Water Utilities must apply to the Public Service Commission of Wisconsin (PSCW) in order to receive a Certificate of Authority (approval) for most water-related construction projects. PSC § 184.03 provides details on the types of construction projects that would require PSCW construction authorization.

Typical utility actions that would require construction authorization:

New Utility
Expansion, Acquisition, and Interconnection
Construction of Facilities

Construction of facilities includes purchasing, installing, modifying, or replacing any plant that is not exempt under PSC § 184.03(4) if the project exceeds the cost threshold specified in PSC § 196.49 (5g).

Examples of such facilities may include the following:

Groundwater wells, surface water intakes, and other sources of water supply
Water treatment, purification, and disinfection facilities
Elevated tanks, reservoirs, and other storage facilities
Pumping stations, reservoirs, and other storage facilities
Utility buildings
Utility main if a portion of the main is located outside the utility’s service area of it the main is 8 inches or greater in nominal diameter and 3 or more miles long
Sewer utilities, including any pumping facilities or sewerage treatment and disposal plant

However, if the project costs less than a certain threshold, then the project is exempt from the construction-authorization process. Effective May 1, 2022, the public utility construction threshold for public water utilities or a combined water and sewer utility is $470,000 or 25 percent of the utility’s operating revenues in the prior year, whichever is less. The current construction threshold can be found at the following link in docket 05-GF-154.

PSC § 196.49 (5r) provides specific deadlines for the PSCW review of construction projects. The PSCW will determine if the application is complete typically within 45 days of the application filing date. The final decision will be issued 90 days from determining if the application is complete, if no hearing is required, and 180 days if a hearing is required. It is strongly encouraged utilities request a pre-application web conference with the Wisconsin Department of Natural Resources (WDNR) and PSCW during the early planning phases of the project. These conferences are useful in addressing any immediate concerns with the PSCW and WDNR prior to filing. In addition, this aids in expediting the processing of the application and associated approvals.

Once you have determined that your project requires Construction Authorization, you need to complete and file the PSC Water Construction Application and supporting documentation under the utility’s PSC identification number.

It is important to note if the PSCW discovers an unauthorized project in progress, you can expect an order to cease work, notice of PSCW investigation, and questions about what you are doing and why. You must apply for construction authorization before restarting work, if the PSC discovers an authorized project after completion, they will still formally investigate and ask questions. If you have asked for new rates, expect delays while the PSC investigates.