1 | 1 | | LRB-4032/1 |
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2 | 2 | | EHS:amn |
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3 | 3 | | 2023 - 2024 LEGISLATURE |
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4 | 4 | | 2023 ASSEMBLY BILL 470 |
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5 | 5 | | October 5, 2023 - Introduced by Representatives PETERSEN, MURSAU, O'CONNOR, |
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6 | 6 | | PLUMER, STEFFEN, SWEARINGEN and WICHGERS, cosponsored by Senators |
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7 | 7 | | BRADLEY, MARKLEIN and WANGGAARD. Referred to Committee on Energy and |
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8 | 8 | | Utilities. |
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9 | 9 | | ***AUTHORS SUBJECT TO CHANGE*** |
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10 | 10 | | AN ACT to create 196.485 (1) (cr), 196.485 (1) (ef) and 196.485 (3g) of the statutes; |
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11 | 11 | | relating to: an incumbent transmission facility owner's right to construct, |
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12 | 12 | | own, and maintain certain transmission facilities and Public Service |
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13 | 13 | | Commission procedures if the transmission facility is a regionally cost-shared |
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14 | 14 | | transmission line. |
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15 | 15 | | Analysis by the Legislative Reference Bureau |
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16 | 16 | | This bill grants to an incumbent transmission facility owner the right to |
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17 | 17 | | construct, own, and maintain a transmission facility that has been approved for |
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18 | 18 | | construction in the Midcontinent Independent System Operator 's (MISO) |
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19 | 19 | | transmission plan and that connects to transmission facilities owned by that |
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20 | 20 | | incumbent transmission facility owner. Under the bill, an “incumbent transmission |
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21 | 21 | | facility owner” is a transmission company or a cooperative or public utility that owns |
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22 | 22 | | a transmission facility and provides transmission service in this state. Under |
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23 | 23 | | current law, MISO is an organization that is subject to the jurisdiction of the Federal |
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24 | 24 | | Energy Regulatory Commission and that coordinates and controls electric |
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25 | 25 | | transmission in a region of the country that includes this state. The bill provides that |
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26 | 26 | | the right to construct, own, and maintain a transmission facility that connects to |
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27 | 27 | | transmission facilities owned by two or more incumbent transmission facility owners |
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28 | 28 | | belongs individually and proportionally to each incumbent transmission facility |
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29 | 29 | | owner, unless otherwise agreed upon in writing. |
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30 | 30 | | The bill also defines “regionally cost-shared transmission line” to mean a |
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31 | 31 | | high-voltage transmission line that is eligible for regional cost sharing and is not |
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36 | 36 | | 5 - 2 -2023 - 2024 Legislature LRB-4032/1 |
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37 | 37 | | EHS:amn |
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38 | 38 | | ASSEMBLY BILL 470 |
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39 | 39 | | subject to a right of first refusal in accordance with the MISO tariff. Under the bill, |
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40 | 40 | | if under MISO's transmission plan a regionally cost-shared transmission line has |
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41 | 41 | | been approved for construction and connection to facilities owned by an incumbent |
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42 | 42 | | transmission facility owner, the incumbent transmission facility owner must give |
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43 | 43 | | the Public Service Commission written notice regarding the owner's intent to |
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44 | 44 | | construct, own, and maintain the line no later than 90 days after approval of the |
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45 | 45 | | transmission plan. If the owner indicates that it does not intent to construct the line, |
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46 | 46 | | the bill requires it to fully explain that decision in the notice to PSC. In that case, |
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47 | 47 | | the bill allows PSC to determine whether the incumbent transmission facility owner |
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48 | 48 | | or another entity must construct the line, taking into consideration issues such as |
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49 | 49 | | cost, efficiency, and reliability. |
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50 | 50 | | The bill requires an incumbent transmission facility owner with the right to |
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51 | 51 | | construct a MISO-approved regionally cost-shared transmission line to include in |
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52 | 52 | | any application for a certificate of public convenience and necessity an estimate of |
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53 | 53 | | the cost of construction, along with documentation that the estimate is the result of |
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54 | 54 | | competitively bid engineering, procurement, and construction contracts. The bill |
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55 | 55 | | also requires such an incumbent transmission facility owner to provide to PSC until |
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56 | 56 | | construction is complete quarterly reports that include updated estimates of the |
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57 | 57 | | construction cost and an explanation of any changes from prior cost estimates. |
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58 | 58 | | The people of the state of Wisconsin, represented in senate and assembly, do |
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59 | 59 | | enact as follows: |
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60 | 60 | | SECTION 1. 196.485 (1) (cr) of the statutes is created to read: |
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61 | 61 | | 196.485 (1) (cr) “Incumbent transmission facility owner" means a transmission |
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62 | 62 | | company or transmission utility. |
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63 | 63 | | SECTION 2. 196.485 (1) (ef) of the statutes is created to read: |
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64 | 64 | | 196.485 (1) (ef) “Regionally cost-shared transmission line” means a |
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65 | 65 | | high-voltage transmission line that is eligible, in whole or in part, for regional cost |
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66 | 66 | | sharing and is not subject to a right of first refusal in accordance with the tariff of |
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67 | 67 | | the Midwest independent system operator. |
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68 | 68 | | SECTION 3. 196.485 (3g) of the statutes is created to read: |
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69 | 69 | | 196.485 (3g) INCUMBENT TRANSMISSION FACILITY OWNER RIGHTS. (a) Rights. |
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70 | 70 | | Subject to the approval of the commission under s. 196.491 (3), an incumbent |
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71 | 71 | | transmission facility owner has the right to construct, own, and maintain a |
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83 | 83 | | 12 - 3 -2023 - 2024 Legislature |
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84 | 84 | | LRB-4032/1 |
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85 | 85 | | EHS:amn |
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86 | 86 | | SECTION 3 |
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87 | 87 | | ASSEMBLY BILL 470 |
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88 | 88 | | transmission facility that has been approved for construction in the Midwest |
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89 | 89 | | independent system operator's transmission plan and that connects to transmission |
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90 | 90 | | facilities owned by that incumbent transmission facility owner. The right to |
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91 | 91 | | construct, own, and maintain a transmission facility that connects to transmission |
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92 | 92 | | facilities owned by 2 or more incumbent transmission facility owners belongs |
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93 | 93 | | individually and proportionally to each incumbent transmission facility owner, |
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94 | 94 | | unless otherwise agreed upon in writing. |
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95 | 95 | | (b) Commission procedure. 1. If, in the Midwest independent system operator's |
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96 | 96 | | transmission plan, a regionally cost-shared transmission line has been approved for |
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97 | 97 | | construction and connection to facilities owned by an incumbent transmission |
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98 | 98 | | facility owner, the incumbent transmission facility owner shall give written notice |
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99 | 99 | | to the commission regarding the owner's intent to construct, own, and maintain the |
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100 | 100 | | regionally cost-shared transmission line no later than 90 days after approval of the |
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101 | 101 | | transmission plan. |
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102 | 102 | | 2. If an incumbent transmission facility owner indicates in its notice to the |
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103 | 103 | | commission under subd. 1. that it does not intend to construct the regionally |
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104 | 104 | | cost-shared transmission line, it shall in the notice fully explain the basis for that |
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105 | 105 | | decision. In that case, the commission may determine whether the incumbent |
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106 | 106 | | transmission facility owner or another entity is required to construct the regionally |
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107 | 107 | | cost-shared transmission line, taking into consideration issues such as cost, |
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108 | 108 | | efficiency, reliability, and other factors identified in this chapter. |
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109 | 109 | | (c) Cost control and requirement of competition. With respect to a regionally |
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110 | 110 | | cost-shared transmission line approved by the Midwest independent system |
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111 | 111 | | operator, an incumbent transmission facility owner with the right to construct the |
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112 | 112 | | transmission line shall do all of the following: |
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137 | 137 | | 25 - 4 -2023 - 2024 Legislature LRB-4032/1 |
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138 | 138 | | EHS:amn |
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139 | 139 | | SECTION 3 ASSEMBLY BILL 470 |
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140 | 140 | | 1. In any application filed pursuant to s. 196.491 (3), provide to the commission |
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141 | 141 | | an estimate of the cost to construct the regionally cost-shared transmission line and |
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142 | 142 | | documentation showing that this cost is the result of competitively bid engineering, |
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143 | 143 | | procurement, and construction contracts. |
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144 | 144 | | 2. Until construction of the regionally cost-shared transmission line is |
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145 | 145 | | complete, provide to the commission a quarterly report that includes an updated |
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146 | 146 | | estimate of the cost to construct the regionally cost-shared transmission line and an |
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147 | 147 | | explanation of changes from prior cost estimates provided under this subdivision or |
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148 | 148 | | subd. 1. |
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149 | 149 | | (END) |
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