Section 116.01. Definitions.

  In this chapter:

(1)  "Annual fuel cost" means actual fuel cost over a plan year.

(2)  "Annual native system requirement" means the native system requirement in megawatthours over a plan year.

(3)  "Associated transmission service" means the cost of transmission service incurred outside a utility's transmission organization, but not any cost associated with a purchased power contract the utility uses to meet its planning reserve requirement.

(4)  "Average annual fuel cost" means the annual fuel cost divided by the annual native system requirement.

(5)  "Capacity" means the continuous load–carrying ability of electric generation expressed in megawatts.

(6)  "Commission" means the public service commission.

(7)  "Energy" means the amount of electric generation over a period of time, expressed in megawatthours.

(8)  "Energy market purchase" means the cost of purchasing energy or capacity, or both, used to supply electricity to a customer served by the utility. The cost includes marginal energy price, associated transmission service and transmission losses and congestion. The cost excludes capacity or associated transmission service purchased to satisfy a utility's planning reserve margin, as defined in s. PSC 117.03 (16) .

(9)  "Energy market sale" means an opportunity sale, as defined in s. PSC 117.03 (14) , whether it is an in-state or out-of-state sale. The revenue from an energy market sale includes marginal energy prices, transmission loss, congestion, associated transmission service, and any other revenue resulting from the sale.

(10)  "Excess revenues" means revenues in the plan year that provide a utility with a greater return on common equity than authorized by the commission. For the plan year, the following costs and revenues are not included in the calculation of actual return on common equity for the utility:

(a) Charitable contributions and other donations not related to providing utility service.

(b) Penalties.

(c) Costs of political and related activities.

(d) Promotional advertising.

(e) Earnings or losses from the operation of non-utility assets and gains or losses on the sale of non-utility assets.

(f) Imprudently incurred fuel costs.

(g) Earnings, dividends, or distributions from any ownership interest that a utility may hold in a transmission company, as defined in s. 196.485 (1) (ge) , Stats., and any gains or profits a utility may receive from the sale or other disposition of securities issued by a transmission company.

(11)  "Fuel" means all of the following used to generate electricity:

(a) Coal.

(b) Natural gas.

(c) Nuclear fuel.

(d) Oil.

(e) Any other type of material converted to electric energy, including biomass.

(12)  "Native system requirement" means the actual energy sold to customers, energy used by the utility, and line losses. In this subsection, "line losses" means the loss of energy in the operation of an electric system primarily attributable to the energy's transformation to waste heat in electric conductors and apparatus. "Native system requirement" does not include energy market sales.

(13)  "Plan year" means the 12-month period identified in a fuel cost plan.

(14)  "Transmission organization" means a transmission organization, as defined in 18 CFR 39.1 (in effect on March 1, 2011, that is used by a utility to serve Wisconsin retail customers.