LRB-1106/1

KP:cdc

2021 - 2022 LEGISLATURE

2021 Assembly BILL 27

January 29, 2021 - Introduced by Representative Kuglitsch, cosponsored by Senator Bradley, by request of Public Service Commission of Wisconsin. Referred to Committee on Energy and Utilities.

AB27,1,7 An Act to repeal 196.209; to amend 30.025 (4) (c), 196.07 (1), 196.191 (3) (a) 2., 196.203 (4m) (a), 196.31 (1) (intro.), 196.49 (5g) (ar) 1m. d., 196.491 (2) (f), 196.491 (3) (a) 1., 196.491 (3) (a) 2m. a., 196.499 (1) (b), 196.499 (1) (f) and 196.85 (3); to repeal and recreate 196.31 (2m); and to create 196.026 (7m), 196.20 (9) and 196.315 of the statutes; relating to: making various changes to statutes administered by the Public Service Commission and requiring investor-owned energy utilities to fund a consumer advocate.

Analysis by the Legislative Reference Bureau

This bill provides for funding for a consumer advocate and makes various changes to statutes administered by the Public Service Commission.

Consumer advocate funding. The bill requires the PSC to require investor-owned electric and natural gas public utilities (energy utilities) to provide funding to a “consumer advocate,” which is defined as the Citizens Utility Board that was created by the legislature in 1979 and subsequently dissolved and reorganized as a nonstock, nonprofit corporation. All actions of the consumer advocate that are funded under the bill must be directed toward a duty to represent and protect the interests of residential, small commercial, and small industrial energy customers of the state. The bill requires the consumer advocate to annually file with the PSC a budget, which the PSC must approve if it is consistent with the foregoing duty and covers reasonable annual costs, including salaries, benefits, overhead expenses, an operating reserve, and any other costs directly or indirectly related to representing and protecting the interests of the foregoing customers. However, the bill allows the PSC to approve the budget with conditions and modifications that the PSC determines are necessary. If the PSC fails to take final action within 60 days after a budget is filed, the PSC is considered to have approved the budget.

The bill limits the total annual funding for the consumer advocate to a maximum of $900,000. Each energy utility's share of that total is based on an individual energy utility's proportionate share of residential, small commercial, and small industrial customer meters in the state, which each energy utility must annually report to the PSC. The bill requires the PSC to ensure in rate-making orders that energy utilities recover the funding from their customers. The PSC must apply escrow accounting treatment to energy utility expenditures for the funding.