Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB650 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 SENATE BILL 650
5	5	November 9, 2023 - Introduced by Senators COWLES, STROEBEL, BALLWEG and NASS,
6	6	cosponsored by Representatives G USTAFSON, NEYLON, TITTL, BALDEH,
7	7	DITTRICH, KRUG, MURPHY, O'CONNOR, RETTINGER, ROZAR, SPIROS and TRANEL.
8	8	Referred to Committee on Utilities and Technology.
9	9	AN ACT to amend 196.371 (3) (b); and to create 196.371 (3) (bs), 196.49 (5r) (d)
10	10	and 196.491 (3) (L) of the statutes; relating to: amending certain orders and
11	11	certificates issued by the Public Service Commission.
12	12	Analysis by the Legislative Reference Bureau
13	13	This bill authorizes the Public Service Commission to rescind, alter, or amend
14	14	an advance order specifying the rate-making principles applicable to a public
15	15	utility's recovery of capital costs for purchasing or constructing an electric
16	16	generating facility. Under the bill, PSC may amend such an order if it determines
17	17	that market conditions related to the facility have changed and that the actual costs
18	18	of the facility have substantially decreased since the order was issued. The public
19	19	utility has at least 60 days to accept or waive acceptance of an order altered or
20	20	amended under the bill. If the public utility waives acceptance of that order, PSC
21	21	must withdraw that order and any other prior advance order specifying rate-making
22	22	principles for recovery of the facility's capital costs, and must consider the facility's
23	23	capital costs in all future rate-making proceedings as if no advance order had been
24	24	issued.
25	25	Under current law, a public utility may apply to PSC for an advance order
26	26	specifying the rate-making principles for recovery of capital costs of a facility. If the
27	27	public utility accepts the advance order, PSC is bound by that order in its treatment
28	28	of the recovery of the facility's capital costs in all future rate-making proceedings
29	29	involving the public utility. If the public utility waives acceptance of the advance
30	30	order, PSC must withdraw the order and consider the facility's capital costs in all
31	31	future rate-making proceedings as if no advance order had been issued.
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36	36	SENATE BILL 650
37	37	The bill also requires PSC to reopen proceedings that resulted in the issuance
38	38	of a certificate of public convenience and necessity (CPCN) or a certificate of
39	39	authority (CA) for a facility or project if it determines that the actual cost of
40	40	constructing the facility or project is 5 percent or more above the construction cost
41	41	approved by PSC in issuing the CPCN or CA. PSC must hold a public hearing and
42	42	public comment period of at least 15 days on the reasons for the increase in
43	43	construction costs. If in the public interest, PSC may rescind, alter, or amend the
44	44	CPCN or CA for the facility or project. Under current law, a person seeking to
45	45	construct a large electric generating facility or high-voltage transmission line must
46	46	obtain a CPCN from PSC. In addition, a public utility must obtain a CA from PSC
47	47	to construct certain other facilities and projects.
48	48	For further information see the state fiscal estimate, which will be printed as
49	49	an appendix to this bill.
50	50	The people of the state of Wisconsin, represented in senate and assembly, do
51	51	enact as follows:
52	52	SECTION 1. 196.371 (3) (b) of the statutes is amended to read:
53	53	196.371 (3) (b) If Except as provided in par. (bs), if the public utility accepts the
54	54	order, then, in all future rate-making proceedings regarding the public utility, the
55	55	order shall be binding on the commission in its treatment of the recovery of the
56	56	capital costs of the facility that is subject to the order and the commission may not
57	57	consider the order or the effects of the order in its treatment of the recovery of any
58	58	other cost of the public utility.
59	59	SECTION 2. 196.371 (3) (bs) of the statutes is created to read:
60	60	196.371 (3) (bs) 1. The commission may at any time, upon notice to the public
61	61	utility and after a hearing, rescind, alter, or amend an order under this section if the
62	62	commission determines that market conditions related to the facility have
63	63	substantially changed and the actual costs of the facility have substantially
64	64	decreased since the time that the order was issued.
65	65	2. The commission shall specify in an altered or amended order under this
66	66	paragraph a deadline at least 60 days after the date of issuance of the order for the
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84	84	SECTION 2
85	85	SENATE BILL 650
86	86	public utility to notify the commission in writing whether the public utility accepts
87	87	or waives acceptance of the order. If the public utility does not make the notification
88	88	by the deadline specified in the order, the public utility is considered to have waived
89	89	acceptance of the order.
90	90	3. Except as provided in subd. 1., if the public utility accepts the order under
91	91	subd. 1., then, in all future rate-making proceedings regarding the public utility, the
92	92	order shall be binding on the commission in its treatment of the recovery of the
93	93	capital costs of the facility that is subject to the order, and the commission may not
94	94	consider the order or the effects of the order in its treatment of the recovery of any
95	95	other cost of the public utility.
96	96	4. If the public utility waives or is considered to have waived acceptance of the
97	97	order under subd. 1., the commission shall withdraw that order and any other prior
98	98	order under this section regarding the facility and consider the capital costs of the
99	99	facility in all future rate-making proceedings in the same manner as the commission
100	100	considers capital costs for which no order has been issued under this section.
101	101	SECTION 3. 196.49 (5r) (d) of the statutes is created to read:
102	102	196.49 (5r) (d) 1. The commission shall reopen the proceeding that resulted in
103	103	the issuance of a certificate sub. (3) or (5) if the commission determines that the
104	104	actual cost of constructing the project, plant, equipment, property, or facility for
105	105	which the certificate was issued is 5 percent or more above the construction cost
106	106	approved by the commission in issuing the certificate.
107	107	2. The commission shall hold a public hearing on the reasons for the increase
108	108	in construction costs of the project, plant, equipment, property, or facility for a
109	109	proceeding reopened under subd. 1. and shall hold a public comment period of at least
110	110	15 days on the reasons for the increase in construction costs.
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137	137	SECTION 3 SENATE BILL 650
138	138	3. After the hearing and comment period required under subd. 2., if in the
139	139	public interest, the commission may rescind, alter, or amend the order issuing the
140	140	certificate under sub. (3) or (5) for the project, plant, equipment, property, or facility.
141	141	SECTION 4. 196.491 (3) (L) of the statutes is created to read:
142	142	196.491 (3) (L) 1. The commission shall reopen the proceeding that resulted in
143	143	the issuance of a certificate of public convenience and necessity under this subsection
144	144	for a facility if the commission determines that the actual cost of constructing the
145	145	facility is 5 percent or more above the cost of the constructing the facility approved
146	146	by the commission in issuing the certificate.
147	147	2. The commission shall hold a public hearing on the reasons for the increase
148	148	in construction costs of the facility for a proceeding reopened under subd. 1 and shall
149	149	hold a public comment period of at least 15 days on the reasons for the increase in
150	150	construction costs of the facility.
151	151	3. After the hearing and comment period required under subd. 2., if in the
152	152	public interest, the commission may rescind, alter, or amend the order issuing the
153	153	certificate of public convenience and necessity under this subsection for the facility.
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