1. (1) New utility. A person intending to operate as a utility may not begin construction of, install, or place in operation any facilities for furnishing water or sewer service in a municipality in which the person is not currently furnishing water or sewer service as a utility without the commission’s prior approval.

2. (2) Expansion, acquisition, and interconnection. A utility shall obtain a certificate from the commission before undertaking any of the following:

   1. (a) Constructing facilities or initiating service in a municipality not currently served by the utility.
   2. (b) Constructing facilities or initiating service in a service area of another utility.
   3. (c) Acquiring or placing in operation existing facilities for furnishing water or sewer service obtained from another person or utility.
   4. (d) Establishing an interconnection with another utility with which it has no existing interconnection.
   5. (e) Combining or consolidating with another utility.

3. (3) Construction of facilities.

   1. (a) A utility shall obtain a certificate from the commission before constructing, purchasing, installing, modifying, replacing, or placing in operation any plant not exempt under sub. (4) if the project cost exceeds the cost threshold specified in s. 196.49 (5g) (ar), Stats., as revised under par. (b).

      Note: Examples of projects that typically require a certificate include all of the following:

      1. Groundwater wells, surface water intakes, and other sources of water supply.

      2. Water treatment, purification, and disinfection facilities.

      3. Elevated tanks, reservoirs, and other storage facilities.

      4. Pumping stations, pressure-reducing stations, and associated facilities.

      5. Utility buildings.

      6. Utility main if a portion of the main is located outside of the utility’s service area or if the main is eight inches or greater in nominal diameter and three or more miles long.

      7. Sewer facilities, including any pumping facilities or sewage treatment and disposal plant.

   2. (b) Beginning on May 1, 2014, and on May 1 of each successive even-numbered year thereafter, the commission shall adjust the cost thresholds in s. 196.49 (5g) (ar), Stats., to reflect changes to the cost of water utility construction based on the applicable industry cost index numbers published in the “Handy-Whitman Index of Public Utility Construction Costs.”

   3. (c) The commission shall notify all water utilities of the resulting adjusted cost limits by May 15 of each even-numbered year and shall publicize the adjusted cost limits on the commission’s website. If the Handy-Whitman Index is no longer available, an equivalent successor index may be used which is generally recognized by the water industry and acceptable to the commission.

      Note: The commission maintains or has access to the Handy-Whitman Index of Public Utility Construction Costs and this reference or a copy may be reviewed by contacting the commission’s offices.

4. (4) Certificate not required. Notwithstanding sub. (3), a utility does not need a certificate to do any of the following:

   1. (a) Install, replace, or repair a utility main, unless one of the following applies:

      1. 1. A portion of the main is located outside of the utility’s service area.
      2. 2. The main is eight inches or greater in nominal diameter and three or more miles long.
   2. (b) Install, replace, or repair service laterals, hydrants, or valves within the utility’s service area.
   3. (c) Meter installation, repair, or replacement.
   4. (d) Install, replace, or repair supervisory control and data acquisition (SCADA) systems, telemetry equipment, or other electronic monitoring and control systems.
   5. (e) Replace or repair existing pumps, motors, or associated equipment.
   6. (f) Conduct routine maintenance or repair to utility facilities, including buildings used for utility purposes.
   7. (g) Replace or repair filtration media used in existing water treatment purification and disinfection facilities.
   8. (h) Install plant in accordance with filed extension rules and rates.
   9. (i) Install plant in compliance with a commission order.
   10. (j) Relocate or modify existing plant to accommodate highway or airport construction.
   11. (k) Acquire vehicles or other movable equipment.

History

History: CR 11-039: cr. Register July 2012 No. 679, eff. 8-1-12; CR 14-053: renum. (3) to (3) (a) and am., cr. (3) (b), (c) Register April 2015 No. 712, eff. 5-1-15; correction in (3) (a), (b) made under s. 13.92 (4) (b) 7., Stats., Register January 2017 No. 733; 2021 Wis. Act 86: am. (4) (c) Register November 2021 No. 791, eff. 12-1-21.