Iowa Lawmakers Must Reject Energy Monopolies

Right of First Refusal Laws Hurt Iowa Consumers

Sign The Letter

Dear Official,

I urge you to oppose the ROFR provision contained within HSB 123 and SSB 1112, also known as the Governor’s Energy Bill, as it threatens fair competition and could increase consumer costs, harming our economy.

Why ROFR is Harmful to Iowa:
- Increased Consumer Costs: ROFR legislation eliminates competitive bidding, leading to higher costs for transmission projects. Studies show that states with ROFR laws see transmission costs increase by 20% to 30%. These costs are passed directly to consumers, resulting in higher electricity bills for Iowans.
- Economic Impact: Higher energy costs can stifle economic growth, deterring new businesses and industries that rely on affordable energy. According to the R Street Institute, reinstating ROFR could add an additional $387 million to project costs over 40 years, with $46 million specifically impacting Iowa residents.
- Lack of Innovation: Without competition, there's less incentive for utilities to innovate or seek cost-effective solutions, potentially leading to outdated infrastructure and missed opportunities for integrating new technologies.
Legal Precedents Against ROFR:
- State Actions: Similar attempts at ROFR have been rejected in neighboring MISO states like Wisconsin and vetoed in Illinois, favoring competition to protect ratepayers.
- Federal and State Court Decisions: The Iowa Supreme Court in 2020 found ROFR-like laws to be "quintessentially crony capitalism" and halted their implementation. More recently, a federal court in Texas ruled ROFR unconstitutional for violating interstate commerce, a decision the U.S. Supreme Court chose not to review, setting a strong legal precedent against such laws.
Why ROFR is Harmful to Iowa:

Call to Action:

Iowa consumers need your leadership to oppose ROFR legislation which would increase costs and stifle innovation, moving us back towards monopoly power. Competition has clear benefits in reducing costs and improving service quality, ensuring a fair market that serves all Iowans, not just a few. Please remove ROFR out of the Governor’s Energy Bill to uphold the competitive principles that are fundamental to our economy and rate payers.

Sincerely,

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Oppose Right of First Refusal (ROFR) in Iowa

Why ROFR is Harmful to Iowa:

Increased Consumer Costs: ROFR legislation eliminates competitive bidding, leading to higher costs for transmission projects. Studies show that states with ROFR laws see transmission costs increase by 20% to 30%. These costs are passed directly to consumers, resulting in higher electricity bills for Iowans.
Economic Impact: Higher energy costs can stifle economic growth, deterring new businesses and industries that rely on affordable energy. According to the R Street Institute, reinstating ROFR could add an additional $387 million to project costs over 40 years, with $46 million specifically impacting Iowa residents.
Lack of Innovation: Without competition, there's less incentive for utilities to innovate or seek cost-effective solutions, potentially leading to outdated infrastructure and missed opportunities for integrating new technologies like renewable energy more efficiently.

Legal Precedents Against ROFR:

State Actions: Similar attempts at ROFR have been rejected in neighboring MISO states like Wisconsin and vetoed in Illinois, favoring competition to protect ratepayers.
Federal and State Court Decisions: The Iowa Supreme Court in 2020 found ROFR-like laws to be "quintessentially crony capitalism" and halted their implementation. More recently, a federal court in Texas ruled ROFR unconstitutional for violating interstate commerce, a decision the U.S. Supreme Court chose not to review, setting a strong legal precedent against such laws.

Contact Your Lawmaker: Encourage them to remove ROFR from the Governor's Energy Bill. Your voice matters in shaping a fair, competitive energy market in Iowa.