Iowa Lawmakers Must Reject Energy Monopolies

I am writing to urge that you oppose HF2551 and SF2372, currently under consideration in the legislature. As a resident of Iowa, I believe these bills pose a significant threat to fair competition and will lead to higher costs for energy consumers and cause damage to our state's economy.

Cost Concerns: Competition is a proven driver of lower costs and better quality. Across the country, states have seen the cost to build and improve their electrical grid increase anywhere from 20% - 30% when companies are able to push through Right of First Refusal (or ROFR) legislation. We know those costs will be passed onto us consumers. HF2551 and SF2372 are part of a nationwide effort to stifle competition and increase utility bills for Iowans. We believe in the power of free-market competition to benefit businesses and consumers alike.  

Furthermore, center-right think tank R Street found that, “Were Iowa to reenact a ROFR, the cost of these projects alone would increase by $387 million on a 40-year net present value basis, with $46 million in additional costs for Iowa residents alone.' Prices have been rising throughout the economy, and electricity price increases have outpaced even the overall rate of inflation in recent months. If Iowa eliminates the check on wasteful spending that competition provides, consumers would suffer increased costs.”

Legal Concerns: States and Courts are turning away from ROFR in favor of competitive markets. ROFR legislation has been turned down in MISO states like Wisconsin and vetoed by the Illinois Governor in favor of competition to protect ratepayers. The most recent federal court case in December 2023 found the Texas ROFR unconstitutional for violating interstate commerce, and the US Supreme Court refused to take up the appeal leaving the ROFR stuck down.

Please reject HF2551 and SF2372 to protect Iowa consumers from rising utility costs and to ensure we allow competition to increase the quality of our electric transmission lines.