Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB681 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 681
5	5	November 27, 2023 - Introduced by Representatives GUSTAFSON, NEYLON, BALDEH,
6	6	DITTRICH, KRUG, MURPHY, O'CONNOR, RETTINGER, ROZAR, SPIROS, TITTL and
7	7	TRANEL, cosponsored by Senators COWLES, STROEBEL, BALLWEG and NASS.
8	8	Referred to Committee on Energy and Utilities.
9	9	*AUTHORS SUBJECT TO CHANGE*
10	10	AN ACT to amend 196.371 (3) (b); and to create 196.371 (3) (bs), 196.49 (5r) (d)
11	11	and 196.491 (3) (L) of the statutes; relating to: amending certain orders and
12	12	certificates issued by the Public Service Commission.
13	13	Analysis by the Legislative Reference Bureau
14	14	This bill authorizes the Public Service Commission to rescind, alter, or amend
15	15	an advance order specifying the rate-making principles applicable to a public
16	16	utility's recovery of capital costs for purchasing or constructing an electric
17	17	generating facility. Under the bill, PSC may amend such an order if it determines
18	18	that market conditions related to the facility have changed and that the actual costs
19	19	of the facility have substantially decreased since the order was issued. The public
20	20	utility has at least 60 days to accept or waive acceptance of an order altered or
21	21	amended under the bill. If the public utility waives acceptance of that order, PSC
22	22	must withdraw that order and any other prior advance order specifying rate-making
23	23	principles for recovery of the facility's capital costs, and must consider the facility's
24	24	capital costs in all future rate-making proceedings as if no advance order had been
25	25	issued.
26	26	Under current law, a public utility may apply to PSC for an advance order
27	27	specifying the rate-making principles for recovery of capital costs of a facility. If the
28	28	public utility accepts the advance order, PSC is bound by that order in its treatment
29	29	of the recovery of the facility's capital costs in all future rate-making proceedings
30	30	involving the public utility. If the public utility waives acceptance of the advance
31	31	order, PSC must withdraw the order and consider the facility's capital costs in all
32	32	future rate-making proceedings as if no advance order had been issued.
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37	37	ASSEMBLY BILL 681
38	38	The bill also requires PSC to reopen proceedings that resulted in the issuance
39	39	of a certificate of public convenience and necessity (CPCN) or a certificate of
40	40	authority (CA) for a facility or project if it determines that the actual cost of
41	41	constructing the facility or project is 5 percent or more above the construction cost
42	42	approved by PSC in issuing the CPCN or CA. PSC must hold a public hearing and
43	43	public comment period of at least 15 days on the reasons for the increase in
44	44	construction costs. If in the public interest, PSC may rescind, alter, or amend the
45	45	CPCN or CA for the facility or project. Under current law, a person seeking to
46	46	construct a large electric generating facility or high-voltage transmission line must
47	47	obtain a CPCN from PSC. In addition, a public utility must obtain a CA from PSC
48	48	to construct certain other facilities and projects.
49	49	For further information see the state fiscal estimate, which will be printed as
50	50	an appendix to this bill.
51	51	The people of the state of Wisconsin, represented in senate and assembly, do
52	52	enact as follows:
53	53	SECTION 1. 196.371 (3) (b) of the statutes is amended to read:
54	54	196.371 (3) (b) If Except as provided in par. (bs), if the public utility accepts the
55	55	order, then, in all future rate-making proceedings regarding the public utility, the
56	56	order shall be binding on the commission in its treatment of the recovery of the
57	57	capital costs of the facility that is subject to the order and the commission may not
58	58	consider the order or the effects of the order in its treatment of the recovery of any
59	59	other cost of the public utility.
60	60	SECTION 2. 196.371 (3) (bs) of the statutes is created to read:
61	61	196.371 (3) (bs) 1. The commission may at any time, upon notice to the public
62	62	utility and after a hearing, rescind, alter, or amend an order under this section if the
63	63	commission determines that market conditions related to the facility have
64	64	substantially changed and the actual costs of the facility have substantially
65	65	decreased since the time that the order was issued.
66	66	2. The commission shall specify in an altered or amended order under this
67	67	paragraph a deadline at least 60 days after the date of issuance of the order for the
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85	85	SECTION 2
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87	87	public utility to notify the commission in writing whether the public utility accepts
88	88	or waives acceptance of the order. If the public utility does not make the notification
89	89	by the deadline specified in the order, the public utility is considered to have waived
90	90	acceptance of the order.
91	91	3. Except as provided in subd. 1., if the public utility accepts the order under
92	92	subd. 1., then, in all future rate-making proceedings regarding the public utility, the
93	93	order shall be binding on the commission in its treatment of the recovery of the
94	94	capital costs of the facility that is subject to the order, and the commission may not
95	95	consider the order or the effects of the order in its treatment of the recovery of any
96	96	other cost of the public utility.
97	97	4. If the public utility waives or is considered to have waived acceptance of the
98	98	order under subd. 1., the commission shall withdraw that order and any other prior
99	99	order under this section regarding the facility and consider the capital costs of the
100	100	facility in all future rate-making proceedings in the same manner as the commission
101	101	considers capital costs for which no order has been issued under this section.
102	102	SECTION 3. 196.49 (5r) (d) of the statutes is created to read:
103	103	196.49 (5r) (d) 1. The commission shall reopen the proceeding that resulted in
104	104	the issuance of a certificate sub. (3) or (5) if the commission determines that the
105	105	actual cost of constructing the project, plant, equipment, property, or facility for
106	106	which the certificate was issued is 5 percent or more above the construction cost
107	107	approved by the commission in issuing the certificate.
108	108	2. The commission shall hold a public hearing on the reasons for the increase
109	109	in construction costs of the project, plant, equipment, property, or facility for a
110	110	proceeding reopened under subd. 1. and shall hold a public comment period of at least
111	111	15 days on the reasons for the increase in construction costs.
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138	138	SECTION 3 ASSEMBLY BILL 681
139	139	3. After the hearing and comment period required under subd. 2., if in the
140	140	public interest, the commission may rescind, alter, or amend the order issuing the
141	141	certificate under sub. (3) or (5) for the project, plant, equipment, property, or facility.
142	142	SECTION 4. 196.491 (3) (L) of the statutes is created to read:
143	143	196.491 (3) (L) 1. The commission shall reopen the proceeding that resulted in
144	144	the issuance of a certificate of public convenience and necessity under this subsection
145	145	for a facility if the commission determines that the actual cost of constructing the
146	146	facility is 5 percent or more above the cost of the constructing the facility approved
147	147	by the commission in issuing the certificate.
148	148	2. The commission shall hold a public hearing on the reasons for the increase
149	149	in construction costs of the facility for a proceeding reopened under subd. 1 and shall
150	150	hold a public comment period of at least 15 days on the reasons for the increase in
151	151	construction costs of the facility.
152	152	3. After the hearing and comment period required under subd. 2., if in the
153	153	public interest, the commission may rescind, alter, or amend the order issuing the
154	154	certificate of public convenience and necessity under this subsection for the facility.
155	155	(END)
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