Chapter PSC 118

PSC 118.01(1) (1) This chapter applies to each Wisconsin electric provider that is subject to s. 196.378 (2) (a), Stats., and to any member or customer of an electric provider.

PSC 118.01(2) (2) The commission may consider exceptional or unusual situations and may, by order, apply different requirements to an individual facility than those provided in this chapter.

PSC 118.01(3) (3) This chapter should be construed liberally in favor of the creation of RRCs.

PSC 118.01 History History: CR 00-065: cr. Register July 2001, No. 547 eff. 8-1-00; CR 06-112: am. Register May 2007 No. 617, eff. 6-1-07; CR 10-147: renum. 118.01 to be 118.01 (1) and am., cr. (2) Register March 2012 No. 675, eff. 4-1-12; CR 13-040: am. (1), cr. (3) Register April 2014 No. 700, eff. 5-1-14.

PSC 118.02 PSC 118.02 Definitions. The definitions specified in s. 196.378, Stats., apply to this chapter. In addition, in this chapter:

PSC 118.02(1e) (1e) “Biogas” means a gas created by the anaerobic digestion or fermentation of biomass, food processing waste or discarded food.

PSC 118.02(1m) (1m) “Certified displacement facility” means a displacement facility that the commission certifies under s. PSC 118.055.

PSC 118.02(1s) (1s) “Certified renewable facility” means an electric generating facility that the commission certifies under s. PSC 118.05.

PSC 118.02(2) (2) “Compliance period” means a calendar year, beginning January 1, during which an electric provider is required to achieve a renewable energy percentage under s. 196.378 (2) (a), Stats.

PSC 118.02(3) (3) “Commission” means the public service commission.

PSC 118.02(3m) (3m) “Densified fuel pellets” means pellets made from waste material that does not include garbage, as defined in s. 289.01 (9), Stats., and that contains no more than 30 percent fixed carbon.

PSC 118.02(4) (4) “Designated representative” means the person authorized by the electric provider to register a renewable facility or non-electric facility with the program administrator, or to purchase or sell renewable energy certificates or RRCs.

PSC 118.02(5) (5) “Displaced conventional electricity” means electricity derived from conventional resources that an electric provider, or a customer or member of the electric provider, would have used except that the person used instead a certified displacement facility.

PSC 118.02(5g) (5g) “Displacement facility” means any of the following when used by an electric provider, or by a customer or member of the electric provider:

PSC 118.02(5g)(a) (a) A solar water heater.

PSC 118.02(5g)(b) (b) A solar light pipe.

PSC 118.02(5g)(c) (c) A ground source heat pump.

PSC 118.02(5g)(d) (d) An installation generating thermal output from biomass, biogas, synthetic gas, densified fuel pellets, or fuel produced by pyrolysis.

PSC 118.02(5g)(dm) (dm) An installation that recovers heat that is a byproduct of a manufacturing process.

PSC 118.02(5g)(e) (e) Any other installation under s. 196.378 (3) (a) 1m., Stats., identified by the commission that meets the criteria specified in this chapter.

PSC 118.02(5m) (5m) “Division administrator” means the administrator of the commission’s division responsible for energy regulation.

PSC 118.02(6) (6) “MWh” means megawatt-hour of electricity.

PSC 118.02(6r) (6r) “Plasma gasification” means the process of using an electric arc gasifier at a high temperature to break down waste material into gases and solids.

PSC 118.02(7) (7) “Program administrator” means the person who carries out the administrative responsibilities related to the renewable energy tracking system.

PSC 118.02(7g) (7g) “Pyrolysis” means an industrial process that heats organic or waste material under pressure in an oxygen-starved environment to break the material down into gases, liquid and solid residues.

PSC 118.02(7r) (7r) “Renewable energy certificate” means an electronic certificate representing one MWh of total renewable energy from a certified renewable facility that meets all of the following requirements:

PSC 118.02(7r)(a) (a) The MWh is physically metered with the net generation measured at the certified renewable facility’s bus bar.

PSC 118.02(7r)(b) (b) The MWh represents renewable energy that is delivered to a retail customer with the retail sale measured at the customer’s meter, ignoring the transmission and distribution losses between the bus bar and the customer’s meter.

PSC 118.02(7r)(c) (c) The MWh is tracked in the renewable energy tracking system.

PSC 118.02(7r)(d) (d) The facility meets the applicable requirements of ss. PSC 118.03 and 118.04.

PSC 118.02(8) (8) “RRC” means a renewable resource credit.

PSC 118.02(9) (9) “Renewable energy tracking system” means a program that tracks the selling, transferring, purchasing, and retiring of renewable energy certificates and RRCs under s. 196.378 (3) (a), Stats., and meets the criteria in s. PSC 118.06.

PSC 118.02(10) (10) “Renewable resource credit” means either of the following:

PSC 118.02(10)(a) (a) One renewable energy certificate that exceeds an electric provider’s minimum percentage requirement specified in s. 196.378 (2) (a), Stats., and meets the applicable requirements of ss. PSC 118.03 and 118.04.

PSC 118.02(10)(b) (b) An electronic certificate representing one MWh of displaced conventional electricity, as calculated under s. PSC 118.09.

PSC 118.02(11) (11) “Retail customer” means a customer that receives retail electricity in Wisconsin.

PSC 118.02(14) (14) “Solar light pipe” means a device that concentrates and transmits sunlight through a roof to an interior space, employing highly-reflective material inside the device to focus and direct the maximum available sunlight to the interior space.

PSC 118.02(15) (15) “Solar water heater” means a device that concentrates and collects solar radiation to heat water for domestic use, pool heating, space heating, or ventilation air heating.

PSC 118.02(16) (16) “Synthetic gas” means gas created by plasma gasification or pyrolysis.

PSC 118.02(17) (17) “Tracking system account” means the account that the program administrator maintains in order to track the creation, sale, transfer, purchase, and retirement of a renewable energy certificate or an RRC by a renewable energy tracking system participant.

PSC 118.02 History History: CR 00-065: cr. Register July 2001, No. 547 eff. 8-1-01; CR 06-112: r. (5) and (9), am. (7), (10) and (11), r. and recr. (13) Register May 2007 No. 617, eff. 6-1-07; CR 10-147: renum. (1) to be (1s) and am., cr. (1e), (1m), am. (2), cr. (3m), am. (4), cr. (5), (5m), am. (6), cr. (6g), (6r), am. (7), cr. (7g), (7r), (9), renum. (10) to be (10) (intro.) and am., cr. (10) (a), (b), renum. (12) to be (17) and am., r. (13), cr. (14) to (16) Register March 2012 No. 675, eff. 4-1-12; republished to insert text inadvertently excluded from (4) Register January 2014 No. 697; CR 13-040: am. (1m), (5), renum. (6g) (intro.) to (5g) (intro.) and am., renum. (6g) (a) to (e) to (5g) (a) to (e) Register April 2014 No. 700, eff. 5-1-14; correction in (17) made under s. 35.17, Stats., Register April 2014 No. 700; CR 14-053: am. (17) Register April 2015 No. 712, eff. 5-1-15; CR 20-083: cr. (5g) (dm) Register October 2021 No. 790, eff. 11-1-21.

PSC 118.025 PSC 118.025 Renewable resource designation. Biogas is a renewable resource under s. 196.378 (1) (h) 2., Stats.

PSC 118.025 History History: CR 10-147: cr. Register March 2012 No. 675, eff. 4-1-12.

PSC 118.03 PSC 118.03 Facilities eligible for the minimum percentage requirement and for creating renewable resource credits.

PSC 118.03(1) (1) An electric provider may use the output of a renewable facility to meet a minimum percentage requirement under s. 196.378 (2) (a), Stats., or to create an RRC for renewable energy only if the renewable facility that is the source of the electric provider’s renewable energy meets all of the following requirements:

PSC 118.03(1)(a) (a) The energy output of the renewable facility is physically metered and the accuracy of the metering is subject to verification by the program administrator or the commission.

PSC 118.03(1)(b) (b) The renewable facility registers with, and is certified by, the commission under s. PSC 118.05.

PSC 118.03(1)(c) (c) The renewable facility is owned or operated by the electric provider, which sells the renewable energy to its retail customers or members, or the renewable facility supplies or allocates its energy under an executed wholesale purchase contract to the electric provider, which sells the renewable energy to its retail customers or members.

PSC 118.03(2) (2) An electric provider or customer or member of an electric provider may create an RRC for conventional electricity displaced by the use of a displacement facility only if the displacement facility meets all of the following requirements:

PSC 118.03(2)(a) (a) Is registered with, and is certified by, the commission under s. PSC 118.055.

PSC 118.03(2)(c) (c) Will replace or reduce the use of an electric device or electric service used for the same purpose at the same location as the displacement facility.

PSC 118.03(2)(d) (d) Satisfies any other condition established by the commission consistent with s. 196.378 (3) (a) 1m., Stats.

PSC 118.03(3) (3) 

PSC 118.03(3)(a) (a) An electric provider may only use the renewable portion of the production from a facility using both a renewable and conventional fuel, based on the relative energy content of the fuels, to meet a minimum percentage requirement under s. 196.378 (2) (a), Stats.

PSC 118.03(3)(b) (b) An electric provider or customer or member of an electric provider may only use the renewable portion of the production from a facility using both a renewable and conventional fuel, based on the relative energy content of the fuels, to create RRCs.

PSC 118.03(3m) (3m) An electric provider or customer or member of an electric provider may use biogas or synthetic gas it creates under sub. (1) or (2), or may use biogas or synthetic gas provided by another entity under sub. (4).

PSC 118.03(4) (4) 

PSC 118.03(4)(a) (a) An electric provider may under par. (b) or a customer or member of an electric provider may under par. (c) use the production of a facility that has contracted with a producer of biogas or synthetic gas for ownership of the gas and that has sufficient contracts to deliver the gas to the facility, according to the resulting number of MWh that the facility generates or the amount of conventional electricity that the facility displaces.

PSC 118.03(4)(b) (b) An electric provider may use the production of a facility that satisfies par. (a) to meet a minimum percentage requirement under s. 196.378 (2) (a), Stats., or to create an RRC if the electric provider demonstrates all of the following:

PSC 118.03(4)(b)1. 1. The gas producer meters the amount of gas delivered, using metering devices that comply with ss. PSC 134.27 and 134.28.

PSC 118.03(4)(b)2. 2. The gas producer measures the heat content of the gas at least monthly.

PSC 118.03(4)(b)3. 3. The facility complies with sub. (1) or (2).

PSC 118.03(4)(c) (c) A customer or member of an electric provider may use the production of a facility that satisfies par. (a) to create a RRC if the electric provider demonstrates all of the following:

PSC 118.03(4)(c)1. 1. The gas producer meters the amount of gas delivered, using metering devices that comply with ss. PSC 134.27 and 134.28.

PSC 118.03(4)(c)2. 2. The gas producer measures the heat content of the gas at least monthly.

PSC 118.03(4)(c)3. 3. The facility complies with sub. (1) or (2).

PSC 118.03(5) (5) A customer or member of an electric provider may create an RRC in the manner described in sub. (4).

PSC 118.03 History History: CR 00-065: cr. Register July 2001, No. 547 eff. 8-1-01; CR 06-112: r. (2) and (3) (a), am. (3) (b) Register May 2007 No. 617, eff. 6-1-07; CR 10-147: am. (title), (1) (intro.), (a), cons. and renum. (1) (c) 1. and 2. to be (1) (c) and am., cr. (2), renum. (3) (b) to be (3) and am., cr. (4) Register March 2012 No. 675, eff. 4-1-12; CR 13-040: am. (2) (intro.), (c), renum. (3) to (3) (a) and am., cr. (3) (b), (3m), am. (4) (a), cr. (4) (c), (5) Register April 2014 No. 700, eff. 5-1-14; corrections in (1) (intro.), (4) (b) (intro.) made under s. 35.17, Stats., Register April 2014 No. 700; CR 14-053: am. (1) (intro.), (2) (intro.), r. (2) (b), am. (4) (b) (intro.), (5) Register April 2015 No. 712, eff. 5-1-15.

PSC 118.04 PSC 118.04 Creation and transfer of renewable energy certificates and renewable resource credits.

PSC 118.04(1) (1) A renewable energy certificate or an RRC is used to meet an electric provider’s minimum percentage requirement under s. 196.378 (2) (a), Stats., in the compliance period for which the electric provider retires the renewable energy certificate or RRC, regardless of the date on which the renewable energy certificate or RRC is retired in the renewable energy tracking system.

PSC 118.04 Note EXAMPLE: A RRC created for renewable energy generated in 2011 may be used to satisfy an electric provider’s minimum percentage requirement under s. 196.378 (2) (a), Stats., in compliance years 2011 through 2015. A RRC created in 2011 may be used for compliance year 2015 even if the RRC is not retired until 2016.

PSC 118.04(1m) (1m) For purposes of determining how long a renewable energy certificate or a RRC is eligible to be used to meet an electric provider’s minimum percentage requirement under s. 196.378 (2) (a), Stats.:

PSC 118.04(1m)(a) (a) A renewable energy certificate is created when the renewable facility generates the renewable energy.

PSC 118.04(1m)(b) (b) A RRC for renewable energy is created when the renewable facility generates the renewable energy.

PSC 118.04(1m)(c) (c) A RRC for displaced conventional electricity is created in the year in which the use of the certified displacement facility displaces conventional electricity.

PSC 118.04(2) (2) 

PSC 118.04(2)(e) (e) Renewable energy or displaced conventional electricity that would meet the definition of a RRC under s. PSC 118.02 (10), except that it consists of less than one MWh, shall constitute a fraction of a RRC. A fractional RRC may not be smaller than 0.01 MWh.

PSC 118.04(2)(f) (f) Two or more electric providers may jointly purchase or sell a renewable energy certificate or a RRC.

PSC 118.04(2)(fm) (fm) Two or more customers or members of an electric provider may jointly purchase or sell a RRC.

PSC 118.04(2)(g) (g)

PSC 118.04(2)(g)1. 1. A RRC created before January 1, 2004, may be sold or used to meet an electric provider’s minimum percentage requirement under s. 196.378 (2) (a), Stats. The RRCs described in this subdivision may not be used after December 31, 2011, as provided in s. 196.378 (3) (c), Stats.

PSC 118.04(2)(g)2. 2. Renewable energy generated on or after January 1, 2004, but produced by a renewable facility that was placed into service before January 1, 2004, may only be used to create a RRC if the renewable energy constituted an incremental increase in output from the renewable facility due to capacity improvements that were made on or after January 1, 2004, as provided in s. 196.378 (3) (a) 2., Stats. The RRCs described in this subdivision may not be used to meet a minimum percentage requirement under s. 196.378 (2) (a), Stats., after the fourth year after the year in which the credit is created, as provided in s. 196.378 (3) (c), Stats. If the renewable facility was originally placed in service before January 1, 2004, but is entirely replaced with a new and more efficient facility, all of the output from the new facility constitutes an incremental increase and may be used to create RRCs.

PSC 118.04(2)(g)3. 3. A RRC created on or after January 1, 2004, that is produced by a renewable facility placed into service on or after January 1, 2004, may be sold or used to meet an electric provider’s minimum percentage requirement under s. 196.378 (2) (a), Stats. The RRCs described in this subdivision may not be used to meet a minimum percentage requirement under s. 196.378 (2) (a), Stats., after the fourth year after the year in which the credit is created, as provided in s. 196.378 (3) (c), Stats.

PSC 118.04(2)(g)4. 4. A RRC created for displaced conventional electricity may be sold or used to meet an electric provider’s minimum percentage requirement under s. 196.378 (2) (a), Stats. The RRCs described in this subdivision may not be used to meet a minimum percentage requirement under s. 196.378 (2) (a), Stats., after the fourth year after the year in which the credit is created, as provided in s. 196.378 (3) (c), Stats.

PSC 118.04(2)(g)5. 5. A renewable energy certificate that is not a RRC may not be used to meet an electric provider’s minimum percentage requirement under s. 196.378 (2) (a), Stats., for a compliance period after the year in which the renewable energy certificate was created.

PSC 118.04(3) (3) When a renewable energy certificate or a RRC is credited to an electric provider’s account or the account of a customer or member of an electric provider, the account owner may sell or transfer the renewable energy certificate or RRC to another electric provider or customer or member of an electric provider. Any person selling or transferring a renewable energy certificate or a RRC shall report the sale or transfer to the program administrator within 10 days of the transaction. The program administrator shall then credit the renewable energy tracking system account of the new owner and debit the renewable energy tracking system account of the prior owner. A renewable energy certificate or a RRC may continue to be sold or traded only if each seller or transferor reports the transaction to the program administrator within 10 days of its consummation.

PSC 118.04(4) (4) An electric provider shall annually retire renewable energy certificates and RRCs in the renewable energy tracking system to demonstrate compliance with its minimum percentage requirement under s. 196.378 (2) (a), Stats. When an electric provider uses a RRC to comply with the minimum percentage requirements of s. 196.378 (2) (a), Stats., the electric provider shall retire the RRC. When an electric provider uses a MWh of total renewable energy to comply with the minimum percentage requirements of s. 196.378 (2) (a), Stats., the electric provider shall retire the renewable energy certificate representing the MWh of total renewable energy.

PSC 118.04(5) (5) Subject to commission approval, if applicable, the program administrator may establish any procedure necessary to accurately record the creation, sale, transfer, purchase, and retirement of renewable energy certificates and RRCs.

PSC 118.04 History History: CR 00-065: cr. Register July 2001, No. 547 eff. 8-1-01; CR 06-112: r. (1) and (2) (a) to (d), cr. (2) (g), am. (3) Register May 2007 No. 617, eff. 6-1-07; CR 10-147: am. (title), cr. (1), (1m), am. (2) (e), (f), (g) 2., 3., cr. (2) (g) 4., 5., am. (3) to (5) Register March 2012 No. 675, eff. 4-1-12; CR 13-040: am. (1m) (c), cr. (2) (fm), am. (3), (4), (5) Register April 2014 No. 700, eff. 5-1-14; corrections in (1m) (intro.), (b), (2) (e), (f), (g), (3) made under s. 35.17, Stats., Register April 2014 No. 700; CR 14-053: am. (1) Register April 2015 No. 712, eff. 5-1-15.