When is a Certificate of
Authority (CA) from the Commission required?
| Wisconsin Stat. § 196.49 describes when a CA is required. Wisconsin Admin Code ch. PSC 184.03 provides additional detail about the types of utility actions that require a CA from the Commission:
- New Utility
- Expansion, Acquisition, and Interconnection
- Construction of Facilities: A utility shall obtain a certificate from the commission before constructing, purchasing, installing, modifying, replacing, or placing in operation any plant not exempt under
184.03(4) if the project cost exceeds the cost threshold specified in
196.49 (5g) (ar), Stats., as revised under
Wis. Admin Code ch. PSC 184.03(3)(b).
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What is the current
construction threshold?
| Wisconsin Stat. § 196.49(5g) requires the Commission, on May 1 of each even-numbered year, to adjust the estimated gross project cost thresholds for construction projects requiring Commission review and approval.
Effective May 1, 2020, the public utility construction cost threshold for water public utilities or a combined water and sewer public utility is $432,000, or 25% of the utility’s operating revenues in the prior year, whichever is less (not including exempt projects). Commission correspondence to all utilities can be found in
Docket 5-GF-154.
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What types of projects are exempt from Commission approval?
| Wisconsin Admin Code ch. PSC 184.03 identifies utility actions that do not require a Certificate of Authority. |
What is the timing involved in Commission review?
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Wisconsin Stat. § 196.49(5r) provides specific deadlines for Commission review of water construction projects. The Commission will determine if an application is complete within 45 days of the application filing date. The Commission will issue a final decision within 90 days of determining an application is complete if a hearing is not required, and within 180 days if a hearing is required.
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How is the PSC review process coordinated with the Wisconsin Department of Natural Resources review?
| Commission staff strongly encourage utilities to request a pre-application web conference with Wisconsin Department of Natural Resources (DNR) and PSC staff during the early planning phases of a project. Pre-application conferences are particularly useful when constructing new water sources, planning the establishment of a new utility, expanding a utility’s service area, acquiring another utility, establishing an interconnection with another utility, or constructing water mains 8-inches or greater in diameter and 3 miles or more in length.
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How does the PSC communicate with utilities, consultants and interested parties/individuals?
| All official correspondence related to water utility dockets is sent via email notifications from the ERF system. Correspondence includes all documents uploaded to ERF as part of a specific docket (i.e. data requests, memos, exhibits, testimony, notices, orders, etc.). Any utility staff, consultants, and other parties interested in receiving these notifications must subscribe to the specific docket for the utility’s specific water construction application. You will be able to subscribe for docket email notifications once PSC assigns a docket number. To subscribe, Go to
ERF, and click on ERF – EZ Subscriptions. Enter the docket (case) number, your e-mail address, and click the Send Code Now link. Within seconds, you will receive an email with a five digit code. Enter the code in the One-Time Code box, and click the Subscribe Now button. You can unsubscribe any time by clicking the link in the e-mail notification. For help subscribing, please go to:
Subscribing to Dockets
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How is the estimated rate impact calculated?
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Applicants may use the following equation to estimate the percent increase in water rates due to the construction of the proposed project:
Definitions:
UP = Utility financed project costs in dollars (loans or funds)
CP = Contributed financed project costs in dollars (grants and principal forgiveness)
Annual Sales of Water = the utility’s annual “total sales of water” in dollars from page W-1 of the utility’s most current annual report
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How are application and
review fees determined?
| PSC staff review time will be billed as a direct assessment to the utility per Wis. Stat. §196.85.
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