Wisconsin groups push back against energy right of first refusal reprisal

(The Center Square) – A pair of Wisconsin groups are warning that right-of-first refusal legislation that previously did not pass on its own will be tucked into other legislation and up for a vote in the Wisconsin Legislature in the coming weeks.

H.O.T. Government – a Racine based group calling for Honesty, Openness and Transparency in Wisconsin government – claims a push is being made to have the Wisconsin Assembly vote on the measure April 15 and the Senate voting April 22.

“This is a dangerous, anti-competitive policy that Wisconsinites already rejected once,” said a spokesperson for H.O.T. Government, a watchdog group working to expose backroom deals in the Capitol. “Now lawmakers are hoping you’re not paying attention. Don’t let them get away with it.”

The legislation would allow companies doing business in Wisconsin the chance to bid on work on the electric grid before any out of state companies can offer a price.

The legislation was sponsored by Senate Majority Leader Devin LeMahieu, R-Oostburg, and State Rep. Kevin Petersen, R-Waupaca, and backed by a group of business groups and businesses including Kwik Trip, Wisconsin Counties Association, the Wisconsin Economic Development Association, the Wisconsin Electrical Cooperative Association, the Municipal Electric Utilities of Wisconsin, public power company WPPI Energy, the state’s three major electricity transmission companies and all of the state’s investor-owned power generating companies.

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The Wisconsin Industrial Energy Group, Inc., is a nonprofit that represents 25 of Wisconsin’s largest energy consumers and pushes for policies to support affordable and reliable energy.

The group is pushing against the legislation, saying it removes competitive protections and would result in higher costs for consumers.

“WIEG’s board of directors remains unified in opposition to the transmission Right of First Refusal legislation,” said Todd Stuart, executive director of WIEG. “A ROFR law would only add costs for customers in Wisconsin and add additional rate pressure.”

WIEG is also pushing for the Public Service Commission to significantly reduce the rate hike requests from Wisconsin Power and Light, Northern States Power–Wisconsin and Madison Gas and Electric that WIEG says will total roughly $450 million in higher electric and natural gas rates over two years.

“Wisconsin’s ratepayers simply can’t afford additional cost burdens. High electric rates are effectively a tax on all Wisconsin homeowners and businesses,” Stuart said. “Wisconsin’s electric rates have been well above the Midwest average for over twenty years and continue to be above the national average. The requested increases are two or three times the rate of expected inflation, a burden that consumers just cannot bear.”

The group says that Wisconsin had the second-highest residential energy rate in the Midwest last year, behind only Michigan, and the third-highest industrial energy rates, behind Illinois and Minnesota.

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