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 Advanced Renewable Tariffs

“Feed-In” Tariffs (Wis. Stat. 196.379; Section 208; pp. 115-118)

  • Definitions
    • “Large electric utility” means an electric utility that had retail electric sales in 2008 of 2,500,000 megawatt hours or more.
    • “Renewable energy” means electricity derived from a renewable facility.
    • “Renewable facility” means an electric generating facility that is a small−scale facility, as determined by the PSC, and that derives energy from any of the following:
      • Photovoltaic energy
      • Wind power
      • Gas made from a renewable resource
      • Any other renewable resource specified by the commission
    • “Small electric utility” means an electric utility that had retail electric sales in 2008 of less than 2,500,000 megawatt hours
  • Purpose
    • The purpose of this section is to maximize the development and deployment of distributed renewable energy generation technologies used at renewable facilities without unreasonable impacts on electric utility rates.
  • Orders
    • Except as provided below, the PSC shall issue an individual order directed to each electric utility requiring an electric utility to offer to purchase, under standard purchase terms and other conditions specified in the order, the renewable energy generated at renewable facilities within the electric utility’s service territory that are constructed after the effective date of the order.
  • Exemptions
    • Small electric utilities
      • In an order directed to a small electric utility, the commission may provide that the small electric utility is not required to purchase renewable energy generated at particular types of renewable facilities specified in the order.
    • Large electric utilities
      • If the PSC finds that a large electric utility’s voluntary initiatives are consistent with the purpose of this section, the PSC may do any of the following:
        • Exempt the large electric utility from the requirement.
        • In an order directed to the large electric utility, provide that the large electric utility is not required to purchase renewable energy generated at particular types of renewable facilities specified in the order.
  • Agreements
    • Notwithstanding the above requirements, an electric utility may purchase renewable energy generated at a renewable facility under terms and conditions that differ from those specified in an order directed at the electric utility if the electric utility and owner or operator of the renewable facility mutually agree to the terms and conditions.
  • Standard Purchase Terms
    • An order directed to an electric utility shall specify the standard purchase terms that apply for each type of renewable facility, including terms for all of the following:
      • The price paid for renewable energy, based on the commission’s consideration of all of the following:
        • The cost of producing renewable energy at the type of renewable facility.
        • A reasonable rate of return on investment for the type of renewable facility.
        • State and federal financial incentives, including production tax credits, that are available to owners or operators of the type of renewable facility.
    • A schedule of payments for the renewable energy over a sufficient period of time to allow for recovery of the construction and operation costs for the type of renewable facility.
    • A maximum limit on the generating capacity for the type of renewable facility.
  • Other conditions
    • An order directed to an electric utility may include any of the following conditions:
      • Requirements for adjusting the standard purchase terms based on changes in operating costs for a type of renewable facility.
      • Different prices for renewable energy generated at renewable facilities of the same type that have different generating capacities.
      • Other conditions specified by the PSC.
  • Standardized agreements
    • An order directed to an electric utility shall prescribe for each type of renewable facility a standardized agreement that includes the standard purchase terms and other conditions applicable to the electric utility’s purchase of renewable energy from owners or operators of the type of renewable facility.
  • Purchase limits
    • The commission may limit the requirement of an electric utility to purchase renewable energy under an order if the commission finds that the limit is consistent with the purpose of this section. The commission may base the limit on any of the following:
      • The number of renewable facilities from which the electric utility must purchase renewable energy.
      • The total installed generating capacity of the renewable facilities from which the electric utility must purchase renewable energy.
      • The total amount of renewable energy that the electric utility must purchase.
  • Reviews
    • The commission shall periodically review its orders and, as appropriate, revise the standardized agreements prescribed in the orders to change the standard purchase terms and other conditions. A revision under this subsection does not apply to a standardized agreement entered into by an electric utility and an owner or operator of a renewable facility before the effective date of the revision.
  • Renewable Resource Credits
    • An electric utility that purchases renewable energy under an order acquires, in addition to the renewable energy, the renewable resource credits associated with the generation of the renewable energy.