Competition-Limiting Bill Criticized As Protectionist And Inflationary

Assembly Bill 470, legislation now pending in the Wisconsin Senate and Assembly, would limit competition for new utility transmission line construction projects by mandating that incumbent utility companies be entitled to the right of first refusal (ROFR) on new projects in the state. Critics of Wisconsin’s ROFR bill say it’s a protectionist measure whose enactment would have the state shielding incumbent utility companies from competition, with the result being higher costs for ratepayers.

“Some states have instituted their own ROFR requirements, while others have rejected them,” writes Josiah Neeley, resident energy fellow and Texas state director for the R Street Institute. “Utilities in non-ROFR states continue to push for them, while consumer advocates, free market groups and some environmental advocates are opposed.”