The proposed Right of First Refusal (ROFR) legislation is aimed at reducing energy costs and ensuring that Wisconsin retains control over the safety and reliability of its power grid. By preventing out-of-state developers from taking control of the state’s transmission grid, the bill ensures that Wisconsin’s interests are placed first. Moreover, in the ever-evolving world of energy modernization, growing our in-state Wisconsin workforce will be a key component of the solutions to our rapid energy transition.
The legislation requires bidding for the engineering, procurement, and construction of transmission lines. Those costs are reported quarterly to the Public Service Commission of Wisconsin (PSCW) and any deviation from project cost estimates must be accompanied by a public explanation. This approach not only saves time and money but also prevents bait-and-switch construction bids and cost overruns like we see in other states.
The legislation will result in real cost savings that are passed on to Wisconsin’s ratepayers. The incumbent transmission providers are permitted to share costs with the rest of the region, resulting in a net reduction in costs for Wisconsin’s electric customers. This would not be true with out of state developers.
Wisconsin’s energy companies are committed to utilizing Wisconsin’s unionized building trades to construct transmission in Wisconsin. Organizations like ours, a group that brings together representatives of organized labor with large and small energy providers and consumers, strongly supports ROFR.
Reliable energy infrastructure is also crucial for Wisconsin businesses, and that’s why economic development organizations and local chambers of commerce from all across the state support ROFR. Safe, reliable, and cost-effective energy spurs economic development in Wisconsin. Without ROFR, there is a risk of long delays in the federal approval process and increased prices, as seen in other states that did not pass similar legislation. To keep costs down, almost all the states in the Midwest have adopted ROFR bills to protect their ratepayers.
This bill will have a profound impact on fostering economic growth and ongoing job creation in our state. By passing this bill, the Wisconsin Legislature will be endorsing a future where Wisconsin’s economic development and labor force are prioritized, ensuring a prosperous and resilient state for generations to come.
