Chapter PSC 112

Chapter PSC 112

CONSTRUCTION BY ELECTRIC PUBLIC UTILITIES
AND EXTENSIONS OF ELECTRIC SERVICE

PSC 112.01   Application of rules.

PSC 112.02   Definitions.

PSC 112.03   New service in a municipality.

PSC 112.04   Interconnection projects.

PSC 112.05   Construction of electric utility facilities.

PSC 112.06   Applications for commission authorization.

PSC 112.07   Processing of applications by the commission.

PSC 112.073   Notification of additional work areas.

PSC 112.075   Emergency work.

PSC 112.08   Extensions of electric service under s. 196.495, Stats.

Ch. PSC 112 Note Note: Chapter PSC 112 as it existed on November 30, 1995 was repealed and a new chapter PSC 112 was created effective December 1, 1995.

PSC 112.01 PSC 112.01 Application of rules.

PSC 112.01(1) (1) This chapter applies to proposed construction by any electric public utility, as defined in s. 196.01, Stats.

PSC 112.01 Note Note: Additional requirements relating to certificates for proposed large or bulk electric generating facilities of 12,000 kW or more nominal capacity, or a high-voltage transmission line with associated facilities exceeding one mile in length designed for operation at 100 kV or more, are included in ss. PSC 111.41 to 111.43.

PSC 112.01(2) (2) Section PSC 112.08 applies to electric public utilities as defined in s. 196.01 (5), Stats., and to electric cooperative associations.

PSC 112.01 History History: Cr. Register, November, 1995, No. 479, eff. 12-1-95; correction in (2) made under s. 13.93 (2m) (b) 7., Stats., Register April 2007 No. 616.

PSC 112.02 PSC 112.02 Definitions. In this chapter:

PSC 112.02(1) (1) “Begin construction” means site clearing, excavation, placement of facilities, or any other substantial action adversely affecting the natural environment of the site or physical modification to equipment at the site which would not be required if the proposed project was not approved, but does not include borings necessary to determine foundation conditions or other preconstruction monitoring or surveying to establish background information related to site or environmental suitability.

PSC 112.02(2) (2) “Commission” means the public service commission.

PSC 112.02(3) (3) “Distribution system” means electric lines and associated facilities, designed and operated at less than 40 kV, that deliver power to customers.

PSC 112.02(4) (4) “Gross cost” means the total expenditures required to accomplish the purpose of the project. “Gross cost” does not include any credit for the value of salvaged facilities, but does include:

PSC 112.02(4)(a) (a) The cost of any removals or demolition of existing structures which may be required.

PSC 112.02(4)(b) (b) Peripheral construction such as relaying or switching facilities made necessary at other system substations or terminations remote from the project area itself.

PSC 112.02(4)(c) (c) Related operating and maintenance charges for building remodeling projects and replacements and modifications at generating plants.

PSC 112.02(5) (5) “kV” means kilovolt, or 1,000 volts.

PSC 112.02(6) (6) “kW” means kilowatt, or 1,000 watts.

PSC 112.02(7) (7) “Municipality” means a town, village, city, or county.

PSC 112.02(8) (8) “Transmission line” means an electric line, designed and operated at 40 kV or higher voltage.

PSC 112.02(9) (9) “Transmission system” means electric lines and associated facilities, designed and operated at 40 kV or higher voltage, that transmit power from generating plants to and between distribution systems.

PSC 112.02 History History: Cr. Register, November, 1995, No. 479, eff. 12-1-95; CR 07-044: am. (1) Register May 2008 No. 629, eff. 6-1-08.

PSC 112.03 PSC 112.03 New service in a municipality. No electric utility may begin construction, install or place in operation any physical facilities for furnishing retail electric service in a municipality in which the utility has not rendered retail electric service, without the commission’s prior approval under s. PSC 112.07.

PSC 112.03 History History: Cr. Register, November, 1995, No. 479, eff. 12-1-95.

PSC 112.04 PSC 112.04 Interconnection projects. No electric utility may begin construction, install or place in operation an initial interconnection with the transmission system of another electric utility, with which it has no existing transmission interconnections, without the commission’s prior approval under s. PSC 112.07. Any subsequent interconnection by mutual agreement with the same electric utility does not require commission approval except as provided in s. PSC 112.05. The electric utility shall, however, report each subsequent interconnection to the commission at least 90 days before it begins construction. The report shall include a description of the project, its location, the estimated gross cost, and a discussion of the need. Electric utilities may, without commission authorization, establish temporary or emergency interconnections between their systems by mutual agreement, but shall promptly report such interconnections to the commission within 10 days of the date established and the date discontinued.

PSC 112.04 History History: Cr. Register, November, 1995, No. 479, eff. 12-1-95.

PSC 112.05 PSC 112.05 Construction of electric utility facilities.

PSC 112.05(1) (1) No electric utility may begin construction, install or place in operation any of the following facilities whose estimated gross cost exceeds the applicable amount specified in sub. (3), without prior commission approval under s. PSC 112.07:

PSC 112.05(1)(a) (a) A generating plant or unit.

PSC 112.05(1)(b) (b) A replacement, modification or addition at a generating plant. This paragraph applies to projects or combinations of projects where the same replacement, modification or addition is known to be required at more than one unit at the same plant over a reasonably short period of time and the total cost of the combined work exceeds the applicable amount specified in sub. (3). This paragraph also applies to the initial construction of major new waste disposal facilities for the plant, even if not located at or adjacent to the existing plant site. This paragraph does not apply to replacements, modifications or repairs to a hydroelectric dam or related civil works to comply with dam safety or similar regulatory requirements, if the capacity or operation of the generating facilities is not significantly changed.

PSC 112.05(1)(c) (c) A project for constructing or rebuilding a transmission line, including necessary terminations and related new substation or substation additions. This paragraph does not apply to the relocation or modification of a segment of an existing transmission line, if the utility is ordered to relocate or modify the line to accommodate highway or airport construction, nor to the reconstruction or restoration of a segment of an existing transmission line made necessary by storm damage.

PSC 112.05(1)(d) (d) A new substation or switching station.

PSC 112.05(1)(e) (e) An addition to or replacement at an existing substation or switching station.

PSC 112.05(1)(f) (f) A distribution system extension, conversion to a higher voltage or conversion from overhead to underground construction.

PSC 112.05(1)(g) (g) A new building or any addition to or remodeling of an existing building. This paragraph applies to the purchase of an existing building by a utility for conversion to utility use.

PSC 112.05(1m) (1m) 

PSC 112.05(1m)(a) (a) No public utility may begin a project to construct or rebuild a transmission line whose length exceeds 10 miles and whose cost is less than the applicable amount specified in sub. (3) without first filing a report under par. (b) and securing commission approval under par. (c). The report and commission approval are not required for projects entirely within existing electric utility transmission line right of way.

PSC 112.05(1m)(b) (b) The utility shall file the report required under this subsection at least 90 days before it intends to begin construction or rebuilding. The report shall include a description of the project, its location and proposed route or routes, the estimated cost and a discussion of the need for the project.

PSC 112.05(1m)(c) (c) After reviewing the report, the commission may do any of the following:

PSC 112.05(1m)(c)1. 1. Approve the project by acknowledging, in writing, receipt of the report and accepting it for filing.

PSC 112.05(1m)(c)2. 2. Direct, in writing, that the project shall not proceed until specific approval is granted under s. 196.49, Stats.

PSC 112.05(1m)(c)3. 3. Approve the project by taking no action within 90 days of receiving the utility’s written report.

PSC 112.05(1m)(d) (d) This subsection does not apply to a project that requires a certificate of public convenience and necessity under s. 196.491 (3), Stats.

PSC 112.05(2) (2) A Wisconsin electric utility proposing to construct, install or place in operation any of the utility facilities listed in sub. (1) in another state in which it serves shall notify the commission at least 60 days before beginning construction. The notification shall include a description of the project, its location, the estimated cost, a discussion of need, permits or approvals required by the other state or local governments, and the approximate jurisdictional allocation of the cost between Wisconsin and the other state. Notwithstanding sub. (3), if a significant portion of the cost of the project will be allocated to Wisconsin for ratemaking purposes, the commission may require that the utility submit an application under s. PSC 112.06, for commission authorization prior to construction, installation or operation.

PSC 112.05(3) (3) 

PSC 112.05(3)(a) (a) Cost thresholds for projects requiring commission review and approval under this section are those specified in s. 196.49 (5g) (ar), Stats., as revised under par. (b).

PSC 112.05(3)(b) (b) Beginning on May 1, 2014, and on May 1 of each successive even-numbered year thereafter, the commission shall adjust the cost thresholds in s. 196.49 (5g) (ar), Stats., to reflect changes to the cost of electric utility construction based on the cost index numbers published in the “Handy-Whitman Index of Public Utility Construction Costs, Cost Trends of Electric Utility Construction — North Central Region for Total Transmission Plant”.

PSC 112.05(3)(c) (c) The commission shall notify all electric utilities of the resulting adjusted cost limits by May 15 of each even-numbered year and shall publicize the adjusted cost limits on the commission’s website. If the Handy-Whitman Index is no longer available, an equivalent successor index may be used which is generally recognized by the electric industry and acceptable to the commission.

PSC 112.05 Note Note: The commission maintains or has access to the Handy-Whitman Index of Public Utility Construction Costs and this reference or a copy may be reviewed by contacting the commission’s offices.

PSC 112.05 History History: Cr. Register, November, 1995, No. 479, eff. 12-1-95; am. (1m) (a), (2) and (3), Register, October, 1998, No. 514, eff. 11-1-98; CR 14-053: renum. (3) (a) (intro.) to (3) (a) and am., r. (3) (a) 1. to 3., am. (3) (b), cr. (3) (c) Register April 2015 No. 712, eff. 5-1-15; correction in (3) (a), (b) made under s. 13.92 (4) (b) 7., Stats., Register January 2017 No. 733.

PSC 112.06 PSC 112.06 Applications for commission authorization.

PSC 112.06(1) (1) Prior to filing an application. Before filing an application for commission authorization under s. 196.49, Stats., the applicant shall do all of the following:

PSC 112.06(1)(a) (a) Notify the department and the commission of its intent to seek commission authorization.

PSC 112.06(1)(b) (b) Consult with commission staff, in cooperation with staff from the department, on the scope of the proposed project, the alternatives that must be considered in the application, and additional information that the commission will require as part of the commission authorization application.

PSC 112.06(1m) (1m) An electric utility seeking authorization from the commission for a project under s. PSC 112.03, 112.04 or 112.05 shall submit an application to the commission including all of the following, where applicable:

PSC 112.06 Note Note: Section PSC 111.53 prescribes the contents of an application for commission approval to construct, install or place in operation a bulk or large electric generating facility and s. PSC 111.55 prescribes the contents of an application for commission approval to construct, install or place in operation a high-voltage transmission line, including related substation construction.

PSC 112.06(1m)(a) (a) A description of the project, including:

PSC 112.06(1m)(a)1. 1. Facility design, size, capacity and voltage.

PSC 112.06(1m)(a)2. 2. Line design, size and material.

PSC 112.06(1m)(a)3. 3. Line length and right-of-way width required.

PSC 112.06(1m)(a)4. 4. The size of the plant’s or site’s developed area.

PSC 112.06(1m)(a)5. 5. The approximate construction schedule.

PSC 112.06(1m)(b) (b) The gross cost and proposed method of financing the project.

PSC 112.06(1m)(c) (c) The purpose and necessity of the project with supporting data.

PSC 112.06(1m)(d) (d) The effect of the project on cost of operation and on the quality and reliability of service.

PSC 112.06(1m)(e) (e) A description of and the cost of any property being replaced.

PSC 112.06(1m)(f) (f) A description of and the gross cost of alternative methods, locations or routes which the electric utility considered for accomplishing the purpose of the project with a statement of the reasons for rejecting these alternatives.

PSC 112.06(1m)(g) (g) Environmental information including, where applicable:

PSC 112.06(1m)(g)1. 1. A map or drawing of the affected part of the existing electric system clearly showing the location of the proposed sites or routes of the proposed facilities and any alternate sites or routes considered.

PSC 112.06(1m)(g)2. 2. The proximity to designated flood plains or flood prone areas.