Bill
AB 751
Wisconsin AB 751 requires electric utilities' approved fuel-cost plans to include costs and revenues from MISO-capacity transactions in rate-making and deferred recovery.
Note on source materials
- The documents you provided include two different measures labeled “AB 751.” One is a California bill (authored by Gipson) about rest‑period exemptions for petroleum/refinery safety‑sensitive employees. The bill matching the title you requested — “calculation of fuel costs for an electric public utility’s fuel cost plan” — is a Wisconsin draft (LRB‑4829/1). The summary below focuses on the Wisconsin fuel‑cost bill (LRB‑4829/1 / Assembly Bill 751), per your title.
Summary — AB 751 (Wisconsin; LRB‑4829/1)
Purpose and intent
- Require that an electric public utility’s approved fuel cost plan account for the costs and revenues associated with buying and selling generation capacity that qualifies under Midcontinent Independent System Operator (MISO) capacity requirements. The change clarifies that capacity market transactions are part of the “fuel cost” calculation used for rate‑making and deferred recovery/refund.
Key provisions
- Creates a new statutory subdivision: 196.20(4)(a)3, defining “Midcontinent independent system operation” by cross‑reference to the meaning in s. 196.485(1)(ds) (i.e., the MISO regional market operator).
- Amends 196.20(4)(c)1 to specify that, when an electric public utility has an approved fuel cost plan and the Public Service Commission (PSC) defers under‑ or over‑collections outside the utility’s annual symmetrical fuel‑cost tolerance, the fuel‑cost calculation “shall be calculated to account for the cost of purchasing and the revenue earned in selling electricity generation capacity that meets the requirements for capacity as established by the Midcontinent Independent System Operator.”
- Retains PSC authority to establish a symmetrical annual tolerance and to defer under/over‑collections for later recovery or refund consistent with existing scheme.
Who would be affected
- Electric public utilities subject to Wisconsin statute ch. 196 and PSC fuel cost plan procedures — particularly utilities that participate in MISO capacity markets or otherwise buy/sell capacity.
- The Wisconsin Public Service Commission (administration and rate determinations).
- Ratepayers: inclusion of capacity costs and revenues in fuel cost plans may change the timing and magnitude of cost recovery and refunds that flow through fuel cost adjustments.
- Market participants and generators whose capacity is bought or sold by utilities for compliance with MISO requirements.
Procedural/timeline aspects and status
- The LRB draft shows the bill amends 196.20 and was prepared for the 2025–2026 Legislature.
- Materials supplied indicate legislative action culminating in enactment: approved by the Governor and chaptered as Chapter 42, Statutes of 2025 (Governor’s approval dated July 14, 2025). (If you need authoritative status or the enrolled bill text, verify with the Wisconsin Legislature or the Secretary of State’s chaptered laws.)
Potential impacts and considerations
- Utilities: changes accounting and rate‑recovery mechanics to explicitly include capacity market flows in fuel cost plans; may affect utility hedging and procurement strategies.
- Rates: short‑term customer bills could be affected if capacity transactions create additional under‑ or over‑collections outside the PSC tolerance; the PSC’s deferral mechanism smooths recovery over time but this expands the base of recoverable items.
- Regulatory interactions: aligns state fuel‑cost accounting with regional MISO constructs; may require utilities and PSC to develop or adjust reporting practices to capture capacity costs and revenues for fuel plan filings.
- No appropriation was required; the fiscal committee was consulted per the digest.
If you want, I can:
- Extract the exact statutory language changes side‑by‑side with current text of 196.20.
- Prepare a short explainer on how MISO capacity markets work and how their transactions could flow through a Wisconsin fuel cost plan.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
