MISSOURI – Fifty-six state legislators from Iowa [1], Kansas [2], Montana [3], Missouri [4], and Wisconsin [5], including Missouri Senator Tracy McCreery and Representative Ben Keathley, have submitted letters to urge the Federal Energy Regulatory Commission (FERC) to reject a complaint filed by incumbent utilities seeking a five-year moratorium on transmission competition in the MISO and SPP regions.
These letters make clear that state leaders will not allow incumbent utilities to go around their backs to prevent competition to increase their profits and increase electric rates on captive consumers. Their collective action highlights widespread support across the country for protecting competition and holding utilities accountable to lower costs.
The complaint, filed by 12 incumbent utilities in April, would prevent utilities from having to compete to build new transmission projects in SPP and MISO for five years, raising electricity prices across 19 states. Without competition, a monopoly electric utility has zero incentives to reduce costs. The more they spend the more profit they make. The state letters stress that FERC should reject the complaint and enforce Order 1000, a federal policy that requires utilities to compete with one another to build new transmission lines, ensuring fair costs for consumers.
Americans know that competition reduces costs. A recent release by R Street highlights a critical finding that completed competitive transmission projects are about 30% less expensive than comparable incumbent utility projects. [6]
Paul Cicio, Chair of the Electricity Transmission Competition Coalition (ETCC), stated: “Over the last few months, state legislatures have shown up to protect their constituents from rising electricity prices and monopolistic anti-competitive practices. Now, the decision rests at the FERC. Will FERC side with American consumers to protect competition or will they cave to utility interest and allow for incumbent utilities to increase prices?”
The complaint, filed by utilities including: International Transmission Co; Michigan Electric Transmission Co; ITC Midwest; ITC Great Plains; Ameren Services; American Transmission Co; Cleco Power LLC; Entergy; Evergy Inc; Oklahoma Gas & Electric; Empire District Electric Company; and Xcel Energy, seeks to prohibit competition for five years despite evidence that competition improves cost efficiency and schedule discipline.
The Electricity Transmission Competition Coalition supports the state legislators’ call for FERC to reject the complaint and uphold competitive transmission markets, protecting ratepayers and ensuring that electricity costs remain fair and transparent.
For more information, visit: www.electricitytransmissioncompetitioncoalition.org.
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 95 companies and organizations from all 50 states, including manufacturing groups, retail electric consumers, state consumer advocates, think tanks, and non-incumbent transmission developers.