SPRINGFIELD, ILL (WICS/WRSP) — Two consumer groups are opposing a proposal by Ameren Illinois that would give the company the right of first refusal on transmission line construction projects in its territories.
This proposal would eliminate competitive bidding processes.
Lawmakers approved this legislation last spring. But in August, Governor Pritzker vetoed the portion that deals with the right-of-first refusal.
Now, consumer groups are speaking out saying lawmakers should uphold the governor’s veto.
As lawmakers head back to the Capitol next week, consumer groups are urging them to uphold a veto on Ameren Illinois’ “right of first refusal” legislation. The proposal would give Ameren Illinois the right of first refusal on transmission line construction projects, eliminating the competitive bidding process in its territories.
Opponents said this would give Ameren a “monopoly” over those projects, potentially making them more expensive.
“Building new transmission lines is important with these projects, need to be cost-efficient and that’s why competitive bidding is necessary. Giving Ameren a monopoly like this would just be like another way of giving them a rate hike,” Bryan McDaniel, Citizens Utility Board, said.
The Citizens Utility Board said this legislation could raise costs for electricity consumers.
The right of first refusal means Ameren would have the option of making an offer before anyone else is able to.
But Ameren Illinois said without this proposal, out-of-state developers could be hired which could raise energy bills,
“Out-of-state developers are threatening to take jobs from Illinois workers and raise energy bills for Illinois consumers. Without ROFR, much-needed transmission construction will be unnecessarily delayed and put the benefits of the clean energy transition at risk. To do it fast and do it right, with accountability for results, transmission line construction should be managed by trusted Illinois-regulated local utilities with a proven track record of success, who already competitively bid and build with local contractors and union workers,” Tucker Kennedy, Director of Communications for Ameren Illinois, said in a statement.
“We’re trying to make sure legislators know that they should not vote to override the governor’s veto because this veto is actually going to help save consumers money in the long run,” McDaniel said.
The International Brotherhood of Electrical Workers Local 51 in Springfield said the current process is competitive bidding, so changing it still results in a monopoly.
“Even if we have a competitive bid, they are going to have a monopoly on that transmission,” Corey Stone, with the IBEW Local 51, said.
However, both Ameren and IBEW Local 51 said the right-to-first refusal clause would also be set to end at the end of 2024.
“Depending on how things play out leading up to next week, if the override is the way, we see the path forward to make sure that our members continue to build these lines like they always have which we think is in the best interest of consumers,” Stone said.
In order to overturn the governor’s veto, three-fifths of the general assembly would need to vote to do so. But lawmakers also have the option of amending the bill to make the changes the governor wants and passing it again during the veto session.
The fall veto session for both the House and Senate is set to start next week.
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