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Wisconsin Legislature: SB1152: Bill Text
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SB1152: Bill Text
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2025 - 2026 LEGISLATURE
LRB-6533/1
KP:ads
2025 SENATE BILL 1152
March 19, 2026 - Introduced by Senators
Carpenter
and
Spreitzer
, cosponsored by Representative
Clancy
. Referred to Committee on Utilities, Technology and Tourism.
SB1152,1,5
1
An Act
to amend
196.027 (1) (f), 196.027 (3) (title), 196.027 (3) (b) and 196.491
2
(3) (d) (intro.);
to create
196.027 (1) (d) 3., 196.027 (3) (c) and 196.491 (3) (ds)
3
of the statutes;
relating to:
requirements for granting a certificate for certain
4
electric facilities and use of environmental trust bonds to finance the costs of
5
retiring electric facilities.
Analysis by the Legislative Reference Bureau
This bill requires the Public Service Commission to, in taking action on an application by a public utility for a certificate of public convenience and necessity (CPCN), determine whether a proposed electric facility will primarily serve the load of a very large customer. If PSC determines that an electric facility proposed by a public utility will primarily serve the load of a very large customer, PSC must reject the application for a CPCN unless PSC orders or requires the public utility to use environmental trust financing for the unrecovered value of the facility if the facility is retired before the full value of the facility is recovered. Under current law, a person seeking to construct a large electric generating facility having a nominal capacity of 100 megawatts or more or a high-voltage transmission line must obtain a CPCN from PSC. Also, current law allows an energy utility to use environmental trust financing by applying to PSC for an order allowing the utility to finance certain costs by issuing bonds. If approved by PSC, the bonds are secured by revenues arising from charges paid by an energy utility’s customers for the utility to recover the cost of the activities and the cost of financing the bonds.
The bill also authorizes PSC to order or require an energy utility to use environmental trust bonds to finance the retirement of an electric facility if the facility is retired before the full value of the facility is recovered and if the commission determines that the order or requirement is in the public interest. Current law prohibits PSC from ordering or requiring an energy utility to use environmental trust bonds to finance any expenditures of the energy utility. The bill also adds the retiring of an existing electric facility as an activity that may be financed by an environmental trust bond. Under current law, environmental trust bonds may be used only to finance the following costs: 1) the construction, installation, or otherwise putting into place of environmental control equipment in connection with a plant that, before March 30, 2004, has been used to provide service to customers and 2) the retiring of an existing plant, facility, or other property to reduce, control, or eliminate environmental pollution in accordance with federal or state law.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SB1152,1
1
Section
1
.
196.027 (1) (d) 3. of the statutes is created to read:
SB1152,2,3
2
196.027
(1)
(d) 3. The retiring of any existing facility, as defined in s. 196.491
3
(1) (e).
SB1152,2
4
Section
2
.
196.027 (1) (f) of the statutes is amended to read:
SB1152,2,13
5
196.027
(1)
(f) “Environmental control cost” means capital cost, including
6
capitalized cost relating to regulatory assets, incurred or expected to be incurred by
7
an energy utility in undertaking an environmental control activity and, with
8
respect to an environmental control activity described in par. (d) 2.
or 3.
, includes
9
the unrecovered value of property that is retired, including any demolition or
10
similar cost that exceeds the salvage value of the property. “Environmental control
11
cost” does not include any monetary penalty, fine, or forfeiture assessed against an
12
energy utility by a government agency or court under a federal or state
13
environmental statute, rule, or regulation.
SB1152,3
1
Section
3
.
196.027 (3) (title) of the statutes is amended to read:
SB1152,3,2
2
196.027
(3)
(title)
Exceptions to commission
Commission
jurisdiction.
SB1152,4
3
Section
4
.
196.027 (3) (b) of the statutes is amended to read:
SB1152,3,13
4
196.027
(3)
(b)
The
Except as provided in par. (c), the
commission may not
5
order or otherwise directly or indirectly require an energy utility to use
6
environmental trust bonds to finance any project, addition, plant, facility,
7
extension, capital improvement, environmental control equipment,
retirement,
or
8
any other expenditure, unless, except as provided in sub. (2) (c), the energy utility
9
has made an application under sub. (2) (a) to finance such expenditure using
10
environmental trust bonds. The commission may not refuse to allow an energy
11
utility to recover costs for environmental control activities in an otherwise
12
permissible fashion solely because of the potential availability of environmental
13
trust financing.
SB1152,5
14
Section
5
.
196.027 (3) (c) of the statutes is created to read:
SB1152,3,19
15
196.027
(3)
(c) The commission may order or require an energy utility to use
16
environmental trust bonds to finance the retirement of a facility, as defined in s.
17
196.491 (1) (e), if the facility is retired before the full value of the facility is
18
recovered and if the commission determines that the order or requirement is in the
19
public interest.
SB1152,6
20
Section
6
.
196.491 (3) (d) (intro.) of the statutes is amended to read:
SB1152,3,24
21
196.491
(3)
(d) (intro.) Except as provided under
par.
pars. (ds) and
(e), the
22
commission shall approve an application filed under par. (a) 1. for a certificate of
23
public convenience and necessity only if the commission determines all of the
24
following:
SB1152,7
1
Section
7
.
196.491 (3) (ds) of the statutes is created to read:
SB1152,4,3
2
196.491
(3)
(ds) 1. In this paragraph, “very large customer” means a customer
3
of an electric public utility that has a load of at least 75 megawatts.
SB1152,4,6
4
2. The commission shall determine whether a facility proposed by a public
5
utility in an application filed under par. (a) 1. will primarily serve the load of a very
6
large customer.
SB1152,4,12
7
3. If the commission determines under subd. 2. that a facility proposed by a
8
public utility in an application filed under par. (a) 1. will primarily serve the load of
9
a very large customer, the commission shall reject the application unless the
10
commission orders or requires the public utility to obtain a financing order under s.
11
196.027 for the unrecovered value of the facility if the facility is retired before the
12
full value of the facility is recovered.
SB1152,8
13
Section
8
. Initial applicability.
SB1152,4,16
14
(
1
)
Certificates of public convenience and necessity.
The treatment of
15
s. 196.491 (3) (d) (intro.) and (ds) first applies to a certificate of public convenience
16
and necessity issued under s. 196.491 (3) on the effective date of this subsection.
SB1152,4,17
17
(end)
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