Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Energy Transmission topic
No spam. Unsubscribe anytime.
Bill to repeal utilities’ right of first refusal for transmission lines draws industry split
Summary
Senate Bill 119 would repeal a 2017 Montana statute that gives incumbent utilities a right of first refusal to build transmission projects in their footprints; proponents argued competition lowers costs while utilities warned of reliability and local maintenance risks.
Senator Wiley Galt opened the committee hearing on Senate Bill 119 by describing the bill as a repealer that would remove the existing right of first refusal that gives incumbent utilities first opportunity to build transmission facilities in their service areas.
Proponents said competition can reduce costs and spur innovation. Anne Hedges of the Montana Environmental Information Center cited a Brattle Group study she provided to the committee, saying competitive bids for transmission projects have been substantially below initial cost estimates. Sharon Segner, senior vice president at LS Power, described her company’s $6 billion national transmission portfolio and told senators competition “is good for consumers” and that competitive processes shift risk from ratepayers to developers. Josiah Neely of the R Street Institute and Henry Kriegel of Americans for Prosperity also urged repeal, citing legal challenges to right-of-first-refusal laws in other states and federal dialogues about the practice.
Opponents, including Mark Lambrecht of the Montana Electric Cooperatives Association, representatives of Montana-Dakota Utilities and Central Montana Electric Power Cooperative, and other utility witnesses, said the 2017 statute exists to ensure the incumbent utility that has personnel nearby to operate and maintain facilities has first opportunity to own and maintain lines. They warned that an out-of-area owner might not be local or prepared to respond quickly to outages. Doug Hardy, who manages Central Montana Electric Power Cooperative’s interests, emphasized maintenance and local response time during extreme weather. Opponents also said incumbent utilities already use competitive processes (RFPs) for construction and that the statute preserves long-term reliability and local operations rather than blocking competition.
Committee members asked questions about who benefits from competition, which markets (SPP/MISO) are implicated, whether local jobs could be affected, and how ownership and operation of lines work after construction. Testimony referenced FERC policy dating to 2011, state-level 2017 legislation, legal rulings in other states, and a Brattle Group cost study.
No formal vote is recorded in the hearing; the sponsor indicated the bill would be considered again during executive action.
