The End of Cost-Saving Competition?
If saving money is one of your 2025 resolutions, your state legislature might be planning a costly surprise. Legislation called Right of First Refusal (ROFR) could eliminate cost-saving competition that saves consumers 20-30% on electricity costs by handing multi-million-dollar transmission line contracts to utilities without fair bidding.
5 Myths Behind Efforts to Stop Cost-Saving Competition for Electric Transmission Line Projects
“Competition doesn’t work.” Sound surprising? Some argue that multi-million-dollar contracts for transmission line projects should avoid competitive bidding entirely. But competition is a fundamental American value—and common sense. For electric transmission, competition means lower costs, better quality, and more innovative solutions for consumers.
In our latest blog post, “5 Myths Behind Efforts to Stop Cost-Saving Competition for Electric Transmission Line Projects,” we tackle the misconceptions head-on and highlight why open bidding is essential for building a resilient and affordable energy future.
Competition for Electric Transmission Line Projects is Saving Consumers Millions of Dollars
We’re always looking for ways to save money on our electric bills. There’s one way to save money that doesn’t involve freezing in winter or sweating in summer – using a competitive bidding process to select who will build new electric transmission lines. It may not sound exciting, but competition is a proven way to save you money – millions of dollars, in fact. Let’s look at some real-world examples.
Transmission Construction Costs are Increasing Electricity Bills. Why are Some States Rejecting the One Thing that Can Provide Relief?
The cost of building and upgrading electricity transmission lines is skyrocketing. Many of the factors driving up costs for transmission are largely beyond our direct control. Yet there is one thing we can do that’s a proven cost cutter when it comes to transmission construction projects. Unfortunately, some states, including Iowa, Kansas, Missouri, Oklahoma and Illinois, are considering rejecting a cost-savings approach, exposing consumers to higher prices. Read our blog post to learn more.
They Said “No” to Cost-Saving Competition for Electric Transmission Projects. What Happened Next Should Scare You
Minnesota’s Right of First Refusal (ROFR) law, like Frankenstein’s monster has unleashed a costly burden on consumers. By giving utilities exclusive rights to build new transmission lines without competition, the state has seen costs for a key project more than double to $1.14 billion. As a result, Minnesotans are facing inflated electric bills, much like Frankenstein’s monster causing unintended havoc. With states like Iowa, Missouri, Oklahoma, and Kansas considering similar laws, the need for competition in transmission projects is clear to prevent inefficiencies and skyrocketing costs for consumers.
The Power of Competition: How Competitive Bidding Reduces Energy Prices for American Consumers
Consumers save money on their electric bills when competitive bidding is used to award contracts for expensive electric transmission line projects. Competition can save consumers up to $900,000 per mile in costs, a reason why it has bipartisan support. Learn how competition can save you money.
Transmission Costs Are Rising—Here’s What That Means for Your Electric Bill
Electric transmission plays a role in keeping the lights on and how much you pay for electricity. Rising costs of electric transmission are making transmission a concern for many consumers. Learn why transmission costs are rising and how it impacts your electric bill.