Madison – Today the competitive bidding process started with a Request for Proposal (RFP) for a new $1.2 billion 765-kV transmission line that would run through several counties in Wisconsin. Earlier this month, a $568 million package of 345 kV lines in Wisconsin started the RFP process.
Our coalition of ratepayer, consumer protection groups, taxpayer advocates, free market supporters, environmental, and trade associations, representing thousands of Wisconsin families and businesses, urges the Legislature to reject the transmission Right of First Refusal (ROFR) bill; Assembly Bill 25/Senate Bill 28.
The false sense of urgency being spun by incumbent utilities should be disregarded. Wisconsin’s incumbent utilities must now develop a competitive package to secure billions in new projects. Passing a Right of First Refusal (ROFR) bill would allow these utilities to bypass the requirement for competitive bidding on such lines, which has been shown to save consumers an estimated 30%. This competitive process was reaffirmed last year by the Federal Energy Regulatory Commission.
Instead of spending an astronomical number of lobbying hours in the Capitol, our utilities (and certainly their customers) would be much better served by “sharpening their pencils” and submitting a competitive proposal.
Background
In the last two legislative sessions, ROFR language was introduced and ultimately failed to secure the votes to pass. Proponents say this bill is necessary to protect state control, but in reality, it only protects the profits of incumbent utilities and raises rates to electricity customers
On February 13, the Midcontinent Independent System Operator (MISO) issued the RFP for the Wisconsin Southeast Project (WISE). This project would construct four new 345 kV transmission line facilities and four new 345 kV substation facilities for an estimated $568 million. Bids on WISE are due July 28, 2025.
MISO just issued the RFP for the Bell Center-Columbia–Sugar Creek-Illinois/Wisconsin State Line (BECI) earlier today. This project would consist of three new 765 kV transmission line facilities for an estimated $1.2 billion. The bids on BECI are due August 11, 2025.
According to recent utility investor presentations, the estimate for projects open to competition in and/or connected to ATC’s footprint is $1.8 billion. If a ROFR law is passed in Wisconsin, ATC expects its share to be $1.5 billion with a 10.48% Return on Equity. (This is allowed by FERC while at home the Wisconsin PSC only authorizes 9.8%. Such inflated returns raise electric rates and customer bills.)
Impact on Ratepayers
These anti-competitive laws raise rates for ratepayers, hurt our in-state manufacturers, remove a cost-saving tool used in other states, and have been thrown out in courts as unconstitutional and protectionist.
Wisconsin’s electric rates have consistently exceeded the Midwest average since 2003 and continue to surpass the national average. Many utility customers, both large and small, are experiencing the double-digit rate hikes that went into effect for 2025. We should not risk even higher rates going forward.
Please protect the ratepayers and keep rates from increasing higher than they already are!
We respectfully ask that you do NOT support AB 25/SB 28.
