PSC advances broad exemptions to individual electric-metering rule for multifamily housing

The Public Service Commission on June 19, 2025 approved revisions to an administrative rule governing individual electric metering in multi‑dwelling residential buildings, moving the issue from case-by-case waivers to a set of categorical exemptions designed to reduce waiver requests and account for modern energy practices.

The change would add several new exemptions to Wisconsin administrative code subsection PSE 1.13.0803 (individual electric metering), including a combined exemption tying equipment efficiency and per‑unit projected usage; an exemption for low projected per‑unit usage; an exemption for new construction that participates in recognized energy‑design programs; and an exemption for projects under contract with local, state or federal affordable‑housing programs. Chair Strand said the proposed revisions are intended to ‘‘clean up, clarify, update, and improve’’ a rule written in 1980 and last revised in 2002.

The rules change matters because the existing waiver process has produced increasing, complex requests that commissioners say have tied up staff time and blocked housing projects. Commissioners said the revisions aim to ‘‘future‑proof’’ the rule by linking exemptions to established standards and programs such as the Focus on Energy design assistance program and by creating objective thresholds for projected energy use.

Commission staff summarized public comments and proposed specific decision items. The commission’s draft includes four principal exemptions. The first two were combined by the commissioners: (1) a requirement that electric equipment meet established high‑efficiency standards consistent with Focus on Energy or equivalent programs; and (2) that the average metered electric energy use per unit is projected to be less than half of the average monthly residential use per customer in Wisconsin, based on the previous five‑year U.S. Energy Information Administration or similar state or federal data. Commissioners agreed that on‑site energy technologies that offset overall usage should be factored into those usage projections.

The third proposed exemption covers new construction that participates in an energy design assistance program such as Focus on Energy’s program or an equivalent. Commissioners said linking the exemption to a program that can be initiated during design avoids timing problems where certifications are only completed after construction. The fourth exemption would exempt multi‑dwelling residential buildings that are under contract with local, state or federal affordable housing programs.

Commissioners also agreed to strike the rule subsection that required retroactive installation of individual meters in certain existing buildings, saying that adding meters to converted or older structures is costly, rare, and often counterproductive for affordable housing and adaptive reuse projects. Commissioner Hawkins said striking that subsection ‘‘gets us much closer to what we see in our neighboring states.’’ Commissioner Nieto asked staff to add a note linking defined terms such as community‑based residential facilities to section 50.01 of the Wisconsin statutes to preserve statutory consistency.

On consumer protections, the commission declined to add new landlord‑tenant or resale prohibitions into this rulemaking. Chair Strand and other commissioners said those protections already appear elsewhere in state law and administrative code and that the PSC likely lacks authority to remake those rules within this proceeding.

Commissioners endorsed a process for next steps: staff will draft a redline reflecting today’s changes, the commission will review the redline before the rule is sent to the governor’s office, and, if approved, the rule will follow the normal legislative referral process. Chair Strand thanked commenters including the Clean Energy Advocates, Clean Wisconsin, Renew, the Union of Concerned Scientists, the Wisconsin League of Conservation Voters, the NAACP, the Wisconsin Local Government Climate Coalition, and the city of Madison for substantive comments.

The commission approved the draft revisions and legislative report with a motion moved by Commissioner Nieto and seconded by Commissioner Hawkins. Chair Strand said commissioners would see the redline before it is filed with the governor.