As the Trump administration announces major efforts to address the nation’s growing affordability crisis, the latest CPI numbers illustrates that electricity price inflation continues to be one of the top drivers of costs harming American consumers.
Washington, DC – In a victory for Wisconsin consumers, the Midcontinent Independent System Operator (MISO) selected two different packages of transmission lines in Wisconsin. MISO originally estimated the two interstate lines to total close to $2 billion. Competition brought the estimated combined cost down to roughly $1.4 billion.
- MISO selected Viridon Midcontinent LLC for a 106-mile 765 kV line in southeastern Wisconsin (WISE). The company’s $349 million bid has $313 million in savings over MISO design cost estimates or 45%. Viridon’s bid has $132 million in savings over the highest bid or 25%. Viridon had superior overall financing and cost cap packages.
- MISO selected Transource Inc. for a 188-mile 765 in southwestern Wisconsin that starts in Bell Center and runs to the Illinois state line (BECI). The company’s $1 billion bid has $422 million in savings over MISO’s design cost estimates or 30%. Transcource’s bid has $339 million in savings over the highest bid or 25%. Transource had superior 9.8% return on equity financing and cost cap packages.
In a statement, Paul Cicio, Chair of the Electricity Transmission Competition Coalition stated “Competition works and this is the latest example of a robust competitive bidding process delivering costs savings for consumers. The affordability crisis has voters calling for policies that lower electricity prices and yet the one law that can do this consistently across the country, FERC Order 1000, is not being enforced by the government. Americans are demanding lower electricity costs – competition delivers lower costs – it’s time for FERC to deliver for the American people – it’s time for FERC to require utilities to compete with one another when building new interstate transmission lines.”
Competitive bidding on transmission costs has been shown to lower costs by as much as 45% and yet only than 5% of transmission projects are subject to competition. Electricity prices increased by 31.5% over the past five years and competition can address these cost increases while spurring innovation and meeting the demands of the new American economy.
See examples of projects that were competitively bid and the cost savings, as well as projects that were not subject to competition and the cost overruns here.
About the Electricity Transmission Competition Coalition
The Electricity Transmission Competition Coalition (ETCC) is a broad-based, nation-wide coalition committed to increasing competition in America’s electricity transmission infrastructure. We advocate for common-sense policies and solutions that result in competitively priced transmission projects, which reduce energy costs for all ratepayers – from large manufacturers to residential consumers. The ETCC represents a diverse group of 95 companies and organizations from all 50 states, including manufacturing groups, retail electric consumers, state consumer advocates, think tanks, and non-incumbent transmission developers.
For more information, visit: www.electricitytransmissioncompetitioncoalition.org.
Press Contact:
Ginger Felberg
