Regulation of the Chippewa and Flambeau Improvement Company

1. Allows tolls to be levied and used to pay for acquisition and improvement of the company’s reservoir system. Current law prohibits levying and using tolls for those purposes and prohibits tolls from exceeding the reasonable costs of operation and maintenance, including rent paid for leased properties, and a net annual return of 6 percent on capital invested in the company, including the par value of negotiable bonds issued by the company.

2. Allows tolls to be levied to recover the costs of taxes and depreciation and to provide a reasonable allowance for working capital.

3. Makes a water power operator that operates for at least two months of a six-month toll period subject to tolls for the entire six-month toll period. Under current law, such a water power operator is not subject to tolls for the entire six-month toll period.

4. Eliminates the restriction under current law that restricts negotiable interest-bearing bonds issued by the company from funding no more than half of the cost of acquiring dams, reservoirs, and rights.

5. Eliminates the prohibition under current law against the company from paying dividends to its stockholders while any of its bonds are outstanding, and also eliminates the current law requirement that if any company bonds are outstanding, subject to PSC approval, the earnings of the capital stock must be invested in a sinking fund to retire the outstanding bonds.