MADISON — State Rep. Dan Knodl, R-Germantown, criticized the introduction of the Wisconsin Energy Reform Act (WERA), on Wednesday, saying the bill potentially restricts competition in transmission projects and could violate principles of competition.
Knodl also called out legislative Democrats and Gov. Tony Evers, who have remained silent about the bill since its introduction by legislative Republicans on Tuesday.
"The ‘Wisconsin Energy Reform Act’ (WERA) just dropped, and with it comes a heavy dose of confusion, constitutional questions, and — surprise! — political silence from Governor Tony Evers," Knodl said in his Wednesday release. "Let’s not dance around it: is Governor Evers backing this thing or not? Because whether it’s AB25/SB28 or this new WERA acronym, Democrats are going to have to cross the aisle and vote for it. And the big question is — why?"
"Could it be because the American Transmission Company (ATC) only hires union labor for their multi-billion-dollar projects? If so, that’s a mighty convenient reason to lock out 70% of Wisconsin’s construction workforce — non-union workers — who’d be left watching from the sidelines while the money flows right past them."
The Daily News reached out to Evers’ office for comment on WERA and Knodl’s assertions, but did not receive a comment by deadline.
WERA was introduced by legislative Republicans on Tuesday. The bill would create sweeping energy reform legislation, according to a joint release from the bill’s Republican supporters.
WERA initially also included a piece of legislation known as right of first refusal (ROFR), but that was dropped from the WERA bill, as it likely would die in the Assembly Energy and Utilities Committee and not be brought before the Assembly for a vote.
According to state Rep. Jerry O’Connor, RFond du Lac, who is the lead author on the bill, the WERA bill is intended to "secure a more competitive landscape for energy companies and ratepayers in Wisconsin," as the bill includes bidding controls for interstate and intrastate electrical transmission lines that would increase the accountability of developers and owners.
"This is the most comprehensive energy reform package brought forward in Wisconsin in decades," O’Connor said in a joint release. "By instituting actual competitive bidding standards, we are poised to be a national leader in utility transmission practices."
According to O’Connor’s joint release, current state law doesn’t require competitive bidding for utility construction, and the Federal Electricity Regulatory Commission’s (FERC), which has sole jurisdiction over the rate of return that operators of high-capacity transmission lines are allowed to earn, practices don’t require projects be awarded to the lowest bidder.
According to Knodl, some legislative Republicans have reached out to the Trump Administration’s Department of Justice Antitrust Division with questions about the bill’s potential to restrict competition in transmission projects.
"If this legislation truly promotes fair and open markets, then why does it require further legal review to ensure it doesn’t violate fundamental principles of competition?" Knodl asked in his release. "Here’s the kicker: this bill could slam the brakes on competition in the transmission sector, yet somehow, there’s barely a peep from the press."
According to state Rep. Rob Brooks, R-Saukville, the current process in Wisconsin is not competitive.
"For anyone to somehow believe that our current process for siting transmission lines is competitive or free market is just wrong," Brooks said in the joint release. "Wisconsin can show the rest of the nation how we can inject competitive bidding into the construction process for transmission lines and hopefully lower cost for consumers."
According to the joint release, WERA also addresses farmland preservation with a "sustainable, landowner-centered, business-friendly approach" for wind and solar sitting, models after former Gov. Jim Doyle’s PACE program.
"WERA will require that for each acre of high-productivity farmland that is used for renewable energy projects, multiple acres of farmland will be protected for future agricultural use," said the joint release.
Low-carbon energy strategy and nuclear energy reforms are also included in WERA, with incentives for utilities to develop nuclear energy in Wisconsin.
According to Knodl, the bill, which will be heard in the Energy and Utilities Committee in the coming days, also doesn’t have a senate author, currently.
"That’s like trying to fly a commercial jet without a copilot," Knodl said in his release. "Do you want to be aboard that plane? Yet, somehow, it’s still cruising along."
