An Act to amend 196.491 (4) (b) 2.; to create 196.20 (10), 196.491 (3) (L) and 196.491 (4) (b) 3. of the statutes; Relating to: prohibiting recovery of a rate of return on retired electric generating facilities; an exemption from certificate requirements for constructing a large electric generating facility; and a permit dashboard for applications for certificates of public convenience and necessity. (FE)
Summary
AB1167 makes three main changes to Wisconsin utility and energy facility law. First, it prohibits an electric public utility from recovering in rates any amount attributable to the rate of return on equity for a retired electric generating facility. In practical terms, this would prevent utilities from charging customers for an equity return on plants that are no longer operating.
Second, the bill expands an existing exemption from the Public Service Commission’s certificate of public convenience and necessity (CPCN) requirement for large electric generating facilities. Under current law, the exemption applies when at least 70% of a facility’s output is used on-site for manufacturing or ferrous mineral mining. AB1167 would broaden that exemption to include nonresidential on-site use more generally, so long as the person demonstrates that at least 70% of daily output will be consumed on site and, if the facility connects to utility infrastructure, the applicant agrees to pay all interconnection costs. Third, the bill requires the PSC to create and maintain a public web page showing the procedural status of each CPCN application and the status of related permits or approvals from federal, state, and local governments.
Impact
The bill would amend Wisconsin statutes governing utility ratemaking and large electric generation project approvals, primarily affecting electric public utilities, project developers, and the Public Service Commission. It would bar recovery in rates of equity returns tied to retired generating assets, potentially reducing costs passed on to ratepayers and limiting utility cost recovery. It would also loosen permitting requirements for certain behind-the-meter or on-site generation projects while shifting interconnection costs to the developer, and it would add a new PSC transparency requirement through a permit-status dashboard.
Sentiment
The available record shows no committee transcript or vote data, so there is no documented floor or committee debate to gauge direct sentiment. Based on the bill’s structure, it appears aimed at both consumer protection and project facilitation: limiting utility recovery on retired assets may appeal to ratepayer advocates, while the expanded CPCN exemption and interconnection-cost provision may appeal to industrial or large on-site energy users and developers. The permit dashboard requirement suggests a broader interest in improving transparency and administrative tracking.
Contention
The likely points of contention are the same features that shift costs or regulatory burdens. Utilities may object to the prohibition on recovering a rate of return for retired generating facilities because it limits cost recovery and could affect utility finances. Conversely, developers or large energy users may support the expanded CPCN exemption, while some regulators, utilities, or local stakeholders may worry that it weakens oversight of large generation projects. The requirement that applicants pay all interconnection costs could also be debated as either a fair allocation of costs or a barrier to project development.
Crossfiled
An Act to amend 196.491 (4) (b) 2.; to create 196.20 (10), 196.491 (3) (L) and 196.491 (4) (b) 3. of the statutes; Relating to: prohibiting recovery of a rate of return on retired electric generating facilities; an exemption from certificate requirements for constructing a large electric generating facility; and a permit dashboard for applications for certificates of public convenience and necessity. (FE)