Milwaukee Journal Sentinel

No Senate vote, ending fight over electrical projects

New transmissi­on line work to be bid on, rather than being promised to state utilities

- Karl Ebert

Billions of dollars of future electric transmissi­on projects in Wisconsin will be subject to competitiv­e bidding after the state Senate failed to advance a bill that would have given the state’s utilities a virtual monopoly on building and operating such projects.

The Republican-sponsored right of first refusal, or ROFR, bill was among the most heavily lobbied in the Legislativ­e session that ended Tuesday. The bill was passed on a voice vote by the Assembly in February, but failed to come to a vote in the Senate.

The debate heated up in the final days of the session after the Midcontine­nt Independen­t System Operator, which oversees transmissi­on in 15 states, released its plan for second of four phases of regional transmissi­on system improvemen­ts. Its plan for Wisconsin includes billions of dollars in spending on a massive cross-state transmissi­on line with three times the capacity of existing power lines, and numerous new and upgraded substation­s. The work aims to improve capacity to better connect new sources of power and increase the system’s reliabilit­y.

The state’s three main transmissi­on companies, American Transmissi­on Company, Xcel Energy and Dairyland Power Cooperativ­e, were joined by Wisconsin’s investorow­ned, municipal and utilities in arguing that the incumbent utilities are best suited to do the work and would be able to do it at a lower long-term cost.

Ellen Nowak, ATC’s vice president for regulatory and government affairs, said opening the door to out-of-state transmissi­on companies raises the specter of a return to the fractured, multi-provider transmissi­on network that plagued the state in the 1990s. ATC was created by the legislatur­e in 2011 to take ownership of electric transmissi­on networks and increase their reliabilit­y in eastern and southern Wisconsin.

“Now we are opening up to risk and going back to that fragmented type of grid that we had in the 90s that caused so many problems,” she said. “And, from an economic developmen­t perspectiv­e, from just a life perspectiv­e, we’re a provider of critical services in the state and we don’t want to do things that jeopardize our ability to deliver.”

Megan Novak, state director of Americans For Prosperity-Wisconsin, called the bill a victory for Wisconsin’s electric customers.

“At the end of the day, the state Senate stood strong for ratepayers, especially after $1.5 billion in rate hikes over the last four years that ratepayers had to pay,” she said. “In this case, ratepayers got a win, to include competitio­n to hopefully keep costs down as much as possible going forward.

AFP-Wisconsin was a lead lobbying organizati­on among an unusual coalition of interest groups including consumer advocates, Associated Builders and Contractor­s of Wisconsin and AARP that lined up in opposition to the bill, arguing that competitio­n would lower constructi­on costs.

Novak said AFP had identified 11 Republican senators who opposed the bill. A handful of Democrats were also opposed she said, making it impossible for supporters to muster the two-thirds vote needed to pull the bill out of committee.

Senate Minority Leader Dianne Hesselbein, D-Middleton, told WisPolitic­s Tuesday that Republican leaders didn’t ask her whether she had members willing to support a motion to pull the bill out of the Senate’s Natural Resources and Energy Committee, where it had languished since midFebruar­y.

Eight of 14 MISO states have adopted ROFR laws since the Federal Energy Regulatory Commission opened transmissi­on projects to competitio­n in 2011. However, that rule is under review, and attention in Wisconsin will now turn, at least in part, to Washington.

Nowak said she believes the issue will be revisited by the legislatur­e, especially give the bill’s bipartisan support. ATC prefers a state-level solution, she said.

“We’re committed to this,” Nowak said. “We believe it’s a good policy for electric customers in the entire state, so we’re not stopping.”

 ?? GETTY IMAGES ?? Wisconsin is expected to get new transmissi­on lines. The Midcontine­nt Independen­t System Operator’s plan includes a cross-state transmissi­on line with three times the capacity of existing power lines.
GETTY IMAGES Wisconsin is expected to get new transmissi­on lines. The Midcontine­nt Independen­t System Operator’s plan includes a cross-state transmissi­on line with three times the capacity of existing power lines.

Newspapers in English

Newspapers from United States