, “leased generation contract” means a
10leased generation contract with a term of 10 years or more.
AB198,2,1911 2. Every 10 years after the commission approves a leased generation contract
12under sub. (3), the commission shall determine whether to modify or terminate the
13leased generation contract to protect and promote the public interest, except that for
14each leased generation contract approved by the commission more than 10 years
15before the effective date of this subdivision .... [LRB inserts date] that is in effect on
16the effective date of this subdivision .... [LRB inserts date], the commission shall, as
17soon as practicable after the effective date of this subdivision .... [LRB inserts date],
18determine whether to modify or terminate the leased generation contract to protect
19and promote the public interest.
AB198,2,2020 (End)
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