Wisconsin Code § 196.49

Authorization from commission before transacting business; extensions and improvements to be approved; enforcement of orders; natural gas
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(1) (am)
Except as provided in s. 196.50 (1) (am) , no public utility not
legally engaged in performing a utility service on August 1, 1931,
in any municipality may commence the construction of any public utility plant, extension or facility, or render service in such
municipality directly, or indirectly by serving any other public
utility or agency engaged in public utility service or otherwise,
unless the public utility has obtained a certificate from the commission authorizing it to transact public utility business.
(b) This subsection applies only to a public utility which was
not legally engaged in performing a public utility service on August 1, 1931, in a municipality and which proposes to commence
construction or render service in the municipality. If there is a
public utility engaged in similar service in operation under an indeterminate permit in the municipality, ss. 196.495 and 196.50
apply.
(2) No public utility may begin the construction, installation
or operation of any new plant, equipment, property or facility, nor
the construction or installation of any extension, improvement or
addition to its existing plant, equipment, property, apparatus or
facilities unless the public utility has complied with any applicable rule or order of the commission. If a cooperative association
has been incorporated under ch. 185 for the production, transmission, delivery or furnishing of light or power and has filed with
the commission a map of the territory to be served by the association and a statement showing that a majority of the prospective
consumers in the area are included in the project, no public utility
may begin any such construction, installation or operation within
the territory until after the expiration of 6 months from the date
of filing the map and notice. If the cooperative association has
entered into a loan agreement with any federal agency for the financing of its proposed system and has given written notice of the
agreement to the commission, no public utility may begin any
construction, installation or operation within the territory until
12 months after the date of the loan agreement.
(3) (a) In this subsection, “project” means construction of
any new plant, equipment, property or facility, or extension, improvement or addition to its existing plant, equipment, property,
apparatus or facilities. The commission may require by rule or
special order that a public utility submit, periodically or at such
times as the commission specifies and in such detail as the commission requires, plans, specifications and estimated costs of any
proposed project which the commission finds will materially affect the public interest.
(b) The commission may require by rule or special order under par. (a) that no project may proceed until the commission has
certified that public convenience and necessity require the
project. The commission may refuse to certify a project if it appears that the completion of the project will do any of the
following:
1. Substantially impair the efficiency of the service of the
public utility.
2. Provide facilities unreasonably in excess of the probable
future requirements.
3. When placed in operation, add to the cost of service without proportionately increasing the value or available quantity of
service unless the public utility waives consideration by the commission, in the fixation of rates, of such consequent increase of
cost of service.
(c) The commission may issue a certificate for the project or
for any part of the project which complies with the requirements
of this section, or the commission may attach to the issuance of
its certificate such terms and conditions as will ensure that the
project meets the requirements of this section. The issuance of a
certificate under this section shall not be a condition precedent to
the exercise of eminent domain under ch. 32.
(4) The commission may not issue a certificate under sub.
(1), (2), or (3) for the construction of electric generating equipment and associated facilities unless the commission determines
that brownfields, as defined in s. 238.13 (1) (a) or s. 560.13 (1)
(a), 2009 stats., are used to the extent practicable.
(5) (a) No public utility furnishing gas to the public in this
state may construct, install or place in operation any new plant,
equipment, property or facility, or construct or install any extension, improvement, addition or alteration to its existing plant,
equipment, property or facilities for the purpose of connecting its
properties and system to a source of supply of gaseous fuel for
sale to the public which is different from that which has been sold
previously, or for the purpose of adapting its facilities to use the

different kind of gaseous fuel unless the commission certifies
that the general public interest and public convenience and necessity require the connection to or use of the different fuel. No public utility may substitute natural gas or a mixture of natural and
manufactured gas in lieu of manufactured gas for distribution and
sale to the public unless it has obtained from the commission a
certificate that the general public interest and public convenience
and necessity require the substitution.
(b) Proceedings for a certificate under par. (a) shall be commenced by petition to the commission in a form prescribed by the
commission, furnishing such information as the commission by
rule or order prescribes. The commission shall prescribe the
form of notice, to whom the notice shall be given, and how notice
shall be given.
(c) A petition under par. (b) may include one or more municipalities, may be made by one or more public utilities as a joint petition, by any other interested person or by a public utility and any
other interested person. The commission may direct the consolidation, separation or consideration of separate petitions as it
deems necessary or expedient to a prompt hearing and disposition of the issue.
(d) Upon the filing of a petition under par. (b), notice of hearing on the petition shall be given by the person filing the petition
by publication of a class 2 notice, under ch. 985, or by mailing or
personal service, as the commission directs by the order under
par. (b). Notice under this paragraph shall be given at least 2
weeks prior to hearing on the petition. Proof of notice shall be
filed as directed by the commission.
(e) The commission, with or without an order, prior to or during any hearing under this subsection, may frame and prescribe
special issues and limit the issues or the nature and extent of
proof so as to avoid unnecessary duplication. The commission,
with or without an order, may proceed with the hearing as to part
of a petition under par. (b) as it may find desirable to a full but
speedy hearing upon the petition.
(f) The commission may accept as presumptive evidence in a
commission proceeding the facts found in findings and orders of
the federal energy regulatory commission or any federal agency
having jurisdiction as to the availability of adequate supplies of
natural gas, the adequacy or sufficiency of equipment and facilities to be employed in the delivery or storage of natural gas for
any public utility, and any similar findings or determinations affecting the seller or person furnishing natural gas to any public
utility and material to the ultimate determination of the issues in
the proceeding. The commission may accept and take judicial
notice of its own files and records, including all proceedings and
the evidence therein which it finds to be material and relevant.
The commission shall give notice of the taking of judicial notice
under this paragraph prior to the conclusion of final hearings
upon any proceeding so as to give interested parties the right to
object to acceptance of the evidence or to contradict the evidence
by other competent evidence.
(g) A certificate granted under par. (a) shall be authorized by
an order following a hearing. The order shall contain any condition or limitation which the commission deems necessary or
practicable, including, but not limited to, exceptions or regulations as to specific communities or public utilities, provision for
protection of employees under existing labor contracts, as well as
other employees, so as to avoid unemployment, regulations for
accounting for expenses for change-over to the use of natural gas
where necessary and to the extent necessary, provision for amortization of any expenditure or other items, and any other regulation, condition and limitation which the commission considers
necessary in the public interest.
(h) The commission by order may extend a certificate under
par. (a) to more than one public utility or municipality. The commission may prescribe different conditions and regulations for
each public utility or municipality if the commission deems the
different conditions and regulations necessary to carry out the
purposes of this section.
(i) In making a determination under this section, the commission shall consider all appropriate factors affecting the public interest, including, but not limited to, when the substitution of natural or a mixture of natural and manufactured gas is involved, the
likelihood of substantial rate reduction from the substitution and
the effect of the substitution upon employment, existing business
and industries, railroads and other transportation agencies and facilities, upon conveniences, economies and savings to consumers,
upon existing gas utilities and their ability to continue to serve the
public and upon the state, any of its political subdivisions or any
citizen or resident of the state.
(5g) (ag) In this subsection, “rebuild” means the replacement of all or part of an existing electric transmission line and associated facilities, including conductors, insulators, transformers,
or structures, for operation at the same voltage.
(ar) A public utility is exempt from the requirement to obtain
a certification or approval of the commission under sub. (2) or (3)
before beginning a proposed project if any of the following
applies:
1m. The estimated gross cost of the proposed project is not
more than one of the following cost thresholds:
a. For an electric public utility whose electric operating revenues in the prior year were less than $5,000,000, the cost threshold is $250,000.
b. For an electric public utility whose electric operating revenues in the prior year were $5,000,000 or more and less than
$250,000,000, the cost threshold is 4 percent of those operating
revenues.
c. For an electric public utility whose electric operating revenues in the prior year were $250,000,000 or more, the cost
threshold is $10,000,000.
d. For a natural gas public utility, the cost threshold is
$5,000,000 or 4 percent of the public utility’s natural gas operating revenues in the prior year, whichever is less.
e. For a water public utility or combined water and sewer
public utility, the cost threshold is $250,000 or 25 percent of the
utility’s operating revenues in the prior year, whichever is less.
1s. The project is to be completed by a water public utility, a
combined water and sewer public utility, or an entity contracted
by a water public utility or a combined water and sewer public
utility and is for the purpose of installing, repairing, or replacing
meters to measure service to customers.
2m. The project is a rebuild and all of the following apply:
a. The existing electric transmission line and associated facilities are designed for operation at a nominal voltage of less
than 345 kilovolts.
b. Not more than one-half mile of the centerline of the rebuilt
electric transmission line is located more than 60 feet on either
side of the centerline of an existing electric transmission line operating at a nominal voltage of 69 kilovolts or more. In this subd.
2m. b., “centerline” has the meaning given in s. 196.491 (4) (c)
1e.
c. The project requires the acquisition in total of one-half
mile or less of rights-of-way from landowners from which rightsof-way would not be required to be acquired for the existing electric transmission line specified in subd. 2m. b.
d. The project will not have undue adverse environmental
impacts on any new rights-of-way required for the rebuild.
3. The project is primarily to provide service to a new cus-

tomer within an electronics and information technology manufacturing zone designated under s. 238.396 (1m).
(b) Beginning on May 1, 2014, and on May 1 of each successive even-numbered year thereafter, the commission shall adjust
the cost thresholds specified in par. (ar) 1m. to reflect changes to
the cost of utility construction based on the applicable industry
cost index numbers published in the Handy-Whitman Index of
Public Utility Construction Costs, or an equivalent successor index, and publicize the adjusted cost thresholds on the commission’s website.
(5r) (am) If a hearing is held on an application filed under
sub. (1), (2), (3), or (5), the commission shall take final action on
the application within 180 days after the commission issues a notice of hearing on the application. The chairperson of the commission may extend the time period for an additional 180 days for
good cause. If the commission fails to take final action within the
initial 180-day period, or the extended 180-day time period, the
commission is considered to have issued a certificate of authority
with respect to the application.
(b) If a hearing is not held on an application filed under sub.
(1), (2), (3), or (5), the commission shall take final action on the
application within 90 days after the commission issues a notice
opening a docket on the application. The chairperson of the commission may extend the time period for an additional 90 days for
good cause. If the commission fails to take final action within the
initial 90-day period, or the extended 90-day time period, the
commission is considered to have issued a certificate of authority
with respect to the application.
(c) 1. With respect to an application for a certificate or approval for construction required under this section and filed by a
water public utility or a combined water and sewer public utility,
the commission shall determine whether the application is complete and, no later than 45 days after the application is filed the
first time and no later than 30 days after the application is refiled
a 2nd or subsequent time, notify the applicant in writing about
the determination. If the commission determines that the application is incomplete, the notice shall identify all parts of the application the commission has determined to be incomplete and
state the reasons for the determination. An applicant may supplement and refile an application that the commission has determined to be incomplete. There is no limit on the number of times
that an applicant may refile an application under this paragraph.
If the commission fails to determine whether an application is
complete within 45 days after the application is filed or 30 days
after the application is refiled, the application shall be considered
to be complete.
2. If a hearing is held on an application under subd. 1., the
commission shall take final action on the application within 180
days after the application is determined to be complete. The
chairperson of the commission may extend the time period for an
additional 180 days for good cause. If the commission fails to
take final action within the initial 180-day period, or the extended
180-day time period, the commission is considered to have issued
the certificate or approval for construction with respect to the
application.
3. If a hearing is not held on an application under subd. 1.,
the commission shall take final action on the application within
90 days after the application is determined to be complete. The
chairperson of the commission may extend the time period for an
additional 90 days for good cause. If the commission fails to take
final action within the initial 90-day period, or the extended 90day time period, the commission is considered to have issued the
certificate or approval for construction with respect to the
application.
(6) If the commission finds that any public utility has taken or
is about to take an action which violates or disregards a rule or
special order under this section, the commission, in its own name
either before or after investigation or public hearing and either
before or after issuing any additional orders or directions it deems
proper, may bring an action in the circuit court of Dane County to
enjoin the action. If necessary to preserve the existing state of affairs, the court may issue a temporary injunction pending a hearing upon the merits. An appeal from an order or judgment of the
circuit court may be taken to the court of appeals.

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