Reporting Classes

This document has been prepared to classify entities in accordance with a system of accounts prescribed by the Commission, if applicable. See the respective industry type shown below for particulars.

Electric Industry
Natural Gas Industry
Telecommunications Industry
Water and Sewer Municipals
Joint Utilities

ELECTRIC INDUSTRY

Investor-Owned

A. For the purpose of applying the system of accounts prescribed by the Commission, electric utilities are divided into classes^[1], as follows:

Major --Electric utilities that had, in each of the last three consecutive years, sales or transmission service that exceeded any one or more of the following:

(1) One million megawatt-hours of total sales;
(2) 100 megawatt-hours of sales for resale;
(3) 500 megawatt-hours of gross interchange out; or
(4) 500 megawatt-hours of wheeling for others (deliveries plus losses)

Nonmajor--Electric utilities that are not classified as a “major” (as defined above), and had total electric sales in each of the last three consecutive years of 10,000 megawatt-hours or more.

^[1] In the case of a newly established entity, the projected data shall be the basis. Subsequent changes in classification shall be made as necessary when the megawatt-hours for each of the three immediately preceding years shall exceed the upper limit, or is less than the lower limit of the classification previously applicable to the electric utility. Any utility may, at its option, adopt the system of accounts prescribed by the Commission for any larger class of utilities.

Municipal Electric or Joint Municipal (Electric and Water, Gas, or Sewer) Utilities

The class to which any utility belongs will originally be determined by the average of its annual electric operating revenues for the last three consecutive years. Subsequent changes in classification shall be made when the annual electric operating revenues for each of the three immediately preceding years shall exceed the upper limit, or is less than the lower limit, of the annual electric operating revenues of the classification previously applicable to the utility. Any utility may, at its option, adopt the system of acccounts prescribed by the Commission for any larger class of utilities.

The municipal electric utilities are based upon dollars of revenue as follows:

Class AB
Electric revenues of $4,000,000 or more

Class C
Electric revenues of $200,000 or more but less than $4,000,000

Class D
Electric revenues less than $200,000

Note: For a joint water and electric utility, the larger size classification applicable to either shall be applied to each utility.

NATURAL GAS INDUSTRY

A. For the purpose of applying the system of accounts prescribed by the Commission, natural gas companies are divided into classes^[2], as follows:

Major --Each natural gas company as defined in the Natural Gas Act, whose combined gas sold for resale and gas transported or stored for a fee exceeds 50 million Mcf at 14.73 psi (60° F) in each of the three previous calendar years.

Nonmajor--Natural gas companies that are not classified as a “major company” (as defined above), and had total gas sales or volume transactions exceeding 200,000 Mcf at 14.73 psi (60 ° F) in each of the three previous calendar years.

^[2]In each of the last three consecutive years, or, in the case of a newly established entity, the projected data shall be the basis. Subsequent changes in classification shall be made when the volume for each of the three immediately preceding years exceeds the upper limit, or is less than the lower limit of the classification previously applicable to the natural gas company. Any utility may, at its option, adopt the system of accounts prescribed by the Commission for any larger class of utilities.

TELECOMMUNICATIONS INDUSTRY

Not Applicable

Currently there is no uniform system of accounts that establishes respective classes of providers (e.g., Class A, Class B). However, all regulatory requirements (e.g., filing of annual reports, payment of assessments and fees, etc.) continue in force with regard to a particular provider's certification by the Commission.

Local Exchange Carrier

Class A
Companies having or affiliated with a holding company having a combined total equal to or greater than 50,000 access lines in the state of Wisconsin. A particular entity's classification is evaluated on an annual basis by the Commission. Class A entities are required to file Class A information in the annual report.

Class B
Companies having or affiliated with a holding company having a combined total less than 50,000 access lines in the state of Wisconsin. A particular entity's classification is evaluated on an annual basis by the Commission. Class B entities may elect to report either Class A or Class B information in the annual report.

WATER AND SEWER MUNICIPALS

The municipal water and combined water and sewer utilities are based upon number of customers as follows:

Class AB
4000 or more customers

Class C
From 1000 customers to less than 4000 customers

Class D
Less than 1000 customers

April 30, 2002