Consumers Urge State and Federal Support for Competitive Bidding Process for New Transmission Projects to Lower Electricity Costs for Households and Businesses.

WASHINGTON – Inflation data released by the U.S. Bureau of Labor Statistics today showed another month of skyrocketing electricity inflation, while overall inflation slowed. The consistent price increases have put consumers under financial pressure each month in the form of higher utility bills. The March CPI measured annualized electricity services inflation at 10.2%, in contrast to overall CPI, which increased by 5% on a 12-month basis. The soaring cost of electricity is a large reason why 1/6 of U.S. households are behind on their energy bills.

In a statement, Paul Cicio, Chair of the Electricity Transmission Competition Coalition, said: “Amid skyrocketing electricity prices, FERC continues to abdicate its responsibility to require transmission projects be competitively bid. For the sake of the consumer, I hope that FERC will look at these inflation numbers and support transmission competition to bring lower electricity prices to Americans across the country.”

The Iowa Supreme Court recently rejected an anticompetitive right of first refusal law saying that it was “crony capitalism.”[1] The Court pointed out that competition was the clear solution to upgrading the electrical grid while lowering costs stating, “Common sense tells us that competitive bidding will lower the cost of upgrading Iowa’s electric grid and that eliminating competition will enable the incumbent to command higher prices.”[2]

Competitively bid electricity transmission projects have been shown to reduce costs to consumers by up to 40 percent according to The Brattle Group.[3] The U.S. will need to spend $2.1 trillion on transmission to reach its net-zero goals by 2050 according to Princeton University which means that electricity transmission competition could save as much as $840 billion for Americans.[4]

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About the Electricity Transmission Competition Coalition

The Electricity Transmission Competition Coalition (ETCC) is a broad-based, nation-wide coalition committed to increasing competition in America’s electricity transmission infrastructure. We advocate for common-sense policies and solutions that result in competitively priced transmission projects, which reduce energy costs for all ratepayers – from large manufacturers to residential consumers. The ETCC represents a diverse group of more than 86 companies and organizations from all 50 states, including manufacturing groups, retail electric consumers, state consumer advocates, public power representatives, think tanks, and non-incumbent transmission developers.

For more information, visit: www.electricitytransmissioncompetitioncoalition.org.

Press Contact:
Julian Graham
jgraham@signaldc.com

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[1] LS POWER MIDCONTINENT, LLC and SOUTHWEST TRANSMISSION, LLC vs. STATE OF IOWA, IOWA UTILITIES BOARD, GERI D. HUSER, GLEN DICKINSON, and LESLIE HICKEY

[2] LS POWER MIDCONTINENT, LLC and SOUTHWEST TRANSMISSION, LLC vs. STATE OF IOWA, IOWA UTILITIES BOARD, GERI D. HUSER, GLEN DICKINSON, and LESLIE HICKEY

[3] Brattle Group: Cost Savings Offered by Competition in Electric Transmission, https://www.brattle.com/wp-content/uploads/2021/05/16726_cost_savings_offered_by_competition_in_electric_transmission.pdf

[4] NET-ZERO AMERICA: Potential Pathways, Infrastructure, and Impacts, Princeton University, https://netzeroamerica.princeton.edu/?explorer=year&state=national&table=2020&limit=200