Decision benefits consumers; halts monopolization of Illinois transmission projects
SPRINGFIELD, Ill., Aug. 16, 2023 /PRNewswire/ — LS Power, a leading development, investment and operating company focused on the North American power and energy infrastructure sector, today announced its support for Illinois Governor J.B. Pritzker’s landmark veto of Right of First Refusal (ROFR) legislation that would limit transmission competition and unnecessarily increase the cost of the clean energy transition.
“Governor Pritzker’s decision is the right one for consumers,” said Paul Segal, CEO of LS Power. “Allowing competition for ownership of new transmission projects is essential to advance the energy transition in a cost-effective manner.”
Governor Pritzker’s veto is the first such executive action in the nation to stop an anti-competitive energy transmission ROFR bill. In doing so, Governor Pritzker preserves a competitive backdrop for the development and ownership of additional energy transmission projects in Illinois. Research has shown that competition can reduce the cost of new transmission projects by 20% to 30%.1
Sharon K. Segner, Senior Vice President for Transmission Policy at LS Power, stated, “The protectionist ROFR provisions in HB 3445 stand in the way of more competitive, innovative and cost-effective energy transmission projects – hurting consumers in the process. There should not be monopolies written into state law for the clean energy transition.”
Illinois Joins Other States in Rebuffing ROFR Legislation
While today’s action is the first veto of ROFR legislation, Illinois joins other states in rejecting monopoly transmission ownership. ROFR legislation has been defeated in both Missouri (2023) and Wisconsin (2022), and in March 2023 the Iowa Supreme Court issued a temporary injunction on a similar Iowa ROFR provision.
Several other states, including Texas, have ongoing disputes on the subject of competitive bidding for energy transmission projects. The United States Supreme Court in March 2023 asked the U.S. Solicitor General to file a Merits Brief at the United States Supreme Court on the Texas issue. The brief is expected this Fall.
About LS Power
LS Power is a development, investment, and operating company focused on the North American power and energy infrastructure sector and a leader in competitive transmission processes through LS Power Grid (LSPG). LSPG has more than 680 miles of high-voltage transmission in service, with an additional 200+ miles and multiple substations under construction. LSPG is headquartered in the St. Louis, MO area.
LS Power’s roots date back to 1990, where it began as one of the first non-utility developers, operators and investors in North American power generation. Historically, LS Power has developed, constructed, managed, or acquired more than 47,000 MW of power generation, including utility-scale Solar, Wind, Hydro and Gas-fired facilities. Its current operating portfolio exceeds 19,000 MW.
Furthermore, LS Power’s energy transition platforms include CPower Energy, Endurant Energy, EVgo, Rise Light & Power, and REV Renewables, as well as Waste-to-Energy initiatives.
Across these efforts, LS Power has raised $53 billion in debt and equity financing to support North American infrastructure. Through 2022, assets under LS Power control avoided 93.2 million metric tons of CO2e, equivalent to more than 215 million barrels of oil not consumed or nearly 21 million cars taken off the road for one year.
For more information, please visit www.LSPower.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/ls-power-applauds-illinois-governor-pritzkers-landmark-veto-of-energy-transmission-right-of-first-refusal-legislation-301902889.html
SOURCE LS Power