KDSN RADIO News
Debate over power grid element in Iowa governor’s energy bill
The U-S Department of Justice is suggesting one element of the governor’s energy bill could restrict competition and increase costs for consumers.
The proposal give the state’s major power providers the “right of first refusal” on upgrades to the power grid. It means companies like MidAmerican and Alliant would get priority to build new transmission lines that are part of their systems before other companies could bid for the work.
According to House Speaker Pat Grassley, House Republicans are “actively discussing” that part of the governor’s bill. “When you look at that, there’s two sides of it. There’s one that would say we want to have companies here in Iowa that we know are here, that we can pick up a phone when we have a disaster or outages,” Grassley told reporters. “There’s also the argument that can be made as far as the free market and competition within a highly regulated space.”
In a letter to President Trump’s Justice Department, Governor Reynolds said she “fully supports” Trump’s goal of ensuring the U.S. has a reliable, diversified, and affordable energy supply. Reynolds added that “the most effective way” to ensure Iowa transmission line projects are built “efficiently and reliably” is by giving Iowa utilities priority on contracts.
Senate President Amy Sinclair said while that “right of first refusal” on building transmission lines is part of the governor’s energy bill, it is not the main way the bill seeks to keep utility costs affordable and ensure the power grid is reliable.
“Improving our energy policy is essential,” Sinclair said Thursday during a news conference. “…You’ll see us continue to work on that energy policy as the year comes to a close.”
Lawmakers often aim to conclude each legislative session by the end of April, however, neither state law nor the Iowa Constitution identifies an actual date when the legislature should end.
