MADISON — A report released today by the John K. MacIver Institute for Public Policy found that non-competitively developed electrical infrastructure projects cost ratepayers nearly 20% more than competitively developed projects — a major warning sign to lawmakers with Right of First Refusal (ROFR) legislation having recently been introduced in the state legislature. American Transmission Company, is a creation of large utility corporations, has pushed ROFR legislation in the previous session of the state legislature.
According to the report done by MacIver Policy Analyst Michael Lucas, the 17 representative non-competitively developed projects analyzed had cost overruns totalling more than $1 billion. The 17 projects were undertaken in the Midwest from 2011 through 2020.
“In the absence of competition, there is no reason and, indeed, no requirement, for ATC or any other incumbent transmission developer to offer creative and cost-saving mechanisms,” the report states. “If, indeed, ATC is the least-cost developer of transmission infrastructure in the state, then they have nothing to fear from competition other than the prospect of earning less profit than they would in a 100% monopoly industry.”
The study, “Competition Reduces Costs to Consumers: ATC Agrees,” can be found here. Additional reporting from Michael Lucas on ROFR can be found here.
