Madison –The Wisconsin Industrial Energy Group, Inc. (WIEG) the non-profit association representing 25 of Wisconsin’s largest energy consumers and 35,000 jobs today urged lawmakers to reject renewed efforts to revive the transmission Right of First Refusal (ROFR) legislation. It has been defeated in two consecutive sessions and is expected to be introduced in the coming weeks. The ROFR legislation would remove competitive protections and would result in higher costs for consumers.
“WIEG’s board of directors and members remain unified in opposition to the transmission Right of First Refusal legislation,” said Todd Stuart, executive director of WIEG. “A ROFR law would only add costs for customers in Wisconsin and add additional rate pressure.”
Wisconsin, which once paid among the lowest rates in the country for electricity, now pays among the highest in the Midwest, a cost disadvantage that is essentially a heavy tax on Wisconsin’s manufacturers. Wisconsin’s electric rates have now exceeded the Midwest average for over 20 years. WIEG released a series of data points today demonstrating how clearly uncompetitive Wisconsin’s rates have already become and called for action to end this dubious distinction.
“Our members, Wisconsin’s largest manufacturing companies, pay more for electricity than the average rates paid by their competitors in other Midwest states and above the national average,” continued Stuart. “That’s a big cost disadvantage for our members as they pay well over $1 million a month for electricity, while trying to remain competitive in their respective industries.”
Manufacturing currently employs nearly half a million people in Wisconsin with above average wages across the state and is one of the highest per capita of manufacturing jobs in the country. Manufacturing provides $66 billion annually or roughly 20 percent of the state’s gross domestic product. With this huge industry impact on our state, high electricity rates have a proportionately larger impact on our businesses and residents.
Wisconsin’s utilities have recently announced unprecedented levels of new capital plans over the next five to ten years, which are ultimately paid for by ratepayers. New public capital plans include over $18 billion for generation, battery storage and distribution, plus a minimum of $9 billion in new transmission. Over 4,000 MW of fully dispatchable generation resources have been retired over the last decade leaving billions in “stranded assets.” The Wisconsin Public Service Commission recently authorized roughly $550 million in additional electric and natural gas rates for 2025 and 2026.
With the unprecedented levels of utility capital plans layered on top of chronically high rates, WIEG called on policymakers to help regain a competitive position. A piece meal approach is not adequate for economic regulation and more competitive elements are necessary to control costs. In the coming months, the PSC must have a critical review of additional rate increase requests.
As an immediate step, lawmakers must reject renewed efforts to revive the transmission ROFR legislation. The ROFR legislation would remove competitive protections and would result in higher costs for consumers.
Rising electricity prices for industrial customers not only affect those industrial customers but supporting commercial customers and residential customers as well. Unwarranted increases to industrial rates will eventually harm not only the industrial businesses, but ultimately other customers and customer classes.
“Wisconsin’s ratepayers simply can’t afford additional cost burdens.” Stuart concluded. “Wisconsin’s electric rates have been well above the Midwest average for over twenty years and continue to be above the national average. Energy inflation is a real issue in Wisconsin that will only be made worse by ROFR legislation.”
WIEG is a non-profit association of 25 of Wisconsin’s largest energy consumers. The group has long advocated for policies that support affordable and reliable energy. Since the early 1970s, WIEG has been the premier voice of Wisconsin ratepayers and an engine for business retention and expansion. Each year its members collectively spend more than $500 million on electricity in Wisconsin and employ 35,000 residents of Wisconsin. Most of these companies have electric bills of over $1 million each month, and it is one of their top costs of doing business.
For more information about WIEG, please visit our website: https://wieg.org
