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House committee hears split testimony on bill narrowing utilities’ right of first refusal

House Energy, Technology, and Federal Relations Committee · March 26, 2025
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Summary

The House Energy, Technology and Federal Relations Committee heard testimony on Senate Bill 355, which would limit a 2017 right-of-first-refusal (ROFR) law for certain transmission projects; supporters said competition could lower costs, opponents including Montana Dakota Utilities warned the change could threaten reliability in Eastern Montana. No committee vote was taken.

The House Energy, Technology and Federal Relations Committee heard competing arguments on Senate Bill 355, a measure that would narrow a 2017 statutory right of first refusal (ROFR) for certain electric transmission projects and require competitive bidding for larger projects.

Senator Wiley Galt, sponsor, described SB355 as “a compromise” that removes most ROFR protections while preserving them for electric cooperatives and adding building and design requirements. He told the committee the change is intended to spur competition and help future ratepayers amid rising energy demand.

Opponents questioned the bill’s operational impacts. Mike Green, an attorney representing Montana Dakota Utilities (MDU),…

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