PUBLIC SERVICE COMMISSION OF WISCONSIN
Proposed Revisions for Wisconsin Administrative Code Chapter PSC 113, for Individual Electric Metering | 1-AC-257 |
The statement of scope for this rule, SS 031-23, was approved by the Governor on May 18, 2023, published in Register No. 809A4 on May 22, 2023, and approved by the Commission on July 20, 2023. This rule was approved by the Governor on XX XX, 2025. ORDER ADOPTING PROPOSED RULES
This is an Order of the Public Service Commission of Wisconsin proposing to repeal PSC 113.0803 (4) (c); amend PSC 113.0803 (1), (3), (4) (intro.); renumber and amend PSC 113.0803(5); create PSC 113.0803 (6), relating to service rules for electrical utilities.
ANALYSIS PREPARED BY
THE PUBLIC SERVICE OF WISCONSIN
A. Text of Rule
The proposed rule text is provided in Appendix A.
B. Statute Interpreted
This rule interprets Wisconsin Stat. § 196.16. C. Statutory Authority and Explanation of Authority
Section 227.11 authorizes agencies to promulgate administrative rules. Section 196.02(1) authorizes the Commission to do all things necessary and convenient to its jurisdiction. Section 196.02(3) grants the Commission specific authority to promulgate rules. Section 196.03(1) requires public utilities to provide reasonably adequate service and facilities. Section 196.16(2) requires the Commission to establish reasonable rules, regulations, and specifications and standards to secure the accuracy of all meters and appliances for measurement of public utility service. Section 196.37(2) authorizes the Commission to exercise control over the service rules that a public utility has with its consumers and requires the Commission to make a just and reasonable order if the Commission finds that the service is unjust, insufficient, or unlawful.
D. Related Statutes or Rules
As noted in B., this rule interprets Wisconsin Stat. § 196.16. Additionally, Wis. Stat. § 196.37(2) requires the Commission to exercise control over the service rules that a public utility has with its consumers. Wisconsin Admin. Code. ch. PSC 113 provides the service rules for electrical utilities. Wisconsin Admin. Code § PSC 113.01 notes that enforcement of the service rules is prescribed in Wis. Stat. §196.66. E. Plain Language Analysis
The individual metering waiver rules were originally promulgated in 1980. Individual electric meter waiver rules were initially promulgated in response to the requirement under the Public Utility Regulatory Policies Act of 1978 (PURPA) for states to address master-metering standards to support the goals of that act which included the conservation of energy supplied by electric utilities, optimization of the efficiency of the use of facilities and resources by electric utilities, and equitable rates for electric customers. The existing rule, Wis. Admin. Code § PSC 113.0803, last revised in 2002, generally requires that each dwelling in a non-transient multi-dwelling unit residential building and mobile home park, and each tenant space in a commercial building, constructed or renovated after March 1, 1980, must have its electric service individually metered. There are existing exceptions to this requirement identified in the code for mobile home parks and transient multi-dwelling buildings such as hotels, motels, campgrounds, hospitals, community-based residential facilities, residential care apartment complexes, nursing homes, college dormitories, fraternities, and sororities. The individual metering requirements in Wis. Admin. Code § PSC 113.0803 are generally intended to promote energy conservation, ensure that each customer is billed for their own energy consumption only, and ensure that the utility is able to disconnect the electric service to an individual unit without affecting the service of other units at a property. In addition to the existing exceptions, the existing rule authorizes the Commission to grant waivers of the requirement in specified circumstances, including where residential tenants have minimal usage under their control and when electric equipment under tenant control is substantially more efficient than applicable codes. In recent years, the Commission has received an increasing number of requests for waivers of this rule from both utilities and individual property owners who would be affected by the metering requirements. The proposed rulemaking would update the existing provisions of Wis. Admin. Code § PSC 113.0803 to address the emerging considerations raised through recent waiver requests and support simplicity and clarity in future applications of the rule. Specific proposed updates include revising existing criteria for granting a waiver of individual metering requirements to provide clearer and up-to-date guidance on appliable standards, establishing new criteria defining when individual metering would not be required, and integrating consumer protection requirements for projects that do not require individual unit metering. F. Summary of, and Comparison with, Existing or Proposed Federal Statutes and Regulations
This rule was originally created in response to the Public Utility Regulatory Policies Act of 1978 (PURPA), which was implemented to encourage the following:
1) The conservation of electric energy.
2) Increased efficiency in the use of facilities and resources by electric utilities.
3) Equitable retail rates for electric consumers.
4) Expeditious development of hydroelectric potential at existing small dams.
5) Conservation of natural gas while ensuring that rates to natural gas consumers are equitable.
PURPA states in Section 113(b)(1) that to the extent determined appropriate under section 115(d), master metering of electric service in the case of new buildings shall be prohibited or restricted to the extent necessary to carry out the purposes of this title."
PURPA Section. 115(d) states that separate metering shall be determined appropriate for any new building for purposes of Section 113(b)(1) if: 1) there is more than one unit in such building 2) the occupant of such unit has control over a portion of the electric energy used in such unit, and 3) with respect to such portion of electric energy used in such unit, the long-run benefits to the electric consumers in such building exceed the costs of purchasing and installing separate meters in such building.
G. Comparison with Similar Rules in Adjacent States
Illinois and Iowa have similar rules to Wisconsin, including listing of exceptions to individual electric meter requirements. Iowa conducted a rulemaking from 2016 – 2018 which included analysis on how to assess whether costs of individual meters exceed the long-term benefits. Michigan and Minnesota do not require individual electric meters in multifamily residential buildings through state rules, although in some cases similar requirements are established via other platforms such as utility tariffs. Minnesota recently enacted new rules that provide detailed regulation of landlord actions in multi-metered buildings by the Minnesota Public Utility Commission.
H. Summary of Factual Data and Analytical Methodologies Used and How Any Related Findings Support the Regulatory Approach Chosen
The Commission reviewed the 21 dockets since 2017 applying for permanent waivers of the individual electric meter rule for multi-dwelling unit residential buildings to consider information provided by building developers or owners, utilities, and organizations on the costs associated with using either single or individual electric meters in each building. The Commission also gathered information from the Department of Administration’s Division of Energy, Housing and Community Resources (DOA DEHCR) as well as the Wisconsin Housing and Economic Development Authority (WHEDA). Those staff were able to provide information that was used in evaluating potential housing impacts and the impacts to tenants if they did not have individual electric meters. To assist with finding information that could be used by Commission staff in this Housing Analysis, WHEDA conducted a survey of building developers to gather information on the existing rules, including the interest or ability to obtain a waiver, as well as potential cost impacts to residential multifamily housing. That survey had 12 respondents from areas of the state that are served by large investor-owned utilities, although not all respondents answered all survey questions. Commission staff also discussed potential housing impacts from the current rule and proposed changes with faculty at the University of Wisconsin.
The information gathered was not sufficient to support clear quantitative analysis of average housing and electric costs per unit of a multi-family building, in part due to a missing or partial responses on cost-related questions in the developer survey, and substantial differences between the buildings that have sought waivers from the rule, such as building size, prior use if any, and potential use of renewable energy. Information from the public utilities regarding standard meter costs and DEHCR was used to evaluate potential impacts to low-income residents, and found that there was not anticipated to be a substantial negative financial impact as residents are able to use energy and heating assistance.
I. Analysis and Supporting Documents Used to Determine the Effect on Small Business or in Preparation of an Economic Impact Report
The Commission’s fiscal estimate and economic impact analysis determined that the proposed rules will not have an economic effect on small businesses and are anticipated to result in minimal financial impacts to the State’s economy. Increased rule clarity and modified provisions may help reduce construction and energy-related costs for building owners and tenants associated with the increased deployment of renewable energy and energy efficient technologies. Revisions may also reduce the number of Commission staff hours reviewing and analyzing applications for waivers of this rule. Reducing the amount of review time may result in lower assessments for electric utilities involved, which may be passed on as savings to ratepayers. The Commission sought input from all Wisconsin electric utilities, Wisconsin Utilities Association (WUA), and owners of non-transient multi-dwelling residential buildings.
J. Effect on Small Business (initial regulatory flexibility analysis)
