1 | 1 | | LRB-4699/1 |
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2 | 2 | | EHS:emw |
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3 | 3 | | 2023 - 2024 LEGISLATURE |
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4 | 4 | | 2023 ASSEMBLY BILL 676 |
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5 | 5 | | November 27, 2023 - Introduced by Representatives NEYLON, GUSTAFSON, TITTL, |
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6 | 6 | | BALDEH, GREEN, KRUG, MURPHY, O'CONNOR, PENTERMAN, RETTINGER, ROZAR, |
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7 | 7 | | SPIROS and TRANEL, cosponsored by Senators COWLES, STROEBEL, BALLWEG, |
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8 | 8 | | JACQUE and NASS. Referred to Committee on Energy and Utilities. |
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9 | 9 | | ***AUTHORS SUBJECT TO CHANGE*** |
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10 | 10 | | AN ACT to create 196.03 (7) and (8) of the statutes; relating to: notice to public |
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11 | 11 | | utility customers of potential and final rate changes. |
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12 | 12 | | Analysis by the Legislative Reference Bureau |
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13 | 13 | | Under current law, a public utility may not change the rates that it charges to |
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14 | 14 | | customers without first applying to the Public Service Commission for approval of |
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15 | 15 | | the change. |
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16 | 16 | | This bill requires a public utility that supplies gas or electricity to its customers |
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17 | 17 | | to provide notice to those customers with their utility bills if the utility submits a rate |
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18 | 18 | | change application to PSC or if the utility submits an amendment to such an |
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19 | 19 | | application that would change a proposed rate by 1 percent or more. If PSC approves |
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20 | 20 | | such a rate change, the bill also requires the public utility to provide notice of the rate |
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21 | 21 | | change to customers with their utility bills. The bill requires the public utility to |
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22 | 22 | | provide notice of a proposed or final rate change as an insert to a paper bill or in the |
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23 | 23 | | email by which a digital bill is sent. The bill requires a notice of a proposed or final |
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24 | 24 | | rate change to include a number of items, such as the impact of the rate change on |
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25 | 25 | | customers, represented as a percentage increase or decrease and as a dollar increase |
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26 | 26 | | or decrease for the average customer in each class of customers; the amount that a |
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27 | 27 | | rate increase will generate in revenue annually for the public utility; and a |
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28 | 28 | | comparison of current and proposed or new rates with average rates across the |
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29 | 29 | | Midwest, as calculated by PSC. The bill also requires a notice of a proposed rate |
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30 | 30 | | change to include information to facilitate consumer access to and public comments |
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31 | 31 | | on the rate case. |
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32 | 32 | | The bill requires the public utility to submit to PSC a copy of the notice and |
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33 | 33 | | requires PSC to include it as a record in the docket. However, the bill allows PSC to |
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36 | 36 | | EHS:emw |
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37 | 37 | | ASSEMBLY BILL 676 |
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38 | 38 | | require the public utility to provide a new notice if it determines the notice does not |
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39 | 39 | | meet the requirements under the bill or is not easily comprehensible by a typical |
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40 | 40 | | customer. The bill also requires the public utility to make the notice or a link to the |
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41 | 41 | | notice available on the home page of its website or on a web page used by customers |
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42 | 42 | | to view and pay bills online, or both, for at least 90 days beginning on the day the first |
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43 | 43 | | notice is provided to customers. |
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44 | 44 | | Under the bill, PSC may not open a public comment period or issue a final |
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45 | 45 | | decision on a proposed rate change until a copy of the required notice of an initial rate |
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46 | 46 | | change application is submitted to PSC and may not close a public comment period |
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47 | 47 | | or issue a final decision on a proposed rate change until a copy of the required notice |
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48 | 48 | | of an amendment to such an application is submitted to PSC. |
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49 | 49 | | The people of the state of Wisconsin, represented in senate and assembly, do |
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50 | 50 | | enact as follows: |
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51 | 51 | | SECTION 1. 196.03 (7) and (8) of the statutes are created to read: |
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52 | 52 | | 196.03 (7) All of the following apply when a public utility that supplies gas or |
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53 | 53 | | electricity to its customers submits to the commission an application to change rates |
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54 | 54 | | or an amendment to such an application that changes a proposed rate by 1 percent |
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55 | 55 | | or more: |
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56 | 56 | | (a) The public utility shall provide notice of the rate change application with |
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57 | 57 | | the first bill issued to each customer after the commission issues a notice opening a |
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58 | 58 | | docket on the application, and the public utility shall provide notice of an amendment |
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59 | 59 | | to such an application that changes a proposed rate by 1 percent or more with the first |
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60 | 60 | | bill issued to each customer after it submits this amendment to the commission. If |
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61 | 61 | | the customer receives a paper bill, the notice shall be included as an insert with the |
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62 | 62 | | bill on a separate sheet of paper. If the customer receives a digital bill by email, the |
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63 | 63 | | notice shall be included in that email. The notice shall include all of the following: |
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64 | 64 | | 1. The impact of the proposed rate change on customers, represented as a |
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65 | 65 | | percentage increase or decrease and as a dollar increase or decrease for the average |
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66 | 66 | | customer in each class of customers. |
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82 | 82 | | 16 - 3 -2023 - 2024 Legislature |
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83 | 83 | | LRB-4699/1 |
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84 | 84 | | EHS:emw |
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85 | 85 | | SECTION 1 |
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86 | 86 | | ASSEMBLY BILL 676 |
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87 | 87 | | 2. For a rate increase, the total amount that the public utility anticipates that |
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88 | 88 | | the rate increase will generate in revenue for the public utility annually. |
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89 | 89 | | 3. A comparison between the public utility's current rates, the proposed rates, |
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90 | 90 | | and the average rates charged to customers across all other midwestern states using |
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91 | 91 | | figures provided by the commission under sub. (8). The comparison shall include the |
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92 | 92 | | percentage difference between these average rates for the same or similar class of |
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93 | 93 | | customers. |
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94 | 94 | | 4. The proposed effective date of the rate change. |
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95 | 95 | | 5. A list of all decisions issued by the commission under s. 196.371 since the |
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96 | 96 | | public utility's previous rate case and a discussion of the effect of those decisions on |
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97 | 97 | | the proposed rate change. |
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98 | 98 | | 6. The docket number and information on how to view and access the records |
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99 | 99 | | from the docket. |
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100 | 100 | | 7. A brief synopsis of how to engage in any public comment periods at the |
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101 | 101 | | commission, including online and by mail. |
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102 | 102 | | 8. The dates of any commission hearings or prehearing conferences already |
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103 | 103 | | scheduled at the time of the notice and a description of how to learn of scheduling |
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104 | 104 | | changes or additions. |
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105 | 105 | | 9. A brief synopsis of the reasons for the rate change application or amendment. |
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106 | 106 | | 10. Other information deemed relevant by the public utility. |
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107 | 107 | | (am) If the commission issues a final decision approving a rate change under |
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108 | 108 | | par. (a) of 1 percent or more, the public utility must provide notice of the rate change |
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109 | 109 | | with a bill issued to each customer no later than 2 months after the commission |
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110 | 110 | | approves the rate change. If the customer receives a paper bill, the notice shall be |
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111 | 111 | | included as an insert with the bill on a separate sheet of paper. If the customer |
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136 | 136 | | 25 - 4 -2023 - 2024 Legislature LRB-4699/1 |
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137 | 137 | | EHS:emw |
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138 | 138 | | SECTION 1 ASSEMBLY BILL 676 |
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139 | 139 | | receives a digital bill by email, the notice shall be included in that email. The notice |
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140 | 140 | | shall include all of the following: |
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141 | 141 | | 1. The impact of the rate change on customers, represented as a percentage |
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142 | 142 | | increase or decrease and as a dollar increase or decrease for the average customer |
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143 | 143 | | in each class of customers. |
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144 | 144 | | 2. For a rate increase, the total amount that the public utility anticipates that |
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145 | 145 | | the rate increase will generate in revenue for the public utility annually. |
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146 | 146 | | 3. A comparison between the public utility's current rates, the new rates, and |
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147 | 147 | | the average rates charged to customers across all other midwestern states using |
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148 | 148 | | figures provided by the commission under sub. (8). The comparison shall include the |
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149 | 149 | | percentage difference between these average rates for the same or similar class of |
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150 | 150 | | customers. |
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151 | 151 | | 4. The effective date of the rate change. |
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152 | 152 | | (b) The public utility shall submit to the commission a copy of a notice under |
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153 | 153 | | par. (a) or (am) that has been provided to customers, and the commission shall |
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154 | 154 | | include this as a record in the docket. The commission may require the public utility |
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155 | 155 | | to provide a new notice under par. (a) or (am) if it determines that the notice provided |
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156 | 156 | | does not comply with this subsection or is not easily comprehensible by a typical |
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157 | 157 | | customer. |
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158 | 158 | | (c) The public utility shall make a notice under par. (a) or (am), or a link to that |
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159 | 159 | | notice, available on the home page of its website or on a web page used by customers |
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160 | 160 | | to view and pay bills online, or both, for a period of no less than 90 days beginning |
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161 | 161 | | on the day that notice is first provided to customers. |
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162 | 162 | | (d) 1. Notwithstanding any other deadlines that apply to a rate case proceeding, |
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163 | 163 | | if the public utility fails to submit to the commission a copy of a notice of an initial |
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188 | 188 | | 25 - 5 -2023 - 2024 Legislature |
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189 | 189 | | LRB-4699/1 |
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190 | 190 | | EHS:emw |
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191 | 191 | | SECTION 1 |
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192 | 192 | | ASSEMBLY BILL 676 |
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193 | 193 | | rate change application under par. (b), the commission may not open a public |
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194 | 194 | | comment period or issue a final decision on a proposed rate change until the notice |
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195 | 195 | | is provided to customers and a copy of the notice is submitted to the commission. |
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196 | 196 | | 2. Notwithstanding any other deadlines that apply to a rate case proceeding, |
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197 | 197 | | if the public utility fails to submit to the commission a copy of a notice of an |
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198 | 198 | | amendment to a rate change application under par. (b), the commission may not close |
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199 | 199 | | a public comment period or issue a final decision on a proposed rate change until the |
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200 | 200 | | notice is provided to customers and a copy of the notice is submitted to the |
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201 | 201 | | commission. |
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202 | 202 | | (8) The commission shall calculate annually and provide on its website the |
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203 | 203 | | average rate charged by gas or electricity public utilities to customers across all other |
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204 | 204 | | midwestern states in each of 3 classes of customers: residential, small commercial |
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205 | 205 | | and industrial, and large commercial and industrial. In this section, “all other |
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206 | 206 | | midwestern states” includes Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, |
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207 | 207 | | Missouri, Nebraska, North Dakota, Ohio, and South Dakota. |
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208 | 208 | | (END) |
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