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Please see http://docs.legis.wisconsin.gov for the production version.
This bill makes the following changes regarding the Chippewa and Flambeau Improvement Company:
1. Allows tolls to be levied and used to pay for acquisition and improvement of the companys reservoir system. Current law prohibits levying and using tolls for those purposes and prohibits tolls from exceeding the reasonable costs of operation and maintenance, including rent paid for leased properties, and a net annual return of 6 percent on capital invested in the company, including the par value of negotiable bonds issued by the company.
2. Allows tolls to be levied to recover the costs of taxes and depreciation and to provide a reasonable allowance for working capital.
3. Makes a water power operator that operates for at least two months of a six-month toll period subject to tolls for the entire six-month toll period. Under current law, such a water power operator is not subject to tolls for the entire six-month toll period.
4. Eliminates the restriction under current law that restricts negotiable interest-bearing bonds issued by the company from funding no more than half of the cost of acquiring dams, reservoirs, and rights.
5. Eliminates the prohibition under current law against the company from paying dividends to its stockholders while any of its bonds are outstanding, and also eliminates the current law requirement that if any company bonds are outstanding, subject to PSC approval, the earnings of the capital stock must be invested in a sinking fund to retire the outstanding bonds.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
AB254,1
1Section 1. 182.71 (1) (a) of the statutes is renumbered 182.71 (1) (ar).
AB254,22Section 2. 182.71 (1) (ag) of the statutes is created to read:
AB254,2,43182.71 (1) (ag) Capital invested means capital actually paid in and the par
4value of all negotiable bonds or other obligations issued by the company.
AB254,35Section 3. 182.71 (5) (b) of the statutes is amended to read:
AB254,3,46182.71 (5) (b) If the company operates water reservoirs under this section
7capable of storing and discharging 1.5 billion cubic feet of water that would not be
8naturally stored, it may charge uniform tolls to the owners, lessees or operators of
9every improved and operated water power located upon the Chippewa or Flambeau
10rivers or any of their tributaries below any of these reservoirs and benefited by the
11operation of these reservoirs. The sum of the tolls may not exceed the reasonable
12costs of operation and maintenance including taxes, depreciation, and rent paid for

1leased properties and, plus a net annual return on the cash capital actually paid in
2on the stock subscriptions to the company and on the par value of all negotiable
3bonds issued by the company capital invested and a reasonable allowance for
4working capital. The commission shall determine the net annual return.
AB254,45Section 4. 182.71 (5) (c) of the statutes is amended to read:
AB254,3,146182.71 (5) (c) The commission shall fix the tolls semiannually in proportion to
7the benefits received from the reservoir system by each improved and operated
8water power. A water power liable to tolls and operated 2 months or more during a
96-month toll period shall not be subject to tolls for the entire period. A water power
10operating for less than 2 months during a 6-month toll period shall not be subject to
11a toll. The company shall employ hydraulic engineers, selected by the commission,
12to assist the company and the commission in determining the tolls to be charged.
13The expense of employing the engineers shall be a part of the cost of maintenance
14and operation of the works.
AB254,515Section 5. 182.71 (5) (f) of the statutes is amended to read:
AB254,3,2016182.71 (5) (f) No tolls shall be levied or used to pay for any part of the original
17acquisition or improvement of the reservoir system. The tolls shall be a lien on the
18water power, dam, franchises and flowage rights of the person or corporation
19charged with the tolls. The company may sue to enforce the lien or for the sale of
20the encumbered property.
AB254,621Section 6. 182.71 (6) (intro.) of the statutes is amended to read:
AB254,3,2422182.71 (6) (intro.) On or before June 15 and December 15 of each year, the
23company shall provide the commission with a statement showing all of the
24following:
AB254,7
1Section 7. 182.71 (6) (a) of the statutes is amended to read:
AB254,4,42182.71 (6) (a) All expenditures made or necessary to be made for the 6-month
3period preceding the next July 1 or January 1 for maintenance and, operation, and
4depreciation of the reservoir system.
AB254,85Section 8. 182.71 (6) (f) of the statutes is amended to read:
AB254,4,116182.71 (6) (f) A recommendation of the amount of tolls necessary to pay the
7cost of maintenance and, operation and, taxes and depreciation, a net return of 6
8percent per year on the capital invested, including the par value of the outstanding
9negotiable bonds and a reasonable allowance for working capital, together with a
10recommendation as to the apportionment of the tolls against the owners or
11operators of improved powers under sub. (5); and.
AB254,912Section 9. 182.71 (7) (c) of the statutes is amended to read:
AB254,4,2013182.71 (7) (c) The company may, after certification from the commission
14according to the procedures under ss. 201.03 to 201.04, issue capital stock or
15negotiable bonds. The money received by the company upon account of capital stock
16or sale of its negotiable bonds shall be used to pay the original cost of purchase,
17construction, or improvement of the reservoir system. All tolls collected under sub.
18(5) shall be applied only to the payment of cost of maintenance and operation of the
19system and payment of the net return on capital so that the capital stock and bonds
20of the corporation shall be maintained at par value at all times.
AB254,1021Section 10. 182.71 (7) (d) of the statutes is amended to read:
AB254,5,522182.71 (7) (d) Subject to approval of the commission, the company may issue
23negotiable interest-bearing bonds to provide funds to acquire dams, reservoirs, and
24rights under this section. The issue shall not exceed one-half of the total cost of the

1improvement. The company may secure payment by mortgage of its property. If
2any bonds are issued and outstanding, all earnings of the capital stock shall be
3invested subject to the approval of the commission as a sinking fund for the purpose
4of retiring outstanding bonds, and while any bonds are outstanding, no dividends
5shall be paid to the stockholders of record.
AB254,116Section 11. 182.71 (8) of the statutes is amended to read:
AB254,5,147182.71 (8) This state shall have the right at any time, whenever it may have
8the constitutional power, to take over to itself and become owner of all reservoirs
9and other works and property acquired by the Chippewa and Flambeau
10Improvement Company, under this section, by paying therefor the cash capital
11actually paid on the capital stock of total capital invested by the company
12theretofore lawfully issued and outstanding or the actual value of the physical
13properties so taken over and without any allowance for franchises or goodwill of the
14business, such actual value to be determined by the commission.
AB254,5,1515(end)
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