A group of lawmakers has solicited the opinion of a section chief in the U.S. Department of Justice (DOJ) Antitrust Division’s on Republican-authored ROFR legislation like the approach some lawmakers in Iowa did.
We wanted to share Iowa Governor Kim Reynolds’ recent letter to DOJ that provides a very articulate response on why Right of First Refusal (ROFR) legislation is in the best interest of Iowans, supports President Trump’s goals of reducing federal regulatory burdens, expediting infrastructure projects, and protecting energy consumers from cost overruns and federal overreach. It is attached for your review.
Governor Reynolds’ letter puts the Division’s comments to Iowa lawmakers in its proper context and fact checks them. Her response applies in the same way to this week’s request from the Wisconsin lawmakers.
- The Division’s position is not new. During the Obama administration, the Division took the same approach. They have consistently supported federally managed bidding for certain transmission projects in the Upper Midwest.
- ROFR laws enable states to codify competition while protecting landowners. Unlike the cumbersome federal bidding approach, ROFR protects landowners by requiring bidding only after specifications and routes have been communicated to landowners and easements are in place.
- Current law supports competitively bidding the construction (not ownership) of transmission plant expansion, as required in both Iowa and Wisconsin’s ROFR. This approach aligns with fundamental free-market principles.
At a time when Wisconsin is becoming a hot spot for AI development, the adoption of a lengthy federal bidding process raises costs and delays projects, would put our state at a competitive disadvantage, and costs our consumers over $1 billion.
Wisconsin legislators have an opportunity to put Wisconsin first, enhance grid reliability, affordability, attract economic development and provide landowner protections by supporting ROFR. Thank you for supporting Wisconsin ratepayers by supporting ROFR in Wisconsin.
