Wisconsin 2025-2026 Regular Session

Wisconsin Assembly Bill AB254 Compare Versions

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

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1	1	2025 - 2026 LEGISLATURE
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4	4	2025 ASSEMBLY BILL 254
5	5	May 8, 2025 - Introduced by Representatives SUMMERFIELD, DOYLE, GREEN,
6	6	MOSES, O'CONNOR, PIWOWARCZYK and STROUD, cosponsored by Senators
7	7	JAMES, PFAFF, QUINN and SMITH. Referred to Committee on State Affairs.
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9	9	*AUTHORS SUBJECT TO CHANGE*
10	10	AN ACT to renumber 182.71 (1) (a); to amend 182.71 (5) (b), 182.71 (5) (c),
11	11	182.71 (5) (f), 182.71 (6) (intro.), 182.71 (6) (a), 182.71 (6) (f), 182.71 (7) (c),
12	12	182.71 (7) (d) and 182.71 (8); to create 182.71 (1) (ag) of the statutes; relating
13	13	to: regulation of the Chippewa and Flambeau Improvement Company.
14	14	Analysis by the Legislative Reference Bureau
15	15	Current law requires the Chippewa and Flambeau Improvement Company to
16	16	produce as nearly as practicable a uniform flow of water on certain rivers by storing
17	17	in reservoirs surplus water for discharge when the water supply is low, to improve
18	18	the usefulness of the rivers and to reduce flood damage. To do so, the company may
19	19	construct, maintain, or operate reservoirs, dams, and other improvements located
20	20	along certain rivers and their tributaries, divert flood waters, and deepen or
21	21	otherwise improve tributaries to improve navigation. If the company operates
22	22	water reservoirs meeting certain requirements, the company may charge tolls to the
23	23	operators of water power located on certain rivers or tributaries below the reservoir
24	24	and benefitted by the reservoir. The Public Service Commission determines the
25	25	amount of these tolls based on certain criteria and provides notice to each water
26	26	power operator to be charged with tolls.
27	27	This bill makes the following changes regarding the Chippewa and Flambeau
28	28	Improvement Company:
29	29	1. Allows tolls to be levied and used to pay for acquisition and improvement of
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37	37	SECTION 1
38	38	the company[s reservoir system. Current law prohibits levying and using tolls for
39	39	those purposes and prohibits tolls from exceeding the reasonable costs of operation
40	40	and maintenance, including rent paid for leased properties, and a net annual
41	41	return of 6 percent on capital invested in the company, including the par value of
42	42	negotiable bonds issued by the company.
43	43	2. Allows tolls to be levied to recover the costs of taxes and depreciation and to
44	44	provide a reasonable allowance for working capital.
45	45	3. Makes a water power operator that operates for at least two months of a six-
46	46	month toll period subject to tolls for the entire six-month toll period. Under current
47	47	law, such a water power operator is not subject to tolls for the entire six-month toll
48	48	period.
49	49	4. Eliminates the restriction under current law that restricts negotiable
50	50	interest-bearing bonds issued by the company from funding no more than half of
51	51	the cost of acquiring dams, reservoirs, and rights.
52	52	5. Eliminates the prohibition under current law against the company from
53	53	paying dividends to its stockholders while any of its bonds are outstanding, and also
54	54	eliminates the current law requirement that if any company bonds are outstanding,
55	55	subject to PSC approval, the earnings of the capital stock must be invested in a
56	56	sinking fund to retire the outstanding bonds.
57	57	The people of the state of Wisconsin, represented in senate and assembly, do
58	58	enact as follows:
59	59	SECTION 1. 182.71 (1) (a) of the statutes is renumbered 182.71 (1) (ar).
60	60	SECTION 2. 182.71 (1) (ag) of the statutes is created to read:
61	61	182.71 (1) (ag) XCapital investedY means capital actually paid in and the par
62	62	value of all negotiable bonds or other obligations issued by the company.
63	63	SECTION 3. 182.71 (5) (b) of the statutes is amended to read:
64	64	182.71 (5) (b) If the company operates water reservoirs under this section
65	65	capable of storing and discharging 1.5 billion cubic feet of water that would not be
66	66	naturally stored, it may charge uniform tolls to the owners, lessees or operators of
67	67	every improved and operated water power located upon the Chippewa or Flambeau
68	68	rivers or any of their tributaries below any of these reservoirs and benefited by the
69	69	operation of these reservoirs. The sum of the tolls may not exceed the reasonable
70	70	costs of operation and maintenance including taxes, depreciation, and rent paid for
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87	87	leased properties and, plus a net annual return on the cash capital actually paid in
88	88	on the stock subscriptions to the company and on the par value of all negotiable
89	89	bonds issued by the company capital invested and a reasonable allowance for
90	90	working capital. The commission shall determine the net annual return.
91	91	SECTION 4. 182.71 (5) (c) of the statutes is amended to read:
92	92	182.71 (5) (c) The commission shall fix the tolls semiannually in proportion to
93	93	the benefits received from the reservoir system by each improved and operated
94	94	water power. A water power liable to tolls and operated 2 months or more during a
95	95	6-month toll period shall not be subject to tolls for the entire period. A water power
96	96	operating for less than 2 months during a 6-month toll period shall not be subject to
97	97	a toll. The company shall employ hydraulic engineers, selected by the commission,
98	98	to assist the company and the commission in determining the tolls to be charged.
99	99	The expense of employing the engineers shall be a part of the cost of maintenance
100	100	and operation of the works.
101	101	SECTION 5. 182.71 (5) (f) of the statutes is amended to read:
102	102	182.71 (5) (f) No tolls shall be levied or used to pay for any part of the original
103	103	acquisition or improvement of the reservoir system. The tolls shall be a lien on the
104	104	water power, dam, franchises and flowage rights of the person or corporation
105	105	charged with the tolls. The company may sue to enforce the lien or for the sale of
106	106	the encumbered property.
107	107	SECTION 6. 182.71 (6) (intro.) of the statutes is amended to read:
108	108	182.71 (6) (intro.) On or before June 15 and December 15 of each year, the
109	109	company shall provide the commission with a statement showing all of the
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138	138	SECTION 7
139	139	SECTION 7. 182.71 (6) (a) of the statutes is amended to read:
140	140	182.71 (6) (a) All expenditures made or necessary to be made for the 6-month
141	141	period preceding the next July 1 or January 1 for maintenance and, operation, and
142	142	depreciation of the reservoir system.
143	143	SECTION 8. 182.71 (6) (f) of the statutes is amended to read:
144	144	182.71 (6) (f) A recommendation of the amount of tolls necessary to pay the
145	145	cost of maintenance and, operation and, taxes and depreciation, a net return of 6
146	146	percent per year on the capital invested, including the par value of the outstanding
147	147	negotiable bonds and a reasonable allowance for working capital, together with a
148	148	recommendation as to the apportionment of the tolls against the owners or
149	149	operators of improved powers under sub. (5); and.
150	150	SECTION 9. 182.71 (7) (c) of the statutes is amended to read:
151	151	182.71 (7) (c) The company may, after certification from the commission
152	152	according to the procedures under ss. 201.03 to 201.04, issue capital stock or
153	153	negotiable bonds. The money received by the company upon account of capital stock
154	154	or sale of its negotiable bonds shall be used to pay the original cost of purchase,
155	155	construction, or improvement of the reservoir system. All tolls collected under sub.
156	156	(5) shall be applied only to the payment of cost of maintenance and operation of the
157	157	system and payment of the net return on capital so that the capital stock and bonds
158	158	of the corporation shall be maintained at par value at all times.
159	159	SECTION 10. 182.71 (7) (d) of the statutes is amended to read:
160	160	182.71 (7) (d) Subject to approval of the commission, the company may issue
161	161	negotiable interest-bearing bonds to provide funds to acquire dams, reservoirs, and
162	162	rights under this section. The issue shall not exceed one-half of the total cost of the
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190	190	SECTION 10
191	191	improvement. The company may secure payment by mortgage of its property. If
192	192	any bonds are issued and outstanding, all earnings of the capital stock shall be
193	193	invested subject to the approval of the commission as a sinking fund for the purpose
194	194	of retiring outstanding bonds, and while any bonds are outstanding, no dividends
195	195	shall be paid to the stockholders of record.
196	196	SECTION 11. 182.71 (8) of the statutes is amended to read:
197	197	182.71 (8) This state shall have the right at any time, whenever it may have
198	198	the constitutional power, to take over to itself and become owner of all reservoirs
199	199	and other works and property acquired by the Chippewa and Flambeau
200	200	Improvement Company, under this section, by paying therefor the cash capital
201	201	actually paid on the capital stock of total capital invested by the company
202	202	theretofore lawfully issued and outstanding or the actual value of the physical
203	203	properties so taken over and without any allowance for franchises or goodwill of the
204	204	business, such actual value to be determined by the commission.
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