MADISON, WI – Anyone who cares about skyrocketing increases in their monthly electric bills should be concerned about a bill making its way through the state legislature right now that could have a devastating financial impact on all Wisconsinites – especially those who are just getting by on low or fixed incomes, says AARP Wisconsin State Director Martha Cranley.
AARP Wisconsin is urging state lawmakers to oppose AB-470/SB-481, which would prevent competitive bidding and give exclusive rights to big utility companies to build new transmission lines in Wisconsin.
“This legislation, commonly called “Right of First Refusal,” or ROFR, is a power grab and blatant end run around current sound federal policy which requires that such construction be awarded openly to the lowest cost bidder,” Cranley said.
“Given the billions in funding for new high-voltage transmission lines planned to be constructed in Wisconsin and the Midwest, the estimated 20% or more savings that the current policy provides will limit the upward pressure on Wisconsin’s already too-high electricity rates. Surprisingly, we have witnessed our electricity rates jump to the highest in the North Central states for the first time in 20 years, digging further into the pockets of aging and retired Wisconsinites.”
As in current practice, most transmission line construction is contracted out and companies are free to compete and bid on constructing these lines if they are the lowest-cost bidder, assuring them construction rights.
AARP has helped defeat similar ROFR legislation in Kansas, Missouri, Iowa, Texas, and Illinois. Transmission competition is one way to keep electricity rates from increasing further. This issue is currently before the state Senate for consideration.
“Lawmakers should not feel pressured to rush this bad policy. The matter is under review before the Federal Energy Regulatory Commission, which means there is no need for Wisconsin to act currently,” Cranley said.
“If the Legislature must get involved, we urge the Public Service Commission to examine why Wisconsin’s electricity rates are so much higher than neighboring states, then conduct further study to see how enacting our own ROFR would result in cost spikes for Wisconsin residents.”
In the meantime, AARP Wisconsin is urging residents to contact their local state Senators and tell them to vote “no” on AB 470/SB 481.
