LRB-4143/1
MDK:cjs:jm
2013 - 2014 LEGISLATURE
March 31, 2014 - Introduced by Representative Shankland. Referred to Committee
on Energy and Utilities.
AB899,1,2
1An Act to amend 196.025 (1) (c) 1. and 196.378 (4m) (a); and
to create 196.378
2(4j) of the statutes;
relating to: value of solar tariffs for electric utilities.
Analysis by the Legislative Reference Bureau
This bill requires the Public Service Commission (PSC) to require each retail
electric utility to file tariffs for the utility to purchase electricity generated by solar
facilities with a capacity of one megawatt (MW) or less that are located on the
premises of the utility's customers. Under PSC practices, "tariff" refers to a filing
that a public utility makes with the PSC that sets forth rates, terms, and conditions
of service. The bill refers to a tariff that is required to be filed under the bill as a
"value of solar tariff." The bill requires the PSC to approve a value of solar tariff that
satisfies the requirements below.
First, the tariff must establish kilowatt hour rates for the purchases that are
calculated under methodologies established by the PSC. The methodologies must
allow an electric utility to recover the cost of providing service to retail customers
while taking into account the value of the electricity purchased, including the value
resulting from its generation and delivery. Environmental value must also be taken
into account, as well as the value to the electric utility of lower generation and
transmission costs and fewer distribution and transmission losses. The PSC must
allow public comment on any proposed methodology for at least 90 days before
establishing the methodology. Second, the kilowatt hour rates for customers that are
established under the tariff may not be less than the electric utility's retail rates for
customers in the same class. Third, a tariff must require that customers sell
electricity generated by solar facilities to the same electric utility that provides
service to the customers. Finally, the tariffs must satisfy certain requirements for
crediting customer bills for net inputs to the utility's system that result from
purchases.
The bill also requires the PSC to subject the filing and approval of value of solar
tariffs to the same procedural requirements that the PSC applies to tariffs that offer
net metering. Under PSC orders, net metering refers to requirements for an electric
utility to credit customers for certain electricity generated at customer premises.
Also, if a retail customer's solar facility with a capacity of one MW or less is eligible
for net metering offered by an electric utility, the bill gives the customer the option
of accepting net metering or requiring the electric utility to purchase electricity
generated by the solar facility under a value of solar tariff. The bill requires the PSC
to ensure that value of solar and net metering tariffs allow retail customers to
exercise that option on a periodic basis.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB899,1
1Section
1. 196.025 (1) (c) 1. of the statutes is amended to read:
AB899,2,92
196.025
(1) (c) 1. In a proceeding in which an investor-owned electric public
3utility is a party,
except a proceeding on a value of solar tariff required under s.
4196.378 (4j) (b), the commission shall not order or otherwise impose any renewable
5resource requirements on the investor-owned electric public utility if the
6commission has fulfilled all of its duties under s. 196.378 and the commission has
7informed the utility under s. 196.378 (2) (c) that, with respect to the most recent
8report submitted under s. 196.378 (2) (c), the utility is in compliance with the
9requirements of s. 196.378 (2) (a) 2.
AB899,2
10Section
2. 196.378 (4j) of the statutes is created to read:
AB899,2,1111
196.378
(4j) Value of solar tariffs. (a) In this subsection:
AB899,2,1312
1. "Solar facility" means a facility that generates electricity from solar energy
13and that has a capacity of one megawatt or less.
AB899,2,1414
2. "Value of solar tariff" means a tariff approved under par. (b).
AB899,3,4
1(b) The commission shall require each electric utility to file tariffs for the
2electric utility to purchase electricity generated by solar facilities located at the
3premises of retail customers. The commission shall approve a tariff that satisfies all
4of the following:
AB899,3,135
1. The tariff establishes kilowatt hour rates for the purchases that are
6calculated under methodologies established by the commission that allow an electric
7utility to recover the cost of providing service to the retail customers while taking into
8account the value of the electricity purchased, including the value resulting from its
9generation and delivery, its environmental value, and the value to the electric utility
10of lower generation and transmission costs and fewer distribution and transmission
11losses. The commission shall allow public comment on any proposed methodology
12under this subdivision for at least 90 days before the commission establishes the
13methodology.
AB899,3,1614
2. The kilowatt hour rates established under subd. 1. for customers are not less
15than the retail rates of the electric utility for customers in the same class that are
16in effect at the time the tariff is filed.
AB899,3,1817
3. The tariff requires a retail customer to sell electricity generated by the solar
18facilities to the same electric utility from which the customer obtains service.
AB899,3,2419
4. The tariff provides for creating a credit on a retail customer's bill for any net
20input to the electric utility's system that results from a purchase. If the amount of
21the credit exceeds the amount owed for the billing period in which the credit was
22created, the tariff shall allow the customer to apply the remaining balance of the
23credit in any subsequent billing period that is no later than one year after the billing
24period in which the credit was created.
AB899,4,3
1(c) Except as otherwise provided in this subsection, the commission shall
2subject the filing and approval of value of solar tariffs to the same procedural
3requirements that the commission applies to tariffs offering net metering.
AB899,4,104
(d) If a solar facility located at the premises of a retail customer of an electric
5utility is eligible for net metering offered by the electric utility, the retail customer
6shall have the option of accepting net metering or requiring the electric utility to
7purchase electricity generated by the solar facility under the electric utility's value
8of solar tariff. The commission shall ensure that value of solar tariffs and tariffs
9offering net metering allow retail customers to exercise that option on a periodic
10basis.
AB899,3
11Section
3. 196.378 (4m) (a) of the statutes is amended to read:
AB899,4,1912
196.378
(4m) (a) The commission may not impose on an electric provider any
13requirement that increases the electric provider's renewable energy percentage
14beyond that required under sub. (2) (a) 2. If an electric provider is in compliance with
15the requirements of sub. (2) (a) 2., the commission may not require the electric
16provider to undertake, administer, or fund any other renewable energy program.
17This paragraph does not limit the authority of the commission to enforce an electric
18provider's obligations under s. 196.374
or to require the filing of value of solar tariffs
19under sub. (4j) (b).
