Brief summary: When selecting options to meet energy demands, the Wisconsin Energy Priorities Law directs the PSC to account for the cost effectiveness of energy conservation and efficiency, noncombustible renewable energy resources, combustible renewable energy resources, and nonrenewable combustible energy resources, in that order. By failing to conduct a cost-benefit analysis of law-required, customer-preferred, energy investments in the review process, the PSC is failing to uphold the Wisconsin Energy Priorities Law.
Wisconsin law requires that before a transmission project can be sited and built, it must be established that there is a reasonable need for additional electricity. If that need is established, Wisconsin law then requires that it be met with energy conservation and efficiency methods first, followed by renewable energy sources such as wind and solar. (Wis. Stat. 196.491(3)(d)) (Wis. Stat. 1.12(4))
Under Wisconsin Law, the Public Service Commission can only approve an application for the necessary Certificate of Public Convenience and Necessity (CPCN, needed to move forward with any power line project) if a proposed project can meet three criteria:
1) the proposed project must demonstrate that it is needed to satisfy the reasonable electric energy needs of the public;
2) the proposed project must demonstrate that it provides ‘usage, service or increased regional reliability benefits to the wholesale and retail customers or members in this state’;
3) the proposed project must demonstrate that ‘the benefits of the high-voltage transmission line are reasonable in relation to the cost of the high-voltage transmission line.’ (Wis. Stat. 196.491(3)(d)). (ELPC, p. 10)
Moreover, the Wisconsin Energy Priorities Law prioritizes the criteria to use when selecting options to meet energy demands. These priorities are as follows:
1) “Energy conservation and efficiency”
2) “Noncombustible renewable energy resources”
3) “Combustible renewable energy resources”
4) “Nonrenewable combustible energy resources” (Wis. Stat. 1.12(4)) (ELPC, p. 22)
In other words, Wisconsin must apply energy efficiency and conservation methods first in meeting its energy demand. If additional demand exists, this should be met through renewable energy resources, such as wind power and solar energy. (ELPC, p. 22)