Chapter 196

196.025(6)(b)1. 1. Except as provided in subd. 2., a communications provider shall collect from each subscriber a monthly fee of $0.75 on each communications service connection with an assigned telephone number, including a communication service provided via a voice over Internet protocol connection. If a communications provider provides multiple communications service connections to a subscriber, the fee required to be collected by the communications provider under this subdivision shall be a separate fee on each of the first 10 connections and one additional fee for each 10 additional connections per billed account. A communications provider may list the fee separately from other charges on a subscriber’s bill, and if a communications provider does so, the communications provider shall identify the fee as “911 fee,” or, if the communications provider combines the fee with a charge imposed under s. 256.35 (3), the communications provider shall identify the combined fee and charge as “charge for funding countywide 911 systems plus 911 fee.” Any partial payment of a fee by a subscriber shall first be applied to any amount the subscriber owes the communications provider for communications service.

196.025(6)(b)2. 2. A communications provider that offers a prepaid wireless telecommunications plan, or a retailer that offers such a plan on behalf of a communications provider, shall collect from each subscriber or purchaser a fee equal to $0.38 on each retail transaction for such a plan that occurs in this state. A communications provider or retailer may state the amount of the fee separately on a bill for the retail transaction, and if a communications provider or retailer does so, the communications provider or retailer shall identify the fee as “911 fee.”

196.025(6)(c) (c)

196.025(6)(c)1. 1. Except as provided in subd. 2., no later than the first calendar month following the calendar month in which a communications provider or retailer receives from a subscriber a fee imposed under par. (b), the communications provider or retailer shall remit the fee to the commission.

196.025(6)(c)2. 2. The commission may contract with the department for the collection of fees imposed under par. (b). If the commission and department enter into such a contract, no later than the first calendar month following the calendar month in which a communications provider or retailer receives from a subscriber a fee imposed under par. (b), the communications provider or retailer shall remit the fee to the department.

196.025(6)(c)3. 3. The commission and department shall deposit all fees remitted under subds. 1. and 2. into the 911 fund.

196.025(6)(cm) (cm) If the commission contracts with the department to collect fees as provided under par. (c) 2., all of the following apply:

196.025(6)(cm)1. 1. The department may require communications providers and retailers to register with the department, file returns with the department, and pay the fees required under this section to the department in the manner and form prescribed by the department, subject to par. (c) 2.

196.025(6)(cm)2. 2.

196.025(6)(cm)2.a. a. The department may determine compliance with this section using a field or office audit. Sections 77.59 (1) to (5m), (8), and (8m) and 77.62, as they apply to taxes under subch. III of ch. 77, apply to fees required under this section.

196.025(6)(cm)2.b. b. If, as a result of an audit under subd. 2. a., the department provides a notice to a communications provider or retailer about a fee amount that is due, a refund that is due to the communications provider or retailer, or a refund claim denial, and the communications provider or retailer disagrees with the notice, the communications provider or retailer may petition the department for a redetermination. The petition for redetermination shall be in writing and signed and shall state the facts and reasons for disagreeing with the amount due, refund due, or refund claim denial and include supporting documents. A communications provider or retailer shall mail or transmit by fax machine the petition within 60 days after the department mails the notice of a fee due, a refund, or a refund claim denial. The petition shall be submitted to the address or fax number provided in the notice. A petition that is mailed is considered timely if it is postmarked on or before the date provided in the notice and is received by the department within 5 days of that date.

196.025(6)(cm)2.c. c. Within 6 months of the receipt by the department of a petition for redetermination under subd. 2. b., the department shall notify the communications provider or retailer of its redetermination. The redetermination is final 30 days after mailing unless, within that 30-day period, the communications provider or retailer files an objection to the redetermination with the commission as provided under subd. 2. d.

196.025(6)(cm)2.d. d. Within 30 days after a redetermination under subd. 2. c. is mailed, the communications provider or retailer may file an objection to that redetermination with the commission. The objection shall set out in detail the grounds upon which the communications provider or retailer finds the redetermination to be erroneous. The commission, after providing no less than 10 days’ notice to the communications provider or retailer, shall hold a hearing on the objection. After the hearing, the commission shall mail its decision on the objection, including any amount to be paid, by registered mail. If the amount to be paid is not paid within 10 days after the decision has been mailed, the commission or department may bring an action to collect any amount that is due under this section.

196.025(6)(cm)3. 3. A decision of the commission under subd. 2. d. may be reviewed under s. 227.52.

196.025(6)(d) (d) The commission may promulgate rules for administering this subsection.

196.025(6)(e) (e) The commission or the department may bring an action to collect any amount that is required to be remitted under par. (c).

196.025(7) (7) State energy office.

196.025(7)(a) (a) The commission shall do all of the following:

196.025(7)(a)1. 1. In cooperation with the other state agencies, collect, analyze, interpret, and maintain the comprehensive data needed for effective state agency energy planning and effective review of those plans by the governor and the legislature.

196.025(7)(a)2. 2. Administer federal energy grants, when so designated by the governor pursuant to s. 16.54.

196.025(7)(a)3. 3. Prepare and maintain contingency plans for responding to critical energy shortages so that when the shortages occur they can be dealt with quickly and effectively.

196.025(7)(b) (b) The commission may provide technical assistance to units of government other than the state to assist in the planning and implementation of energy efficiency and renewable resources and may charge for those services. The commission may request technical and staff assistance from other state agencies in providing technical assistance to those units of government.

196.025(7)(c) (c) The commission may require a public utility to provide energy billing and use data regarding public schools, if the commission determines that the data is necessary to provide technical assistance in the planning and implementation of energy efficiency and renewable resources in public schools, including those with the highest energy costs.

196.025 Cross-reference Cross-reference: See also ch. PSC 172, Wis. adm. code.

196.025 History History: 1993 a. 414; 1999 a. 9; 2001 a. 38; 2003 a. 89; 2005 a. 141; 2009 a. 28; 2017 a. 17; 2017 a. 136 ss. 1, 36 to 38; 2023 a. 19.

196.025 Note NOTE: 1993 Wis. Act 414, which creates this section, contains extensive explanatory notes.

196.025 Cross-reference Cross-reference: See also PSC, Wis. adm. code.

196.026 196.026 Settlements.

196.026(1) (1) All parties to dockets before the commission are encouraged to enter into settlements when possible.

196.026(2) (2) In this section, “docket” means an investigation, proceeding, or other matter opened by a vote of the commission, except for rule making.

196.026(3) (3) Parties to a docket may agree upon some or all of the facts. The agreement shall be evidenced by a written stipulation filed with the commission or entered upon the record. The stipulation shall be regarded and used as evidence in the docket.

196.026(4) (4) Parties to a docket may agree upon a resolution of some or all of the issues. When a written settlement agreement is proposed by some of the parties, those parties shall submit to the commission the settlement agreement and any documents, testimony, or exhibits, including record citations if there is a record, and any other matters those parties consider relevant to the proposed settlement and serve a copy of the settlement agreement upon all parties to the docket.

196.026(5) (5) If a proposed settlement agreement is not supported by all parties, the settling parties shall convene at least one conference with notice and opportunity to participate provided to all parties for the purpose of discussing the proposed settlement agreement. A nonsettling party may waive its right to the conference provided in this subsection.

196.026(6) (6) Within 30 days of service of a settlement agreement under sub. (4), each party to the docket shall respond in writing by filing and serving on all parties the party’s agreement, objection, or nonobjection to the settlement agreement. Failure to respond in writing within 30 days of service, unless a different time is set by the commission for good cause, shall constitute nonobjection to the settlement agreement. A party objecting to a settlement agreement shall state all objections with particularity and shall specify how the party would be adversely affected by each provision of the settlement agreement to which the party objects.

196.026(7) (7) The commission may approve a settlement agreement under sub. (4) if all of following conditions are met:

196.026(7)(a) (a) All of the following have been given a reasonable opportunity to present evidence and arguments in opposition to the settlement agreement:

196.026(7)(a)1. 1. Each party that has filed an objection or nonobjection to the settlement agreement under sub. (6).

196.026(7)(a)2. 2. Each party whose failure to respond in writing constitutes a nonobjection to the settlement agreement under sub. (6).

196.026(7)(b) (b) The commission finds that the public interest is adequately represented by the parties who entered into the settlement agreement.

196.026(7)(c) (c) The commission finds that the settlement agreement represents a fair and reasonable resolution to the docket, is supported by substantial evidence on the record as a whole, and complies with applicable law, including that any rates resulting from the settlement agreement are just and reasonable.

196.026(7m) (7m) If a public utility’s fuel cost plan is contained in a settlement agreement, the commission may approve the fuel cost plan for the first year of a 2-year settlement agreement without holding a hearing.

196.026(8) (8) The commission may approve a settlement agreement under sub. (4) in whole or in part and with conditions deemed necessary by the commission. If the settlement agreement does not resolve all of the issues in the docket, the commission shall decide the remaining issues in accordance with applicable law and procedure.

196.026 History History: 2017 a. 136; 2021 a. 24.

196.027 196.027 Environmental trust financing.

196.027(1) (1) Definitions. In this section:

196.027(1)(a) (a) “Ancillary agreement” means any bond insurance policy or other financial arrangement entered into in connection with the issuance of environmental trust bonds.

196.027(1)(b) (b) “Assignee” means any person to which an interest in environmental control property is sold, assigned, transferred, or conveyed and any successor to such a person.

196.027(1)(c) (c) “Energy utility” means a public utility engaged in the transmission, delivery, or furnishing of natural gas by means of pipes or mains or of heat, light, or power.

196.027(1)(d) (d) “Environmental control activity” means any of the following:

196.027(1)(d)1. 1. The construction, installation, or otherwise putting into place of environmental control equipment in connection with an energy utility plant that, before March 30, 2004, has been used to provide service to customers.

196.027(1)(d)2. 2. The retiring of any existing plant, facility, or other property to reduce, control, or eliminate environmental pollution in accordance with federal or state law.

196.027(1)(e) (e) “Environmental control charge” means a charge paid by customers of an energy utility or its successors for the energy utility to recover environmental control costs and financing costs.

196.027(1)(f) (f) “Environmental control cost” means capital cost, including capitalized cost relating to regulatory assets, incurred or expected to be incurred by an energy utility in undertaking an environmental control activity and, with respect to an environmental control activity described in par. (d) 2., includes the unrecovered value of property that is retired, including any demolition or similar cost that exceeds the salvage value of the property. “Environmental control cost” does not include any monetary penalty, fine, or forfeiture assessed against an energy utility by a government agency or court under a federal or state environmental statute, rule, or regulation.

196.027(1)(g) (g) “Environmental control equipment” means any device, equipment, structure, process, facility, or technology, owned or controlled by an energy utility, that is designed for the primary purpose of preventing, reducing, or remediating environmental pollution.

196.027(1)(h) (h) “Environmental control property” means all of the following:

196.027(1)(h)1. 1. The right specified in a financing order to impose, collect, or receive environmental control charges, or to obtain adjustments to such charges as provided in this section, and any interest in such right.

196.027(1)(h)2. 2. All revenues and proceeds arising from the right and interests specified in subd. 1.

196.027(1)(i) (i) “Environmental pollution” means the contamination or rendering unclean or impure of the air, land, or waters of the state, or the making of the same injurious to public health, harmful for commercial or recreational use, or deleterious to animal or plant life.

196.027(1)(j) (j) “Environmental trust bonds” means bonds, debentures, notes, certificates of participation, certificates of beneficial interest, certificates of ownership, or other evidences of indebtedness that are issued by an energy utility or an assignee, the proceeds of which are used directly or indirectly to recover, finance, or refinance environmental control costs and financing costs, and that are secured by or payable from environmental control property.

196.027(1)(k) (k) “Financing cost” means any of the following:

196.027(1)(k)1. 1. Interest and redemption premiums, that are payable on environmental trust bonds.

196.027(1)(k)2. 2. A payment required under an ancillary agreement, including any amount required to fund a reserve account.

196.027(1)(k)3. 3. The cost of retiring or refunding an energy utility’s existing debt and equity securities in connection with the issuance of environmental trust bonds, but only to the extent the securities were issued for the purpose of financing environmental control costs.

196.027(1)(k)4. 4. Any other reasonable cost related to issuing and servicing environmental trust bonds, including servicing fees, trustee fees, legal fees, administrative fees, placement fees, capitalized interest, and rating agency fees.

196.027(1)(k)5. 5. Any taxes and license fees imposed on the revenues generated from the collection of environmental control charges.

196.027(1)(L) (L) “Financing order” means an order under sub. (2) that allows for the issuance of environmental trust bonds, the collection of environmental control charges, and the creation of environmental control property.

196.027(2) (2) Financing orders.

196.027(2)(a) (a) Applications. An energy utility may apply to the commission for a financing order. In addition to any other information required by the commission, an energy utility shall do all of the following in an application:

196.027(2)(a)1. 1. Describe the environmental control activities that the energy utility proposes to undertake, indicate whether the energy utility’s electric, natural gas, or steam service is associated with the activities, and describe the reasons for undertaking the activities.

196.027(2)(a)2. 2. Estimate the environmental control costs of the activities described under subd. 1.

196.027(2)(a)3. 3. Indicate whether the energy utility proposes to finance all or a portion of the costs estimated under subd. 2. with environmental trust bonds. If the energy utility proposes to finance a portion of the costs, the energy utility shall identify that portion in the application.

196.027(2)(a)4. 4. Estimate the financing costs of the environmental trust bonds proposed under subd. 3.

196.027(2)(a)5. 5. Estimate the environmental control charges necessary to recover the environmental control costs and financing costs estimated in the application and indicate whether the environmental control charges are proposed for the energy utility’s electric, natural gas, or steam service.

196.027(2)(a)6. 6. Estimate any cost savings to customers resulting from financing environmental control costs with environmental trust bonds as opposed to alternative financing methods.

196.027(2)(b) (b) Commission powers and duties.

196.027(2)(b)1. 1. No later than 120 days after receiving an application under par. (a), the commission shall, after a hearing, issue a financing order or an order rejecting the application. The commission may issue a financing order if the commission finds all of the following:

196.027(2)(b)1.a. a. That the order will result in lower overall costs to customers than would alternative methods of financing environmental control activities.

196.027(2)(b)1.b. b. That the proposed structuring and expected pricing of the environmental trust bonds will result in the lowest environmental control charges that are consistent with market conditions and the terms of the financing order.

196.027(2)(b)1.c. c. That the financing order is otherwise consistent with the public interest, and is prudent, reasonable, and appropriate.

196.027(2)(b)2. 2. In a financing order issued to an energy utility, the commission shall do all of the following:

196.027(2)(b)2.a. a. Except as provided in subds. 2. c. and 4., specify the amount of environmental control costs and financing costs that may be recovered through environmental control charges and the period over which such costs may be recovered.

196.027(2)(b)2.b. b. For the period specified in subd. 2. a. require that, as long as any customer obtains distribution service from the energy utility or its successors, the customer shall pay environmental control charges to the energy utility or its assignees regardless of whether the customer obtains other service from a different energy utility or other energy supplier.

196.027(2)(b)2.c. c. Include a formula-based mechanism for making any adjustments in the environmental control charges that customers are required to pay under the order and making any adjustments that are necessary to correct for any overcollection or undercollection of the charges or to otherwise ensure the energy utility’s or assignee’s timely recovery of environmental control costs and financing costs.

196.027(2)(b)2.d. d. Specify the environmental control property that is created and that may be used to pay or secure environmental trust bonds.

196.027(2)(b)2.e. e. If considered appropriate by the commission, include a provision allowing for the retirement of environmental trust bonds before their termination dates.

196.027(2)(b)2.f. f. Include any other conditions that the commission considers appropriate and that are not otherwise inconsistent with this section.

196.027(2)(b)3. 3. A financing order issued to an energy utility may provide that the energy utility’s acquisition of environmental control property specified in subd. 2. d. is conditioned upon, and shall be simultaneous with, the sale of the environmental control property to an assignee and the pledge of the environmental control property to secure environmental trust bonds.

196.027(2)(b)4. 4.

196.027(2)(b)4.a. a. If the commission issues a financing order, the commission shall apply, at least annually, the formula-based mechanism specified in subd. 2. c. and, based on estimates of demand and other mathematical factors, make the adjustments described in subd. 2. c. The commission shall make the adjustments within 45 days of the anniversary date on which environmental trust bonds are issued and after expiration of the comment period described in subd. 4. b.