Chapter PSC 6

Chapter PSC 6

ASSESSMENT OF COMMISSION’S HOLDING COMPANY REGULATION COSTS

PSC 6.01   Scope.

PSC 6.02   Definitions.

PSC 6.03   Occasion for assessment of expenditures.

PSC 6.04   Entities subject to assessment.

PSC 6.05   Direct assessments.

PSC 6.06   Remainder assessments.

PSC 6.07   Billing and collection procedures.

PSC 6.08   Supporting records.

Ch. PSC 6 Note Note: Chapter PSC 6 was created as an emergency rule effective May 5, 1986.

PSC 6.01 PSC 6.01 Scope. The purpose of this chapter is to implement s. 196.84, Stats., authorizing the commission to assess against a holding company or a nonutility affiliate the expenses attributable to the performance of its duties under s. 196.795, Stats.

PSC 6.01 History History: Cr. Register, November, 1986, No. 371, eff. 12-1-86.

PSC 6.02 PSC 6.02 Definitions.

PSC 6.02(1) (1) “Holding company” has the meaning set forth in s. 196.795 (1) (h), Stats.

PSC 6.02(2) (2) “Nonutility affiliate” has the meaning set forth in s. 196.795 (1) (j), Stats.

PSC 6.02(3) (3) “Public utility affiliate” has the meaning set forth in s. 196.795 (1) (l), Stats.

PSC 6.02(4) (4) “Holding company system” has the meaning set forth in s. 196.795 (1) (i), Stats.

PSC 6.02(5) (5) “Cost of any increase in regulation of any public utility affiliate” means the total of commission expenditures which are in excess of the commission expenditures which are properly assessable for utility regulation under s. 196.85, Stats., and ch. PSC 5 and which expenditures are directly or indirectly attributable to the commission’s implementation and enforcement of s. 196.795, Stats., as set forth in s. PSC 6.03.

PSC 6.02(6) (6) “Direct assessments” are charges made by the commission to holding companies or nonutility affiliates or both for the activities and expenditures set forth in s. PSC 6.05.

PSC 6.02(7) (7) “Remainder assessments” are charges made by the commission to holding companies or nonutility affiliates or both for the expenditures set forth in s. PSC 6.06. They are calculated by subtracting direct assessments from the commission’s total holding company regulation expenditures to arrive at a remainder.

PSC 6.02(8) (8) “Advance payment of a remainder assessment” means payment, in advance, of remainder assessments which have been projected for the current fiscal year but have not yet been totally incurred by the commission. This payment is calculated by adding 10% to the remainder assessment for the prior fiscal year. Payment for remainder assessment expenditures incurred in the prior fiscal year by the commission, when such payment is made during the current fiscal year, is not within the definition of “advance payment of remainder assessment.”

PSC 6.02 History History: Cr. Register, November, 1986, No. 371, eff. 12-1-86.

PSC 6.03 PSC 6.03 Occasion for assessment of expenditures. Expenditures of the commission are assessable against a holding company, or a nonutility affiliate, or both, in a holding company system whenever commission expenditures have been incurred because of any increase in regulation of a public utility affiliate, where such expenditures have been reasonably required in order for the commission to implement and enforce s. 196.795, Stats. Such assessable expenditures include, but are not limited to, expenditures incurred by the commission in carrying out the following regulatory duties:

PSC 6.03(1) (1) Granting or denying a certificate of approval to form a holding company;

PSC 6.03(2) (2) Holding a hearing concerning an application for a certificate of approval to form a holding company;

PSC 6.03(3) (3) The modification or addition of any term, limitation or condition of a certificate of approval to form a holding company;

PSC 6.03(4) (4) Determining whether a takeover of a holding company as set forth in s. 196.795 (3), Stats., is in the best interests of utility consumers, investors and the public;

PSC 6.03(5) (5) Making determinations regarding capital impairment of public utility affiliates in holding company systems;

PSC 6.03(6) (6) Examination of books, records, documents and other information relating to a holding company system;

PSC 6.03(7) (7) Conducting any litigation related to the protection of a holding company system’s business information from public disclosure;

PSC 6.03(8) (8) Monitoring and enforcing s. 196.795 (5), (c), (d), (dm), (dr), (f), (g) and (h), Stats.;

PSC 6.03(9) (9) Considering and determining, in a rate proceeding, attributions of tax and other benefits or liabilities pursuant to s. 196.795 (5) (i), Stats.;

PSC 6.03(10) (10) Regulating holding company system real estate transactions between public utility affiliates and holding companies or between public utility affiliates and nonutility affiliates in a holding company system, including leases;

PSC 6.03(11) (11) Approving or disapproving the termination of the interest of a holding company system in a public utility affiliate;

PSC 6.03(12) (12) Regulating advertising pursuant to s. 196.795 (5) (n), Stats.;

PSC 6.03(13) (13) Determining compliance with and enforcement of s. 196.795 (6m) (b), Stats., including the costs of determining the assets of each nonutility affiliate;

PSC 6.03(14) (14) Investigating and making determinations regarding the selling at retail, leasing, installing, maintaining or servicing of appliances pursuant to s. 196.795 (5) (g), Stats.;

PSC 6.03(15) (15) Investigating, and approving or disapproving, the use by nonutility affiliates of the services of employes of public utility affiliates pursuant to s. 196.795 (5) (r), Stats.;

PSC 6.03(16) (16) Regulating property contracts or arrangements between public utility affiliates and nonutility affiliates pursuant to s. 196.795 (5) (s), Stats.;

PSC 6.03(17) (17) Administering the reporting requirements set forth in s. 196.795 (6), Stats.;

PSC 6.03(18) (18) Conducting commission investigations into the impact of the operation of every holding company system on every public utility affiliate in the holding company system as set forth in s. 196.795 (7), Stats.;

PSC 6.03(19) (19) Conducting hearings and investigations to determine if any practice of a holding company system violates any provisions of s. 196.795 (5) (b) to (s), Stats., or any limitation, term or condition of the certificate of approval to form a holding company, all pursuant to s. 196.795 (7) (b), Stats.;

PSC 6.03(20) (20) Conducting all litigation arising out of any order of the commission directing a holding company system to modify or cease a practice which violates any provision of s. 196.795 (5) (b) to (s), Stats., or any limitation, term or condition of its certificate of approval to form a holding company;

PSC 6.03(21) (21) Conducting any investigation and hearing regarding the necessity of ordering a holding company to terminate its interest in a public utility affiliate under s. 196.795 (7) (c), Stats., and any litigation associated therewith;

PSC 6.03(22) (22) Conducting any intervention by the commission in any proceeding which involves an application of or issue related to s. 196.795, Stats., pursuant to its authority to intervene under s. 196.795 (10), Stats.;

PSC 6.03(23) (23) Providing assistance, monitoring and advocacy in protecting small business interests under s. 196.795, Stats., in any action or proceedings before the commission, pursuant to s. 196.795 (10m), Stats.;

PSC 6.03(24) (24) Conducting any other litigation arising out of the performance of the commission’s regulatory duties with respect to the implementation and enforcement of s. 196.795, Stats.;

PSC 6.03(25) (25) Ascertaining and collecting payment of the commission’s holding company regulation costs under s. 196.84, Stats.;

PSC 6.03(26) (26) Determining future investment terms, limitations or conditions on holding companies formed prior to November 28, 1985, pursuant to s. 196.795 (11) (b), Stats.;

PSC 6.03(27) (27) All other costs and expenses reasonably required in order for the commission to implement and enforce s. 196.795, Stats.

PSC 6.03 History History: Cr. Register, November, 1986, No. 371, eff. 12-1-86; correction in (13) made under s. 13.93 (2m) (b) 7., Stats., Register April 2007 No. 616.

PSC 6.04 PSC 6.04 Entities subject to assessment. Direct or remainder assessments for holding company regulation costs shall be made against:

PSC 6.04(1) (1) Holding companies;

PSC 6.04(2) (2) Nonutility affiliates;

PSC 6.04(3) (3) Public utilities prior to their becoming public utility affiliates, in circumstances where there does not exist a holding company or a nonutility affiliate against which to assess the commission’s holding company regulation costs. Examples of such situations include a person who has applied for but has not yet been granted a certificate of approval to form a holding company; a person who has applied for and has been denied a certificate of approval to form a holding company; and a holding company or nonutility affiliate which has insufficient resources with which to pay the commission’s holding company regulation costs. In the event a public utility pays these holding company regulation costs, said costs are not to be recouped by the utility through the rates which it charges consumers.

PSC 6.04(4) (4) Except as provided in sub. (3), assessments for the commission’s holding company regulation costs may not be made directly or indirectly against any public utility affiliate.