Wisconsin Assembly Bill AB73

Wisconsin 2023-2024 Regular Session

• Introduced: 2/28/23
• Refer: 2/28/23
• Report Pass: 2/20/24
• Refer: 2/20/24
• Failed: 4/15/24

Caption

Changing the phase-out of utility aid payments for decommissioned power plants. (FE)

Impact

If passed, AB73 will impact local municipalities that host power production facilities by altering the financial landscape surrounding decommissioned plants. Under current law, municipalities receive utility aid payments for five years following decommissioning, based on past years’ amounts. The amendment proposed in this bill will initially maintain these payments even if some generation units are still operational, thus safeguarding local government revenue during transitional phases. This change is anticipated to create a more predictable fiscal environment for municipalities that rely on such payments for budgeting and public services.

Summary

Assembly Bill 73 seeks to amend several statutes regarding the phase-out of utility aid payments for decommissioned power production plants in Wisconsin. The legislation specifically changes the manner in which utility aid payments are handled once a power production facility is decommissioned, meaning that the facility either stops being funded through the utility's rates or is sold to someone not liable for the state's annual license fees. The aim of the bill is to provide clearer definitions and a consistent approach to how municipalities handle these payments as plants transition from being tax-exempt to taxable under property tax law.

Contention

The bill has raised various points of contention among stakeholders, particularly local governments and energy producers. Proponents argue that the adjustments made by AB73 are necessary to keep municipal funding stable during periods of change in the status of power plants. In contrast, some critics express concern that the prolonged utility aid payments may encourage inefficient operational practices among power producers and could ultimately burden taxpayers if those costs are passed through. Discussions surrounding this bill highlight the balance between supporting local governments financially while ensuring responsible management of energy resources.