Illinois Lawmakers Must Reject Higher Utility Rates AND SAY NO TO HB 5234

Right of First Refusal rewards politically connected companies with a monopoly over how, and how much, Illinoisans pay for their electrical grid.

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I am writing to express my deep concern about the proposed legislation, HB 5234, currently under consideration in the General Assembly. As a resident of Illinois, I believe this bill poses a significant threat to fair competition and will lead to higher costs for energy consumers and cause damage to our state's economy.

Competition is a proven driver of lower costs and better quality. Across the country, states have seen the cost to build and improve their electrical grid increase anywhere from 20% - 30% when utilities are able to push through Right of First Refusal (ROFR) legislation. We know those costs will be passed onto us consumers. HB 5234 is part of a nationwide effort to stifle competition which will necessarily increase utility bills for Illinoisans.

At the same time, transmission capacity is expected to explode in the coming decades. The Department of Energy expects that regional transmission will need to increase by 128% by 2035. to accommodate expected growth in demand. Monopoly utilities simply won't be able to accommodate that level of construction.

Given the current and harmful rise in inflation, the last thing Illinoisans need is a law boosting crony capitalism, which makes electric prices more expensive. Our lawmakers should be focusing on ways to reduce electricity costs, not make them higher by enacting a new monopoly and boosting incumbent utility profits.

Please reject HB 5234 to protect Illinois consumers from rising utility costs and to ensure we allow competition to increase the quality of our electric transmission lines.
I am writing to express my deep concern about the proposed legislation, HB 5234, currently under consideration in the General Assembly. As a resident of Illinois, I believe this bill poses a significant threat to fair competition and will lead to higher costs for energy consumers and cause damage to our state's economy.

Sincerely

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Fellow Illinoisans, 

We need your help to protect the interests of Illinois businesses, consumers, and the economy. HB 5234 poses a significant threat to fair competition and will lead to higher utility bills for every person in our state.   

Why Should You Be Concerned? 

Those pushing for this legislation claim that it’s just meant to preserve the state’s authority over how our electrical grid is built. But upon closer examination, this legislation is, in fact, an attempt to reward politically connected companies with a monopoly over how, and how much, Illinoisans pay for their electrical grid.

Cost Concerns: Across the country, states have seen the cost to build and improve their electrical grid increase anywhere from 20% - 30% when utilities are able to push through Right of First Refusal (ROFR) legislation. In 2022, the Midcontinent Independent System Operator (MISO), which manages the electric grid in the Midwestern United States, approved $10 billion in new transmission projects to maintain the grid.  Center-right think tank R Street’s analysis found that ROFR laws already in place increase building costs by over $1.25 billion on a 40-year net present value basis on those projects.  Moreover, that same analysis found that if Illinois were to pass ROFR legislation, project costs would increase by an additional $127 million.

 Legal Concerns: States and Courts are turning away from ROFR in favor of competitive markets. ROFR’s fundamentally anti-competitive policy also makes it a likely suspect for lengthy court challenges. In the past year, in separate decisions, a federal appeals court and a State supreme court blocked ROFR laws in two different States, finding violations of both federal and state constitutions. The federal case was appealed to the Supreme Court, which refused to consider the case leaving ROFR struck down.