The wide ranging energy bill Governor Reynolds submitted to the legislature includes a provision that’s been the subject of legal wrangling for the past five years. The bill would let the state’s major electricity providers, like MidAmerican and Alliant, have the “right of first refusal” or first chance at building new transmission lines.
Doug Struyk is a lobbyist for the Resale Group of Iowa, which represents 26 public and private utilities. The group argues a competitive bidding process should be used instead.
“RPGI believes that anything that drives up the cost of their power is adverse to their economic development in their small communities,” Struyk said during a House subcommittee hearing on the bill.
Officials from utilities in places like Mt. Pleasant, Anita and Ogden are members of the Resale Group of Iowa. Stryk told lawmakers the Biden and Trump Administration are on record opposing a closed bidding process for transmission lines.
“Because the competition and the ability to have additional capital and ideas that come from independent transmission companies outside of the incumbents in those states drive cost savings and drive speed,” Struyk said.
Dehn Stevens, vice president of transmission and planning for MidAmerican Energy, also testified during the hearing. He said the derecho that hit the state illustrated the value of MidAmerican being able to quickly repair transmission lines.
“We competitively bid all of the materials, supply, equipment construction and labor for all of our project,” he said. “…We’re held accountable to our state and federal regulators on that topic of cost control.”
Kyle Holub of the International Brotherhood of Electrical Workers Local 109 said the union backs giving MidAmerican the first chance on transmission line projects because the company uses local labor.
“Our workers who are here in Iowa, your friends and neighbors who work on these power lines,” he said. “They’re the ones responding when the power goes out.”
The legislature previously passed this policy. However, the Iowa Supreme Court ruled in 2023 that the bill in which it was included was unconstitutional because too many subjects were covered in the bill.