(1) DEFINITIONS. In this section: (bm) “Commission” means the public service commission. (c) “Commitment to community program” means a program by or on behalf of a municipal utility or retail electric cooperative for low-income assistance. (f) “Electric provider” means an electric utility or retail electric cooperative. (g) “Electric utility” means a public utility that owns or operates a retail electric distribution system. (gr) “Federal assistance” means, for a fiscal year, all moneys received from the federal government under 42 USC 6861 to 6873 and 42 USC 8621 to 8629 in the fiscal year. (i) “Fiscal year” has the meaning given in s. 655.001 (6). (k) “Local unit of government” means the governing body of any county, city, town, village or county utility district or the elected tribal governing body of a federally recognized American Indian tribe or band. (L) “Low-income assistance” means assistance to low-income households for weatherization and other energy conservation services, payment of energy bills or early identification or prevention of energy crises. (m) “Low-income household” means any individual or group of individuals in this state who are living together as one economic unit and for whom residential electricity is customarily purchased in common or who make undesignated payments for electricity in the form of rent, and whose household income is not more than 60 percent of the statewide median household income. (n) “Low-income need” means the amount obtained by subtracting from the total low-income energy bills in a fiscal year the product of 2.2 percent of the estimated average annual income of low-income households in this state in that fiscal year multiplied by the estimated number of low-income households in this state in that fiscal year. (o) “Low-income need percentage” means the percentage that results from dividing the sum of the following by the amount of low-income need in fiscal year 1998-99: 1. The federal assistance in fiscal year 1997-98. 1m. The amount of the portion of the public benefits fee for fiscal year 1999-2000 that is specified in s. 16.957 (4) (c) 1., 1999 stats. 2. The total amount expended by utilities under s. 196.374, 2003 stats., related to low-income assistance. 3. Fifty percent of the amount of public benefits fees that municipal utilities and retail electric cooperatives were required to charge under s. 16.957 (5) (a), 1999 stats., in fiscal year 19992000. (p) “Low-income need target” means the product of the lowincome need percentage multiplied by low-income need in a fiscal year. (q) “Municipal utility” means an electric utility that is owned wholly by a municipality and that owns a retail distribution system. (qm) “Public utility” has the meaning given in s. 196.01 (5). (s) “Retail capacity” means the total amount of electricity that an electric provider is capable of delivering to its retail customers or members and that is supplied by electric generating facilities owned or operated by the electric provider or any other person. “Retail capacity” does not include any electricity that is not used to satisfy the electric provider’s retail load obligations. (t) “Retail electric cooperative” means a cooperative association that is organized under ch. 185 for the purpose of providing electricity at retail to its members only and that owns or operates a retail electric distribution system. (u) “Total low-income energy bills” means the total estimated amount that all low-income households are billed for residential electricity, natural gas and heating fuel in a fiscal year. (v) “Wholesale electric cooperative” means a cooperative association that is organized under ch. 185 for the purpose of providing electricity at wholesale to its members only. (w) “Wholesale supplier” means a wholesale electric cooperative or a municipal electric company, as defined in s. 66.0825 (3) (d), that supplies electricity at wholesale to a municipal utility or retail electric cooperative. (x) “Wholesale supply percentage” means the percentage of the electricity sold by a wholesale supplier that is purchased by a municipal utility or retail electric cooperative. (2) DEPARTMENT DUTIES. The department shall do all of the following: (a) Low-income programs. After holding a hearing, establish programs to be administered by the department for awarding grants from the appropriation under s. 20.505 (3) (r) to provide low-income assistance. In each fiscal year, the amount awarded under this paragraph shall be sufficient to ensure that an amount equal to 50 percent of the sum of the following is allocated for weatherization and other energy conservation services: 2. All moneys spent in a fiscal year for low-income programs established under s. 196.374, 2003 stats. 3. The moneys collected in low-income assistance fees under sub. (4) (a). 4. The moneys collected in low-income assistance fees under sub. (5) (a). (c) Rules. Promulgate rules establishing all of the following: 1. Eligibility requirements for low-income assistance under programs established under par. (a). The rules shall prohibit a person who receives low-income assistance from a municipal utility or retail electric cooperative under a program specified in sub. (5) (b) 1. from receiving low-income assistance under programs established under par. (a). 2. Requirements and procedures for applications for grants awarded under programs established under par. (a). 5. A method for estimating total low-income energy bills, average annual income of low-income households and the number of low-income households in a fiscal year for the purpose of determining the amount of low-income need in the fiscal year. (d) Other duties. 1. For each fiscal year, determine the lowincome need target for that fiscal year. 3. Deposit all moneys received under sub. (4) (a) or (5) (b) 2. in the utility public benefits fund. 4. Provide for an annual independent audit and submit an annual report to the legislature under s. 13.172 (2) that describes each of the following: a. The expenses of the department, other state agencies, and grant recipients in administering or participating in the programs under par. (a). b. The effectiveness of the programs under par. (a) in providing assistance to low-income individuals. d. Any other issue identified by the department, governor, speaker of the assembly or majority leader of the senate. (3) CONTRACTS. The department shall, on the basis of competitive bids, contract with community action agencies described in s. 49.265 (2) (a) 1., nonstock, nonprofit corporations organized under ch. 181, or local units of government to provide services under the programs established under sub. (2) (a). (4) ELECTRIC UTILITIES. (a) Requirement to charge low-income assistance fees. Each electric utility, except for a municipal utility, shall charge each customer a low-income assistance fee in an amount established in rules promulgated by the department under par. (b). An electric utility, except for a municipal utility, shall collect and pay the fees to the department in accordance with the rules promulgated under par. (b). The low-income assistance fees collected by an electric utility shall be considered trust funds of the department and not income of the electric utility. (am) Electric bills. An electric utility shall show the low-income assistance fee as a separate line in a customer’s bill, identified as the “state low-income assistance fee,” and shall provide the customer with an annual statement that identifies the annual charges for low-income assistance fees and describes the programs for which fees are used. (b) Rules. The department shall promulgate rules that establish the amount of a low-income assistance fee under par. (a). Fees established in rules under this paragraph may vary by class of customer, but shall be uniform within each class, and shall satisfy each of the following: 1. The fees may not be based on the kilowatt-hour consumption of electricity by customers. 2. Seventy percent of the total amount of fees charged by an electric provider may be charged to residential customers and 30 percent of the total may be charged to nonresidential customers. 3. The fees shall allow an electric provider to recover the reasonable and prudent expenses incurred by the electric provider in complying with this section. (c) Amount of low-income assistance fees. A fee established in rules promulgated under par. (b) shall satisfy each of the following: 1. ‘Low-income funding from fee.’ In each fiscal year, the low-income assistance fee shall be an amount that, when added to the sum of the following shall equal the low-income need target for that fiscal year determined by the department under sub. (2) (d) 1.: a. The estimated low-income assistance fees charged by municipal utilities and retail electric cooperatives under sub. (5) (a) for that fiscal year. b. The federal assistance for that fiscal year. c. The total amount spent on programs by utilities under s. 196.374 (3) , 2003 stats., for that fiscal year for low-income assistance. 3. ‘Limitation on low-income assistance fees.’ In any month, the low-income assistance fee may not exceed 3 percent of the total of every other charge for which the customer is billed for that month or $750, whichever is less. (5) MUNICIPAL UTILITIES AND RETAIL ELECTRIC COOPERATIVES. (a) Requirement to charge low-income assistance fees. Each retail electric cooperative and municipal utility shall charge a monthly low-income assistance fee to each customer or member in an amount that is sufficient for the retail electric cooperative or municipal utility to collect an annual average of $8 per meter. A retail electric cooperative or municipal utility may determine the amount that a particular class of customers or members is required to pay under this paragraph and may charge different fees to different classes of customers or members. (am) Low-income assistance fee restriction. Notwithstanding par. (a), in any month, the low-income assistance fee may not exceed 1.5 percent of the total of every other charge for which the member or customer is billed for that month or $375, whichever is less. (b) Commitment to community programs. 1. Except as provided in subd. 2., each retail electric cooperative and municipal utility shall spend on commitment to community programs the fees that the cooperative or utility charges under par. (a). 2. No later than October 1, 2007, and no later than every 3rd year after that date, each municipal utility or retail electric cooperative shall notify the department whether the utility or cooperative has elected to contribute the fees that the utility or cooperative charges under par. (a) to the programs established under sub. (2) (a) in each year of the 3-year period for which the utility or cooperative has made the election. If a municipal utility or retail electric cooperative elects to contribute to the programs established under sub. (2) (a), the utility or cooperative shall pay the low-income assistance fees that the utility or cooperative collects under par. (a) to the department in each year of the 3-year period for which the utility or cooperative has made the election. (e) Wholesale supplier credit. If a wholesale supplier has established a commitment to community program, a municipal utility or retail electric cooperative that is a customer or member of the wholesale supplier may include an amount equal to the product of the municipal utility’s or retail electric cooperative’s wholesale supply percentage and the amount that the wholesale supplier has spent on the commitment to community program in a year in calculating the amount that the municipal utility or retail electric cooperative has spent on commitment to community programs in that year under par. (b) 1. (f) Joint programs. Municipal utilities or retail electric cooperatives may establish joint commitment to community programs, except that each municipal utility or retail electric cooperative that participates in a joint program is required to comply with the spending requirements under par. (b) 1. (g) Reports. 1. Annually, each municipal utility and retail electric cooperative that spends the low-income assistance fees that the utility or cooperative charges under par. (a) on commitment to community programs under par. (b) 1. shall provide for an independent audit of its programs and submit a report to the department that describes each of the following: a. An accounting of low-income assistance fees charged to customers or members under par. (a) in the year and expenditures on commitment to community programs under par. (b) 1., including any amounts included in the municipal utility’s or retail electric cooperative’s calculations under par. (e). b. A description of commitment to community programs established by the municipal utility or retail electric cooperative in the year. 2. The department shall require that municipal utilities and retail electric cooperatives file reports under subd. 1. electronically, in a format that allows for tabulation, comparison, and other analysis of the reports. The department shall maintain reports filed under subd. 1. for at least 6 years.
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