Section 112.05. Construction of electric utility facilities.

 

(1)  No electric utility may begin construction, install or place in operation any of the following facilities whose estimated gross cost exceeds the applicable amount specified in sub. (3) , without prior commission approval under s. PSC 112.07 :

(a) A generating plant or unit.

(b) A replacement, modification or addition at a generating plant. This paragraph applies to projects or combinations of projects where the same replacement, modification or addition is known to be required at more than one unit at the same plant over a reasonably short period of time and the total cost of the combined work exceeds the applicable amount specified in sub. (3) . This paragraph also applies to the initial construction of major new waste disposal facilities for the plant, even if not located at or adjacent to the existing plant site. This paragraph does not apply to replacements, modifications or repairs to a hydroelectric dam or related civil works to comply with dam safety or similar regulatory requirements, if the capacity or operation of the generating facilities is not significantly changed.

(c) A project for constructing or rebuilding a transmission line, including necessary terminations and related new substation or substation additions. This paragraph does not apply to the relocation or modification of a segment of an existing transmission line, if the utility is ordered to relocate or modify the line to accommodate highway or airport construction, nor to the reconstruction or restoration of a segment of an existing transmission line made necessary by storm damage.

(d) A new substation or switching station.

(e) An addition to or replacement at an existing substation or switching station.

(f) A distribution system extension, conversion to a higher voltage or conversion from overhead to underground construction.

(g) A new building or any addition to or remodeling of an existing building. This paragraph applies to the purchase of an existing building by a utility for conversion to utility use.

(1m)  

(a) No public utility may begin a project to construct or rebuild a transmission line whose length exceeds 10 miles and whose cost is less than the applicable amount specified in sub. (3) without first filing a report under par. (b) and securing commission approval under par. (c) . The report and commission approval are not required for projects entirely within existing electric utility transmission line right of way.

(b) The utility shall file the report required under this subsection at least 90 days before it intends to begin construction or rebuilding. The report shall include a description of the project, its location and proposed route or routes, the estimated cost and a discussion of the need for the project.

(c) After reviewing the report, the commission may do any of the following:

1. Approve the project by acknowledging, in writing, receipt of the report and accepting it for filing.

2. Direct, in writing, that the project shall not proceed until specific approval is granted under s. 196.49 , Stats.

3. Approve the project by taking no action within 90 days of receiving the utility's written report.

(d) This subsection does not apply to a project that requires a certificate of public convenience and necessity under s. 196.491 (3) , Stats.

(2)  A Wisconsin electric utility proposing to construct, install or place in operation any of the utility facilities listed in sub. (1) in another state in which it serves shall notify the commission at least 60 days before beginning construction. The notification shall include a description of the project, its location, the estimated cost, a discussion of need, permits or approvals required by the other state or local governments, and the approximate jurisdictional allocation of the cost between Wisconsin and the other state. Notwithstanding sub. (3) , if a significant portion of the cost of the project will be allocated to Wisconsin for ratemaking purposes, the commission may require that the utility submit an application under s. PSC 112.06 , for commission authorization prior to construction, installation or operation.

(3)  

(a) Cost thresholds for projects requiring commission review and approval under this section are those specified in s. 196.49 (5g) (a) , Stats., as revised under par. (b) .

(b) Beginning on May 1, 2014, and on May 1 of each successive even-numbered year thereafter, the commission shall adjust the cost thresholds in s. 196.49 (5g) (a) , Stats., to reflect changes to the cost of electric utility construction based on the cost index numbers published in the "Handy-Whitman Index of Public Utility Construction Costs, Cost Trends of Electric Utility Construction — North Central Region for Total Transmission Plant".

(c) The commission shall notify all electric utilities of the resulting adjusted cost limits by May 15 of each even-numbered year and shall publicize the adjusted cost limits on the commission's website. If the Handy-Whitman Index is no longer available, an equivalent successor index may be used which is generally recognized by the electric industry and acceptable to the commission.

History: Cr. Register, November, 1995, No. 479 , eff. 12-1-95; am. (1m) (a), (2) and (3), Register, October, 1998, No. 514 , eff. 11-1-98; CR 14-053 : renum. (3) (a) (intro.) to (3) (a) and am., r. (3) (a) 1. to 3., am. (3) (b), cr. (3) (c) Register April 2015 No. 712 , eff. 5-1-15.

Note

The commission maintains or has access to the Handy-Whitman Index of Public Utility Construction Costs and this reference or a copy may be reviewed by contacting the commission's offices. Microsoft Windows NT 6.1.7601 Service Pack 1