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LRB-5221/1
MDK:kjf&wlj
2019 - 2020 LEGISLATURE
January 16, 2020 - Introduced by Senator LeMahieu, cosponsored by
Representative Kuglitsch, by request of Public Service Commission.
Referred to Committee on Utilities and Housing.
SB689,1,7 1An Act to repeal 196.209; to amend 30.025 (4) (c), 196.07 (1), 196.191 (3) (a) 2.,
2196.203 (4m) (a), 196.31 (1) (intro.), 196.49 (5g) (ar) 1m. d., 196.491 (2) (f),
3196.491 (3) (a) 1., 196.491 (3) (a) 2m. a., 196.499 (1) (b), 196.499 (1) (f) and 196.85
4(3); to repeal and recreate 196.31 (2m); and to create 196.026 (7m), 196.20
5(9) and 196.315 of the statutes; relating to: making various changes to statutes
6administered by the Public Service Commission and requiring investor-owned
7energy utilities to fund a consumer advocate.
Analysis by the Legislative Reference Bureau
This bill provides for funding for a consumer advocate and makes various
changes to statutes administered by the Public Service Commission.
Consumer advocate funding. The bill requires the PSC to require
investor-owned electric and natural gas public utilities (energy utilities) to provide
funding to a “consumer advocate,” which is defined as the Citizens Utility Board that
was created by the legislature in 1979 and subsequently dissolved and reorganized
as a nonstock, nonprofit corporation. All actions of the consumer advocate that are
funded under the bill must be directed toward a duty to represent and protect the
interests of residential, small commercial, and small industrial energy customers of
the state. The bill requires the consumer advocate to annually file with the PSC a
budget, which the PSC must approve if it is consistent with the foregoing duty and

covers reasonable annual costs, including salaries, benefits, overhead expenses, an
operating reserve, and any other costs directly or indirectly related to representing
and protecting the interests of the foregoing customers. However, the bill allows the
PSC to approve the budget with conditions and modifications that the PSC
determines are necessary. If the PSC fails to take final action within 60 days after
a budget is filed, the PSC is considered to have approved the budget.
The bill limits the total annual funding for the consumer advocate to a
maximum of $900,000. Each energy utility's share of that total is based on an
individual energy utility's proportionate share of residential, small commercial, and
small industrial customer meters in the state, which each energy utility must
annually report to the PSC. The bill requires the PSC to ensure in rate-making
orders that energy utilities recover the funding from their customers. The PSC must
apply escrow accounting treatment to energy utility expenditures for the funding.
The bill prohibits the consumer advocate from using the funding for lobbying
or defraying the cost of participating in proceedings involving the rates or practices
of municipal utilities and no other public utilities. The bill also limits the amount
that the PSC may compensate the consumer advocate for participating in PSC
proceedings. Under current law, if certain requirements are satisfied, the PSC is
allowed to compensate participants in proceedings who are not public utilities.
Under this bill, the PSC may grant no more than $100,000 annually in such
compensation to the consumer advocate.
Energy-related changes. The bill does all of the following:
1. Allows an applicant for a PSC-issued certificate that is required for a project
involving a high-voltage transmission line to agree with the Department of Natural
Resources to extend the deadline for DNR to take action on certain water-related
permit applications that are also required for the project. Current law allows a
similar agreement for an applicant for a different PSC-issued certificate that is
required to construct a high-voltage transmission line.
2. Allows the PSC to approve without a hearing certain public utility fuel cost
plans that are contained in settlement agreements.
3. Increases a cost threshold for exempting certain projects of natural gas
utilities from the requirement to obtain a PSC-issued certificate. Under current law,
the exemption applies if the project's estimated gross cost is not more than a specified
dollar amount or 4 percent of the natural gas utility's operating revenues in the prior
year, whichever is less. Under current law, the dollar amount is $2,500,000. The bill
increases the dollar amount to $5,000,000.
4. Allows a person who proposes to construct a large electric generating facility
and an associated high-voltage transmission line to submit a single application that
covers the two PSC-issued certificates that are required, instead of submitting one
application for the certificate for the facility and a separate application for the
certificate for the line as required under current law. If a person submits a single
application, the PSC must conduct a single proceeding for issuing the two
certificates.
5. Eliminates a requirement for the PSC to prepare an environmental
assessment on its biennial strategic energy assessment.

Other changes. The bill also does the following:
1. Requires the PSC to ensure in rate-making orders that a public utility
recovers from its ratepayers reasonable amounts spent on pension and other
post-employment benefit costs. Also, if requested by a public utility, the PSC must
prescribe escrow accounting treatment for that recovery.
2. Allows the PSC to collect past due assessments that are owed by persons
subject to the PSC's jurisdiction. Current law specifies a procedure for collection that
involves the Department of Administration. The bill eliminates that procedure and
allows the PSC to collect the amount due in accordance with procedures the PSC
establishes.
3. Requires public utilities to file annual balance sheets with the PSC by May
1, instead of April 1, as required under current law.
4. Eliminates a requirement for the PSC to promulgate rules establishing
privacy guidelines for telecommunications services.
5. Eliminates a requirement for telecommunications providers to address
privacy considerations before introducing new telecommunications service.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB689,1 1Section 1. 30.025 (4) (c) of the statutes is amended to read:
SB689,3,72 30.025 (4) (c) Notwithstanding the deadline in par. (b), upon agreement
3between the department and a person who submits an application under s. 196.49
4or
196.491 (3) for a permit to construct a high-voltage transmission line, the
5department shall grant or deny the application within 45 days after the department
6receives all of the information necessary for it to carry out its obligations under this
7subsection, as determined by the department.
SB689,2 8Section 2 . 196.026 (7m) of the statutes is created to read:
SB689,3,119 196.026 (7m) If a public utility's fuel cost plan is contained in a settlement
10agreement, the commission may approve the fuel cost plan for the first year of a
112-year settlement agreement without holding a hearing.
SB689,3 12Section 3. 196.07 (1) of the statutes is amended to read:
SB689,4,8
1196.07 (1) Each public utility shall close its accounts annually on December 31
2and promptly prepare a balance sheet of that date. On or before the following April
3May 1 every public utility shall file with the commission the balance sheet together
4with
; counts of the numbers of meters serving residential, small commercial, and
5small industrial customers as of December 31; and
any other information the
6commission prescribes, verified by an officer of the public utility. The commission,
7for good cause shown, may extend the time for filing the balance sheet and prescribed
8information.
SB689,4 9Section 4 . 196.191 (3) (a) 2. of the statutes is amended to read:
SB689,4,1310 196.191 (3) (a) 2. The commission may modify the new tariff after an
11opportunity for a hearing only to the extent that the tariff violates s. 196.209,
12196.212, or 196.219 and only to the extent that s. 196.209, 196.212, or 196.219 applies
13to the telecommunications utility or alternative telecommunications utility.
SB689,5 14Section 5. 196.20 (9) of the statutes is created to read:
SB689,4,2015 196.20 (9) The commission shall ensure in rate-making orders that a public
16utility recovers from its ratepayers reasonable amounts that the public utility
17spends on pension and other post-employment benefit costs. If requested by the
18public utility, the commission shall prescribe escrow accounting treatment for the
19recovery of public utility expenditures related to pension and other
20post-employment benefit costs.
SB689,6 21Section 6 . 196.203 (4m) (a) of the statutes is amended to read:
SB689,5,222 196.203 (4m) (a) The commission may impose s. 196.02 (1), (4), or (5), 196.04,
23196.135, 196.14, 196.197, 196.199, 196.207, 196.208, 196.209, 196.218, 196.219 (1),
24(2) (b), (c), or (d), (2r), or (3) (a), (d), (j), (m), (n), or (o), 196.25, 196.26, 196.39, 196.395,

1196.40, 196.41, 196.43, 196.44, 196.65, 196.66, 196.81, 196.85, 196.858, or 196.859
2on an alternative telecommunications utility.
SB689,7 3Section 7. 196.209 of the statutes is repealed.
SB689,8 4Section 8 . 196.31 (1) (intro.) of the statutes is amended to read:
SB689,5,85 196.31 (1) (intro.) In Except as provided in sub. (2m), in any proceeding before
6the commission, the commission shall compensate any participant in the proceeding
7who is not a public utility, for some or all of the reasonable costs of participation in
8the proceeding if the commission finds that:
SB689,9 9Section 9 . 196.31 (2m) of the statutes is repealed and recreated to read:
SB689,5,1210 196.31 (2m) The commission may grant no more than $100,000 annually in
11compensation under this section to the consumer advocate, as defined in s. 196.315
12(2) (a).
SB689,10 13Section 10 . 196.315 of the statutes is created to read:
SB689,5,20 14196.315 Consumer advocate funding. (1) Legislative statement of intent
15and purpose.
It is in the public interest that there be an independent, nonpartisan
16consumer advocate for residential, small commercial, and small industrial energy
17utility customers of this state and that the advocate be sufficiently funded by those
18customers to allow for the representation and protection of their interests before the
19commission and other venues. All actions by the advocate funded under this section
20shall be directed toward such duty.
SB689,5,21 21(2) Definitions. In this section:
SB689,5,2322 (a) “Consumer advocate" means the body created under s. 199.04 (1), dissolved
23under s. 199.17, and reorganized as a nonstock, nonprofit corporation under ch. 181.
SB689,5,2524 (b) “Energy utility" means an investor-owned electric or natural gas public
25utility.
SB689,6,1
1(c) “Municipal utility” has the meaning given in s. 196.377 (2) (a) 3.
SB689,6,6 2(3) Funding. (a) Annually, within 60 days after a budget under sub. (5) is
3approved, each energy utility shall pay to the consumer advocate the amount
4specified under sub. (5) (e). In any year, the total of all amounts required to be paid
5by energy utilities to the consumer advocate under this subsection may not exceed
6$900,000.
SB689,6,77 (b) The funds provided under par. (a) may not be used for any of the following:
SB689,6,88 1. Lobbying, as defined in s. 13.62 (10).
SB689,6,109 2. Defraying the cost of participating in proceedings involving the rates or
10practices of municipal utilities and no other public utilities.
SB689,6,1311 (c) The consumer advocate shall retain all relevant records supporting its
12expenditure of funds provided under par. (a) for 3 years after receipt of the funds and
13shall grant the commission access to the records upon request.
SB689,6,17 14(4) Cost recovery. (a) Rate-making orders. The commission shall ensure in
15rate-making orders that an energy utility recovers from its residential, small
16commercial, and small industrial customers the amounts the energy utility pays
17under sub. (3) (a).
SB689,6,1918 (b) Accounting. The commission shall apply escrow accounting treatment to
19expenditures required under this section.
SB689,6,21 20(5) Budget review; approval. (a) The commission shall review the budgeting
21and expenditure of funds provided to the consumer advocate under sub. (3) (a).
SB689,7,222 (b) Annually, by a date specified by the commission, the consumer advocate
23shall file for the commission's approval an annual budget as approved by the
24consumer advocate's board of directors. The commission may request additional
25information from the consumer advocate related to the budget, and may consider any

1relevant factors, including existing operating reserves and actual costs in prior years
2compared to the budgets approved by the commission.
SB689,7,103 (c) The commission shall approve a budget filed under this subsection if the
4commission determines it is consistent with sub. (1) and covers the reasonable
5annual costs of the consumer advocate, including salaries, benefits, overhead
6expenses, the maintenance of an operating reserve, and any other cost directly or
7indirectly related to representing and protecting the interests of residential, small
8commercial, and small industrial energy utility customers. The commission may
9approve the budget with such conditions and modifications as the commission
10determines are necessary.
SB689,7,1311 (d) If the commission fails to take final action under par. (c) within 60 days after
12a budget is filed with the commission, the commission is considered to have approved
13the budget that was submitted by the consumer advocate.
SB689,7,1814 (e) Subject to sub. (3) (a), the total amount of the approved budget shall be paid
15to the consumer advocate by the energy utilities. Each energy utility's share of the
16total amount shall be based on the energy utility's proportionate share of the total
17number of residential, small commercial, and small industrial customer meters
18reported by energy utilities under s. 196.07 (1).
SB689,11 19Section 11. 196.49 (5g) (ar) 1m. d. of the statutes is amended to read:
SB689,7,2220 196.49 (5g) (ar) 1m. d. For a natural gas public utility, the cost threshold is
21$2,500,000 $5,000,000 or 4 percent of the public utility's natural gas operating
22revenues in the prior year, whichever is less.
SB689,12 23Section 12. 196.491 (2) (f) of the statutes is amended to read:
SB689,8,424 196.491 (2) (f) Section 1.11 (2) (c) shall not apply to a strategic energy
25assessment prepared under par. (a) but the commission shall prepare a single

1environmental assessment on the strategic energy assessment, which shall include
2a discussion of generic issues and environmental impacts. The commission shall
3make the environmental assessment available to the public at least 30 days prior to
4the hearing under par. (g)
.
SB689,13 5Section 13 . 196.491 (3) (a) 1. of the statutes is amended to read:
SB689,8,236 196.491 (3) (a) 1. Except as provided in sub. (3b), no person may commence the
7construction of a facility unless the person has applied for and received a certificate
8of public convenience and necessity under this subsection. A person who proposes
9to construct a large electric generating facility may apply for a certificate for that
10facility and for another certificate for an associated high-voltage transmission line
11for which a certificate under this subsection is required by submitting a single
12application, and the commission shall consider that single application by conducting
13a single proceeding and applying the requirements of this subsection to each facility
14addressed in that application in the same manner that the commission applies the
15requirements of this subsection to facilities for which separate applications are filed.

16An application for a certificate issued under this subsection shall be in the form and
17contain the information required by commission rules and shall be filed with the
18commission not less than 6 months prior to the commencement of construction of a
19facility. Within 10 days after filing an application under this subdivision, the
20commission shall send an electronic copy of the application to the clerk of each
21municipality and town in which the proposed facility is to be located and to the main
22public library in each such county. At the request of such a clerk or main public
23library, the commission shall also send a paper copy of the application.
SB689,14 24Section 14 . 196.491 (3) (a) 2m. a. of the statutes is amended to read:
SB689,9,7
1196.491 (3) (a) 2m. a. The application includes some but not all of the
2information necessary to evaluate or approve the construction of transmission
3facilities that may be associated with the proposed electric generating facility; and
4a person other than the applicant will construct, or be responsible for the
5construction of, the transmission facilities; and the application is not a single
6application for both a certificate for a large electric generating facility and another
7certificate for a high-voltage transmission line
.
SB689,15 8Section 15 . 196.499 (1) (b) of the statutes is amended to read:
SB689,9,109 196.499 (1) (b) A telecommunications carrier shall be treated under ss.
10196.209, 196.218 (8) and 196.219 as a telecommunications provider.
SB689,16 11Section 16 . 196.499 (1) (f) of the statutes is amended to read:
SB689,9,1912 196.499 (1) (f) For purposes of enforcing s. 196.209, 196.218 (3) or (8), 196.219,
13196.85, or 196.858, or for purposes of approving or enforcing an interconnection
14agreement to which a telecommunications carrier is a party, a telecommunications
15carrier shall be subject to ss. 196.02 (3), 196.32, 196.33, 196.39, 196.395, 196.40,
16196.41, 196.43, 196.44 (3), and 196.48 and be treated as a party to the agreement
17under ss. 196.199 and 196.26, as a public utility under ss. 196.02 (5) and (6), 196.14,
18196.24, 196.44 (2), 196.66, and 196.85 (1), and as a telecommunications provider
19under ss. 196.25 (3) and 196.65 (3).
SB689,17 20Section 17. 196.85 (3) of the statutes is amended to read:
SB689,9,2521 196.85 (3) If any public utility, sewerage system, joint local water authority, or
22power district is billed under sub. (1), (2), or (2e) and fails to pay the bill within 30
23days or fails to file objections to the bill with the commission, as provided in sub. (4),
24the commission shall transmit to the secretary of administration a certified copy of
25the bill, together with notice of failure to pay the bill, and on the same day the

1commission shall mail by registered mail to the public utility, sewerage system, joint
2local water authority, or power district a copy of the notice that it has transmitted
3to the state treasurer. Within 10 days after receipt of the notice and certified copy
4of the bill, the secretary of administration shall levy the amount stated on the bill to
5be due, with interest, by distress and sale of any property, including stocks,
6securities, bank accounts, evidences of debt, and accounts receivable belonging to the
7delinquent public utility, sewerage system, joint local water authority, or power
8district. The levy by distress and sale shall be governed by s. 74.10, 1985 stats.,
9except that it shall be made by the secretary of administration and that goods and
10chattels anywhere within the state may be levied upon
collect the amount due in
11accordance with procedures established by the commission
.
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