The electric grid operator for the upper Midwest has tapped two out-of-state firms to build high-voltage power lines in Wisconsin, bypassing joint proposals that included ATC and Dairyland Power Cooperative.
The decisions came after the Legislature failed to pass legislation that was designed to give utilities with existing infrastructure in Wisconsin the first crack at building the lines. Conservative groups opposed the bill — dubbed right of first refusal — arguing allowing them to be competitively bid would drive down the cost of the work.
MISO selected Ohio-based Viridon Midcontinent LLC for a 106-mile 765 kV line in southeastern Wisconsin. The company’s bid of $349 million for the work was less than the other three proposals submitted for the line.
The Midcontinent Independent System Operator said in the announcement it had concerns that Viridon had understated the capital costs, but “offered cost containment strong enough to likely ensure the lowest cost to the ratepayer even if its estimated costs rose significantly.”
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Meanwhile, it tapped Illinois-based Transource Inc. for a 188-mile 765 kV line in southwestern Wisconsin that starts in Bell Center and runs to the Illinois state line.
Transource submitted two proposals for the line, both just over $1 billion. Another developer had a cheaper alternative at $808 million, but MISO said it selected Transource because it had “unmatched 765 kV capabilities, a robust design that reduces right-of-way impacts, and a clear plan for construction and operations.”
Todd Stuart, executive director of the Wisconsin Industrial Energy Group, praised MISO’s decision. The nonprofit consumer advocacy trade association opposed ROFR.
“Competition works,” Stuart said. “It makes you sharpen your pencils. The selection report speaks for itself. The winning bids had superior cost containment measures to ensure the lowest cost to ratepayers. The winning bids also had the lowest return on equity.”
Dairyland Power Cooperative and American Transmission Co. put in a joint bid on the southeastern Wisconsin line. They also joined with Ameren Transmission Co. of Illinois and Power Cooperative GridLiance Heartland LLC to bid on the project that will start in southwestern Wisconsin.
The MISO announcement listed the overall value for each bid that was submitted for the projects. But it didn’t identify the companies that submitted each proposal.
Each of the submitted bids came in under the nearly $1.5 billion that MISO had projected the project starting in southwestern Wisconsin to cost and the $662 million for the southeastern Wisconsin project.
Ellen Nowak, ATC’s vice president of regulatory and government affairs, said the company was disappointed in the decision, which she predicted would end up costing Wisconsin ratepayers more in the long run.
As part of the company’s push for ROFR, ATC argued the legislation would allow incumbent utilities to spread more of the operational costs of the coming transmission lines over the 14 states that are part of MISO. She said Viridion and Transource won’t have that capability, saddling Wisconsin ratepayers with all the operational costs.
“It’s certainly not the result we wanted, and we think it’s not the best result for Wisconsin ratepayers,” Nowak said.
MISO in late 2024 approved a $21.8 billion investment for 24 projects across the 14-state region that includes Wisconsin with the expectation they will go into service from 2032-34.
