WASHINGTON – The Electricity Transmission Competition Coalition welcomed the decision by the Missouri legislature to not take action to advance SB 568 before the legislative session expired. SB 568 is another example of an anti-consumer Right of First Refusal law (ROFR) that have been introduced across the country to pad the pockets of utilities and harm the interests of electricity consumers.

In a statement, Paul Cicio, Chair of the Electricity Transmission Competition Coalition, said: “I want to thank the Missouri legislature for seeing what SB 568 really is, a bill that would prevent expensive transmission projects from being competitively bid, which increases electricity costs on consumers for decades to come. Without competition, the monopoly utility does not have an incentive to reduce costs. Utilities make money by spending money and then get a 10-12 percent ROE on top of it.

This is a win for consumers in Missouri and the latest in a series of victories for consumers across the country. Laws such as these are being rejected by lawmakers and judges and consumers will be the beneficiary. Electricity transmission competition is the key to unlocking lower electricity prices while we build-out the grid for decarbonization.”

Electricity transmission competition has been shown to lower costs by as much as 40%.[1] ROFR laws have been rejected in States across the country, including in a recent judgment by the Iowa Supreme Court in which it condemned the law as “quintessentially crony capitalism”.[3] For lawmakers to deliver on their promise to constituents, they must back transmission competition not only to lower costs but to spur innovation and unleash American energy.

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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 80 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] MISO Network Integration Transmission Service Charges: https://www.misoenergy.org/markets-and-operations/settlements/ts-pricing/#t=10&p=0&s=&sd=

[2] Sourced from U.S. Energy Information Administration Electric Power Monthly

[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