Assembly Bill 254 proposes significant amendments to the regulation of the Chippewa and Flambeau Improvement Company, primarily focusing on the levying and use of tolls associated with the company's reservoir system. The bill allows tolls to be used for the acquisition and improvement of the reservoir system, which is currently prohibited. It also permits tolls to cover costs related to taxes, depreciation, and working capital, while removing the cap on tolls that previously limited them to reasonable operational costs and a net annual return of 6 percent on capital invested. Additionally, the bill changes the toll liability for water power operators, making those who operate for at least two months during a six-month period subject to tolls for the entire period.

Further changes include the elimination of restrictions on the issuance of negotiable interest-bearing bonds, allowing the company to fund more than half of the costs associated with acquiring dams and reservoirs. The bill also removes the prohibition on paying dividends to stockholders while bonds are outstanding and the requirement to invest earnings in a sinking fund for bond retirement. Overall, these amendments aim to enhance the financial flexibility of the Chippewa and Flambeau Improvement Company, enabling it to better manage its reservoir system and improve water flow regulation.

Statutes affected:
Bill Text: 182.71(5)(b), 182.71, 182.71(5)(c), 182.71(5)(f), 182.71(6)(intro.), 182.71(6)(a), 182.71(6)(f), 182.71(7)(c), 182.71(7)(d), 182.71(8)