Want cheaper, more reliable power? Pass right of first refusal legislation. | Opinion
As governor, I didn’t beat around the bush when it came to addressing big issues. I tackled them head on. One of those critical issues was Wisconsin’s electricity supply. In the 1980s and 1990s, Wisconsin experienced severe shortages of electric transmission capacity to move power from where it was produced to where it was needed. I was determined to fix it.
Together, the legislature and my administration implemented many reforms to address the situation. One of those was the creation of a single transmission owning entity for eastern Wisconsin. This ensured the company had only one mission: build, own and operate transmission assets in Wisconsin. The reliability of the transmission system in Wisconsin has improved markedly since those days.
In 2011, the federal government thought they had a better idea: submit the ownership of major lines to a bureaucratic, federally overseen bidding process open to any entity with access to capital and a desire to profit - in Wisconsin or any other state. It has not worked out as planned.
The federal government is complex. It’s one-size-fits-all answer to problems often creates unintended unproductive outcomes. Rather than encouraging competition, it has resulted in chaos. Not what’s needed in electricity production and transmission.
In fact, just last month, Maine had to cancel a line which was approved under a similar “competitive” process because the winning bidder could not meet the requirements of the contract. The result? No new, planned, and necessary, transmission line for Maine or the grid. Now it is back to square one. More time, more money, continued reliance on an already stressed eastern grid. How is that a win for ratepayers? Or those that just want to turn the lights on. There are numerous other examples of the well-intentioned but flawed process gone wrong.
Right of First Refusal Act requires competitive bidding
The only way states, including Wisconsin, can defend themselves from this clearly flawed and costly process, costs passed on to ratepayer, is to pass and make law what is referred to as a Right of First Refusal, or ROFR Act. Thoughtful legislators have introduced and Wisconsin is now considering just such a law. I believe this is in the best interest of electric reliability and lower rates for Wisconsin. And, it will drive the marketplace to solve problems for our electrical grid and ratepayers, not create them like the federal process currently does.
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ROFR requires the state’s major electric transmission decisions are made by Wisconsin for Wisconsin. The law would also require Wisconsin’s transmission owning companies to competitively bid out every aspect of the construction process for every covered project. That’s where competition happens and the real savings occur. And, planned reliability is maintained. With ROFR, customers would be spared a time consuming and costly process imposed by the federal government. With the new law, Wisconsin companies will be able to recover more of their costs from other states making Wisconsin competitive to all other states. Michigan and Minnesota have already taken this step.
I have and always will keep Wisconsin’s interests first. Let’s pass and sign ROFR into law.
Tommy G. Thompson was elected governor of Wisconsin four times, serving from 1987 to 2001. In 2001, he became Secretary of the U.S. Department of Health and Human Services, a post he held for four years.
This article originally appeared on Milwaukee Journal Sentinel: Tommy Thompson supports power grid bill to boost market approach
