Wisconsin 2025-2026 Regular Session

Wisconsin Senate Bill SB255 Compare Versions

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

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1	1	2025 - 2026 LEGISLATURE
2	2	LRB-2641/1
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4	4	2025 SENATE BILL 255
5	5	May 9, 2025 - Introduced by Senators JAMES, PFAFF, QUINN and SMITH,
6	6	cosponsored by Representatives SUMMERFIELD, DOYLE, GREEN, MOSES,
7	7	O'CONNOR, PIWOWARCZYK and STROUD. Referred to Committee on Utilities
8	8	and Tourism.
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10	10	*AUTHORS SUBJECT TO CHANGE*
11	11	AN ACT to renumber 182.71 (1) (a); to amend 182.71 (5) (b), 182.71 (5) (c),
12	12	182.71 (5) (f), 182.71 (6) (intro.), 182.71 (6) (a), 182.71 (6) (f), 182.71 (7) (c),
13	13	182.71 (7) (d) and 182.71 (8); to create 182.71 (1) (ag) of the statutes; relating
14	14	to: regulation of the Chippewa and Flambeau Improvement Company.
15	15	Analysis by the Legislative Reference Bureau
16	16	Current law requires the Chippewa and Flambeau Improvement Company to
17	17	produce as nearly as practicable a uniform flow of water on certain rivers by storing
18	18	in reservoirs surplus water for discharge when the water supply is low, to improve
19	19	the usefulness of the rivers and to reduce flood damage. To do so, the company may
20	20	construct, maintain, or operate reservoirs, dams, and other improvements located
21	21	along certain rivers and their tributaries, divert flood waters, and deepen or
22	22	otherwise improve tributaries to improve navigation. If the company operates
23	23	water reservoirs meeting certain requirements, the company may charge tolls to the
24	24	operators of water power located on certain rivers or tributaries below the reservoir
25	25	and benefitted by the reservoir. The Public Service Commission determines the
26	26	amount of these tolls based on certain criteria and provides notice to each water
27	27	power operator to be charged with tolls.
28	28	This bill makes the following changes regarding the Chippewa and Flambeau
29	29	Improvement Company:
30	30	1. Allows tolls to be levied and used to pay for acquisition and improvement of
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35	35	SENATE BILL 255
36	36	- 2 - LRB-2641/1
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38	38	SECTION 1
39	39	the company[s reservoir system. Current law prohibits levying and using tolls for
40	40	those purposes and prohibits tolls from exceeding the reasonable costs of operation
41	41	and maintenance, including rent paid for leased properties, and a net annual
42	42	return of 6 percent on capital invested in the company, including the par value of
43	43	negotiable bonds issued by the company.
44	44	2. Allows tolls to be levied to recover the costs of taxes and depreciation and to
45	45	provide a reasonable allowance for working capital.
46	46	3. Makes a water power operator that operates for at least two months of a six-
47	47	month toll period subject to tolls for the entire six-month toll period. Under current
48	48	law, such a water power operator is not subject to tolls for the entire six-month toll
49	49	period.
50	50	4. Eliminates the restriction under current law that restricts negotiable
51	51	interest-bearing bonds issued by the company from funding no more than half of
52	52	the cost of acquiring dams, reservoirs, and rights.
53	53	5. Eliminates the prohibition under current law against the company from
54	54	paying dividends to its stockholders while any of its bonds are outstanding, and also
55	55	eliminates the current law requirement that if any company bonds are outstanding,
56	56	subject to PSC approval, the earnings of the capital stock must be invested in a
57	57	sinking fund to retire the outstanding bonds.
58	58	The people of the state of Wisconsin, represented in senate and assembly, do
59	59	enact as follows:
60	60	SECTION 1. 182.71 (1) (a) of the statutes is renumbered 182.71 (1) (ar).
61	61	SECTION 2. 182.71 (1) (ag) of the statutes is created to read:
62	62	182.71 (1) (ag) XCapital investedY means capital actually paid in and the par
63	63	value of all negotiable bonds or other obligations issued by the company.
64	64	SECTION 3. 182.71 (5) (b) of the statutes is amended to read:
65	65	182.71 (5) (b) If the company operates water reservoirs under this section
66	66	capable of storing and discharging 1.5 billion cubic feet of water that would not be
67	67	naturally stored, it may charge uniform tolls to the owners, lessees or operators of
68	68	every improved and operated water power located upon the Chippewa or Flambeau
69	69	rivers or any of their tributaries below any of these reservoirs and benefited by the
70	70	operation of these reservoirs. The sum of the tolls may not exceed the reasonable
71	71	costs of operation and maintenance including taxes, depreciation, and rent paid for
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88	88	leased properties and, plus a net annual return on the cash capital actually paid in
89	89	on the stock subscriptions to the company and on the par value of all negotiable
90	90	bonds issued by the company capital invested and a reasonable allowance for
91	91	working capital. The commission shall determine the net annual return.
92	92	SECTION 4. 182.71 (5) (c) of the statutes is amended to read:
93	93	182.71 (5) (c) The commission shall fix the tolls semiannually in proportion to
94	94	the benefits received from the reservoir system by each improved and operated
95	95	water power. A water power liable to tolls and operated 2 months or more during a
96	96	6-month toll period shall not be subject to tolls for the entire period. A water power
97	97	operating for less than 2 months during a 6-month toll period shall not be subject to
98	98	a toll. The company shall employ hydraulic engineers, selected by the commission,
99	99	to assist the company and the commission in determining the tolls to be charged.
100	100	The expense of employing the engineers shall be a part of the cost of maintenance
101	101	and operation of the works.
102	102	SECTION 5. 182.71 (5) (f) of the statutes is amended to read:
103	103	182.71 (5) (f) No tolls shall be levied or used to pay for any part of the original
104	104	acquisition or improvement of the reservoir system. The tolls shall be a lien on the
105	105	water power, dam, franchises and flowage rights of the person or corporation
106	106	charged with the tolls. The company may sue to enforce the lien or for the sale of
107	107	the encumbered property.
108	108	SECTION 6. 182.71 (6) (intro.) of the statutes is amended to read:
109	109	182.71 (6) (intro.) On or before June 15 and December 15 of each year, the
110	110	company shall provide the commission with a statement showing all of the
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139	139	SECTION 7
140	140	SECTION 7. 182.71 (6) (a) of the statutes is amended to read:
141	141	182.71 (6) (a) All expenditures made or necessary to be made for the 6-month
142	142	period preceding the next July 1 or January 1 for maintenance and, operation, and
143	143	depreciation of the reservoir system.
144	144	SECTION 8. 182.71 (6) (f) of the statutes is amended to read:
145	145	182.71 (6) (f) A recommendation of the amount of tolls necessary to pay the
146	146	cost of maintenance and, operation and, taxes and depreciation, a net return of 6
147	147	percent per year on the capital invested, including the par value of the outstanding
148	148	negotiable bonds and a reasonable allowance for working capital, together with a
149	149	recommendation as to the apportionment of the tolls against the owners or
150	150	operators of improved powers under sub. (5); and.
151	151	SECTION 9. 182.71 (7) (c) of the statutes is amended to read:
152	152	182.71 (7) (c) The company may, after certification from the commission
153	153	according to the procedures under ss. 201.03 to 201.04, issue capital stock or
154	154	negotiable bonds. The money received by the company upon account of capital stock
155	155	or sale of its negotiable bonds shall be used to pay the original cost of purchase,
156	156	construction, or improvement of the reservoir system. All tolls collected under sub.
157	157	(5) shall be applied only to the payment of cost of maintenance and operation of the
158	158	system and payment of the net return on capital so that the capital stock and bonds
159	159	of the corporation shall be maintained at par value at all times.
160	160	SECTION 10. 182.71 (7) (d) of the statutes is amended to read:
161	161	182.71 (7) (d) Subject to approval of the commission, the company may issue
162	162	negotiable interest-bearing bonds to provide funds to acquire dams, reservoirs, and
163	163	rights under this section. The issue shall not exceed one-half of the total cost of the
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191	191	SECTION 10
192	192	improvement. The company may secure payment by mortgage of its property. If
193	193	any bonds are issued and outstanding, all earnings of the capital stock shall be
194	194	invested subject to the approval of the commission as a sinking fund for the purpose
195	195	of retiring outstanding bonds, and while any bonds are outstanding, no dividends
196	196	shall be paid to the stockholders of record.
197	197	SECTION 11. 182.71 (8) of the statutes is amended to read:
198	198	182.71 (8) This state shall have the right at any time, whenever it may have
199	199	the constitutional power, to take over to itself and become owner of all reservoirs
200	200	and other works and property acquired by the Chippewa and Flambeau
201	201	Improvement Company, under this section, by paying therefor the cash capital
202	202	actually paid on the capital stock of total capital invested by the company
203	203	theretofore lawfully issued and outstanding or the actual value of the physical
204	204	properties so taken over and without any allowance for franchises or goodwill of the
205	205	business, such actual value to be determined by the commission.
206	206	(END)
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