RPS Wisconsin
(Last updated November 25, 2003)

RENEWABLE PORTFOLIO STANDARDS—STATE SUMMARY
I. POLICY
II. ADMINISTRATION
III. FINANCING
IV. CRITICAL ELEMENTS
V. POLICY/PROGRAM ASSESSMENT
VI. PUBLIC OUTREACH AND EDUCATION


I. POLICY

Date Enacted
April 28, 1998 (Act 204)
October 27, 1999 (Act 9)

Effective Date
May 11, 1998 (Act 204)
October 28, 1999 (Act 9)

Time Period
December 31, 2001–December 31, 2011

Extensions to Time Period
None to date

Applicable Laws, Orders, and Regulations
Wisconsin Act 9 (1999) "Reliability 2000"

Part V-Public Benefits,
Section E
http://www.legis.state.wi.us/lc/jlc99/im99_6.pdf

Wisconsin Act 204 (1997)
http://www.legis.state.wi.us/1997/data/acts/97Act204.pdf

Wisconsin Statutes: Chapter 196—Regulation of Public Utilities

196.377 Renewable energy sources

196.378 Renewable resources
http://www.legis.state.wi.us/statutes/01Stat0196.pdf


Description
Wisconsins legislation requires a fixed 50 MW renewable capacity target for a portion of the state, as well as an RPS increasing from 0.5% in 2001 to 2.2% in 2011 that applies to all retail electricity providers.

Program Name
Renewable Portfolio Standard

Standard

(a) Capacity Requirement
Wisconsin Act 204 (1997) required regulated utilities in eastern Wisconsin to install an aggregate total of 50 MW of new renewable-based electric capacity by December 31, 2000. The share of each utility in meeting the total obligation was determined by the Public Utility Commission. This mandate has been met by the following projects:

-Rosier Wind Farm 1999—11 MW

-Lincoln Wind Farm 1999—9 MW

-Iowa County Wind Farm 2001—30 MW

(b) Generation Requirement
Wisconsin Act 9 (1999) "Reliability 2000", requires that renewable energy make up 2.2 percent of retail electric sales in Wisconsin by 2012.

Applicable Date	% of retail sales from renewable generation
December 31, 2001	0.50%
December 31, 2003	0.85%
December 31, 2005	1.20%
December 31, 2007	1.55%
December 31, 2009	1.90%
December 31, 2011	2.20%

Eligibility Date
Eligible renewable generation must have been placed in service on or after January 1, 1998.

Generation Limit
Hydroelectric facilities are limited to a capacity of less than 60 megawatts

Fuels/Technologies
Biomass

Fuel cell with renewable fuel

Geothermal technology

Hydroelectric <60 MW

Solar thermal electric

Solar photovoltaic

Tidal or wave power

Wind power

"Biomass" means a resource that derives energy from wood or plant material or residue, biological waste, crops grown for use as a resource or landfill gases. "Biomass" does not include garbage, or non-vegetation-based industrial, commercial or household waste.

Biomass co-firing is eligible under the RPS.


II. ADMINISTRATION

Administering Entities
Wisconsin Division of Energy, Department of Administration

Type of Entity
State

Administrative Contacts
Wisconsin Department of Administration
Division of Energy
P.O. Box 7868
Madison, Wisconsin 53707-7868
(608) 266-8234 Fax: (608) 267-6931
http://www.doa.state.wi.us/depb/boe

III. FINANCING

Funding Level
No funds other than those collected in the rate base or through Green Pricing are used.

Funding Source
Costs of complying with the RPS are recovered in retail electric rates.

Cost Cap
Recovered costs must be shown to have been prudently incurred by the utility in complying with the RPS requirements.

Charge
Included in rate base or through Green Pricing premiums.


IV. CRITICAL ELEMENTS

Trading
Trading of renewable resource credits (RRCs) is allowed. By February 15 of each year, every electric provider that participates in the RRC trading program by creating an RRC shall report to the program administrator the amount of renewable energy it generated or purchased, and sold at retail, from each certified renewable facility during the preceding year.

Green Pricing
Cost recovery under Green Pricing strategies is allowed.

Certification
Creation of renewable resource credits (RRCs) is provided in the legislation. Subject to commission approval, the RCC program administrator may establish any procedure necessary to ensure that the creation, sale, transfer, purchase and retirement of RRCs are accurately recorded. Fractional RRCs are allowed, but may not be smaller than 0.01 MWh

The renewable resource credit trading program is detailed in the Wisconsin Administrative Code, PSC 118: http://www.legis.state.wi.us/rsb/code/psc/psc118.pdf

Out-of-State
Out-of-state generating units can be used to satisfy WisconsinÕs renewable requirements, as long as the electricity is physically delivered to an in-state utility and sold at retail.

Self-generation
Net metering for systems up to 20 kW is available to customers of investor-owned utilities. For renewable energy facilities, the utility pays the retail rate for net excess generation. According to the PSC, generation from net-metered renewables should be eligible under the RPS as long as the generation can be tracked and verified. This would require a dual or smart metering system.

Flexibility
RCCs can be banked for future use. As currently structured, RCCs are valid as long as the RPS is in effect.


V. POLICY/PROGRAM ASSESSMENT

Reporting Requirement
No later than April 15 annually, an electric provider shall submit a report to the department that describes the electric provider's compliance with the RPS. Reports under this paragraph may include certifications from wholesale suppliers regarding the sources and amounts of energy supplied to an electric provider.

Any person who violates the provisions of the RPS legislation or any wholesale supplier who provides an electric provider with a false or misleading certification regarding the sources or amounts of energy supplied to the electric provider shall forfeit not less than $5,000 nor more than $500,000. Forfeitures under this subsection shall be enforced by action on behalf of the state by the attorney general.

Assessing Entity
Wisconsin Department of Administration

Report Date
Annual Review—June 2001

Statistical Data—2002

RPS Analysis—December 2003

Report Name
2001 Energy Policy (Annual Review)
http://www.doa.state.wi.us/depb/boe/pdf_files/governor_energy_plan.pdf

Wisconsin Energy Statistical Data-2002
http://www.doa.state.wi.us/depb/boe/publications/energy_stats.asp

Wisconsin Energy Statistical Data Chapter 4 - Renewable Energy
http://www.doa.state.wi.us/depb/boe/publications/pdf_files/8_renewable.pdf

According to an upcoming report prepared by the University of Wisconsin (Madison), because of the renewable energy credit banking in the early years, Wisconsin utilities had enough renewable generation in 2002 to meet their requirements for renewable power through 2011 without constructing any new renewable capacity. For more information, see the report under Wisconsin Agricultural Experiment Station project number WIS04737: http://www.cals.wisc.edu/research/stations/index.html

Status
Wisconsin has met its 2002 RPS target of 0.5% and has "banked" enough excess renewable kilowatt-hours to achieve its 2011 target of 2.2%.

According to preliminary estimates from the Public Service Commission, Wisconsin utilities derived 1.26% of their 2001 sales at retail from qualified sources of renewable electricity. This percentage is more than double the minimum requirement of 0.50% for 2001, and exceeds the 2005 1.20% requirement. Statewide, green pricing programs account for about 10% of the total supply of renewable electricity acquired from January 1, 1998 through early 2002. According to the Governors 2001 Energy Policy (Annual Review), Wisconsin is expected to exceed the RPS requirement amount, projecting that by 2012 retail electricity sales produced by renewable resources will total 390 MW or 2.58 percent. Preliminary estimates are that Wisconsin generated 3,000 GWh of renewable electricity in 2001.

Cost Information
Although there is no information on the cost of renewable contracts, a cost impact study has been done that reports current customer costs were approximately 4 cents per month per average customer (at an average of 700 kW per month).

Assessment Contact
Wisconsin Department of Administration
Division of Energy
P.O. Box 7868
Madison, Wisconsin 53707-7868
(608) 266-8234 Fax: (608) 267-6931
http://www.doa.state.wi.us/depb/boe


VI. PUBLIC OUTREACH AND EDUCATION

Outreach/Customer Education
http://www.doa.state.wi.us/depb/boe

Wisconsin Renewable Energy Market Assessment provides an overview of how consumers choose renewable energy systems.
http://www.ecw.org

Press Releases
http://www.doa.state.wi.us/depb/boe/press_releases/press_releases.asp