LRB-3780/1
MDK:cjs:rs
2013 - 2014 LEGISLATURE
January 3, 2014 - Introduced by Representatives Kuglitsch and Kulp,
cosponsored by Senators Cowles and Farrow. Referred to Committee on
Energy and Utilities.
AB596,1,4 1An Act to amend 196.378 (3) (a) 1m., 196.49 (1) (am), 196.50 (1) (a) and 196.81
2(3) (b); and to create 196.50 (1) (am) of the statutes; relating to: renewable
3resource credits, removal of certain natural gas service laterals, natural gas
4public utility service in municipalities, and granting rule-making authority.
Analysis by the Legislative Reference Bureau
Under current law, an electric utility or retail electric cooperative (electric
provider) is subject to certain requirements for ensuring that, in a given year, a
specified percentage of the electricity that the electric provider sells to retail
customers or members is renewable energy. Such requirements are commonly
referred to as renewable portfolio standards (RPSs). Current law provides that each
megawatt hour of renewable energy that an electric provider sells to customers or
members creates one credit, which the electric provider may use to comply with an
RPS or sell to another electric provider for compliance with an RPS. Current law also
requires the Public Service Commission (PSC) to promulgate rules allowing an
electric provider, or a customer or member of an electric provider, to create other
credits based on the electric provider's, customer's, or member's use of specified
sources, but only if the use displaces the use of nonrenewable energy and satisfies
other requirements. Like the credits created from sales of renewable energy, the
credits under the rules may be used to comply with an RPS. This bill provides that
the rules must allow the credits to be created regardless of when the source used to
create the credit was placed in service.

Current law also requires a public utility to obtain a certificate from the PSC
before the public utility may provide service in a municipality already served by
another public utility. This bill creates an exception for natural gas public utilities.
The bill requires the PSC to promulgate rules allowing an additional natural gas
public utility to provide service in a municipality served by another natural gas
utility without obtaining a certificate from the PSC, but only if certain requirements
are satisfied. First, both utilities must enter into a territorial agreement regarding
the areas to be served by each utility in the municipality. Second, the area to be
served by the additional natural gas public utility must be adjacent to a municipality
that the additional natural gas public utility is already authorized to serve. Third,
for the exception to apply, the additional natural gas public utility must provide
service only to a limited number of customers in the municipality already served by
the other utility.
Finally, with certain exceptions, current law requires a public utility to obtain
the approval of the PSC before abandoning or discontinuing service lines and
extensions. One exception allows a public utility to remove a customer's electric or
steam service lateral if the removal is requested by the customer. This bill revises
that exception to allow a public utility also to remove a customer's natural gas service
lateral upon the request of a customer.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB596,1 1Section 1. 196.378 (3) (a) 1m. of the statutes is amended to read:
AB596,3,92 196.378 (3) (a) 1m. The commission shall promulgate rules that allow an
3electric provider or customer or member of an electric provider to create a renewable
4resource credit based on use in a year by the electric provider, customer, or member
5of solar energy, including solar water heating and direct solar applications such as
6solar light pipe technology; wind energy; hydroelectric energy; geothermal energy;
7biomass; biogas; synthetic gas created by the plasma gasification of waste; densified
8fuel pellets described in sub. (1) (h) 1. i.; or fuel described in sub. (1) (h) 1. j.; but only
9if the use displaces the electric provider's, customer's, or member's use of electricity
10that is derived from conventional resources, and only if the displacement is verifiable
11and measurable, as determined by the commission. The rules shall allow an electric
12provider, customer, or member to create a renewable resource credit based on 100

1percent of the amount of the displacement. The rules shall also allow an electric
2provider, customer, or member to create a renewable resource credit under this
3subdivision regardless of when the source used to create the credit was placed in
4service.
The rules may not allow an electric provider to create renewable resource
5credits under this subdivision based on renewable energy upon which renewable
6resource credits are created under subd. 1. The rules may also not allow an electric
7provider to create renewable resource credits under this subdivision based on
8hydroelectric energy that is not eligible for creating renewable resource credits
9under subd. 1.
AB596,2 10Section 2. 196.49 (1) (am) of the statutes is amended to read:
AB596,3,1711 196.49 (1) (am) No Except as provided in s. 196.50 (1) (am), no public utility
12not legally engaged in performing a utility service on August 1, 1931, in any
13municipality may commence the construction of any public utility plant, extension
14or facility, or render service in such municipality directly, or indirectly by serving any
15other public utility or agency engaged in public utility service or otherwise, unless
16the public utility has obtained a certificate from the commission authorizing it to
17transact public utility business.
AB596,3 18Section 3. 196.50 (1) (a) of the statutes is amended to read:
AB596,4,219 196.50 (1) (a) The Except as provided in par. (am), the commission may not
20grant any person a license, permit or franchise to own, operate, manage or control
21any plant or equipment for the production, transmission, delivery or furnishing of
22heat, light, water or power in the municipality, if there is in operation under an
23indeterminate permit a public utility engaged in similar service in the municipality,
24unless the person seeking the license, permit or franchise secures from the

1commission a declaration, after a public hearing of any interested party, that public
2convenience and necessity require the delivery of service by the applicant.
AB596,4 3Section 4. 196.50 (1) (am) of the statutes is created to read:
AB596,4,74 196.50 (1) (am) The commission shall promulgate rules allowing a natural gas
5public utility to provide service in a municipality served by another natural gas
6public utility without first obtaining a certificate to serve that municipality under
7s. 196.49 (1) and this subsection if all of the following apply:
AB596,4,98 1. The natural gas public utilities enter into a territorial agreement regarding
9areas to be served by each utility in the municipality.
AB596,4,1210 2. The area to be served by the additional natural gas public utility is adjacent
11to a municipality the additional natural gas public utility is already authorized to
12serve.
AB596,4,1413 3. The additional natural gas public utility will provide service only to a limited
14number of customers in the municipality.
AB596,5 15Section 5. 196.81 (3) (b) of the statutes is amended to read:
AB596,4,1916 196.81 (3) (b) A public utility's removal, at the request of a customer, of the
17customer's electric service drop or electric, natural gas, or steam service lateral,
18including any primary voltage or natural gas or steam line that is used exclusively
19to serve the customer requesting the removal.
AB596,6 20Section 6. Initial applicability.
AB596,4,22 21(1) Removal of natural gas lines. The treatment of section 196.81 (3) (b) of the
22statutes first applies to removals that occur on the effective date of this subsection.
AB596,5,3
1(2) Renewable resource credits. The treatment of section 196.378 (3) (a) 1m.
2of the statutes first applies to renewable resource credits created on the effective date
3of this subsection.
AB596,5,44 (End)
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