Power line legislation favoring in-state companies passes Assembly

Without debate and on a voice vote — which included audible cries of “No” — the Assembly passed a bill Thursday that would give in-state utilities the right to construct new interstate power lines passing through Wisconsin without competitive bidding.

Critics have called the legislation a guaranteed monopoly measure that will drive up utility costs for Wisconsin ratepayers. The utility companies backing the bill contend it will reduce power line construction costs.

The legislation, AB-470, applies to new multistate power line projects to be built in Wisconsin over the next several years under the supervision of the Midcontinent Independent System Operator (MISO). The operator is a multi-state private company that controls the regional electric grid and is regulated by the Federal Energy Regulatory Commission (FERC).

Until nearly a decade ago, power line operators had a “right of first refusal” to take on new projects in their state. In 2015, FERC issued an order assigning regional networks such as MISO to select power line operators through competitive bidding.

The measure reinstates the previous first-refusal right for in-state power companies, which proponents say would be more reliable. Opponents argue that getting rid of a competitive bidding process will prevent MISO from being able to find cost savings, leading to higher costs for electricity customers.

Supporters include major electric utilities operating in Wisconsin as well as ATC Management Inc., the primary operator of electric transmission lines in Wisconsin. Building trades unions whose members are employed by ATC and the power companies have also registered in favor of the bill.

The opposition crosses the political spectrum and includes environmental groups, the Citizens Utility Board (CUB), AARP, and several conservative organizations.

In the Assembly Energy and Utilities Committee, the legislation passed on a  12-4 vote in November. Votes for and against the bill were bipartisan.

ATC, the Wisconsin Electric Cooperative Association, Wisconsin Energies Corp., Madison Gas & Electric and Xcel Energy together have spent more than 600 hours lobbying for the legislation, according to data collected by the Wisconsin Ethics Commission. That accounts half of the nearly 1,200 hours of lobbying by supporters and opponents combined.

“Our legislators tilted the field in favor of crony capitalism and against the best interest of Wisconsinites,” Americans for Prosperity, one of the conservative critics of the bill, said in a statement released shortly after the Assembly vote Thursday.

The legislation now goes to the state Senate. Its Senate companion, SB-481, passed out of committee in November on a 4-1 vote, with Republican Sen. Romaine Quinn casting the only opposition vote.