These State Lawmakers Want to Make Energy Prices Higher for Consumers

Right of First Refusal laws are wonderful for lining the pockets of corporations, but not so great for consumers.

Photo by Andrey Metelev on Unsplash

Have you ever heard of Right of First Refusal Laws (ROFR)? Chances are, you are living in a state with this type of law and it’s costing you quite a bit on your electricity bills.

However, if you live in Wisconsin, you haven’t had to deal with these laws – yet.

Wisconsin lawmakers are once again trying to push through Right of First Refusal (ROFR) legislation, a move that would hand out sweetheart deals to utility companies while sticking consumers with higher energy bills.

Senate Bill 28 (SB 28) and its Assembly counterpart, AB 25, would give in-state companies exclusive bidding rights on electric grid projects before out-of-state firms can even throw their hats in the ring. While proponents claim this measure protects Wisconsin businesses, opponents argue it’s nothing more than a giveaway to utility lobbyists at the expense of ordinary ratepayers.

The legislation is being pushed by Senate Majority Leader Devin LeMahieu (R-Oostburg) and State Rep. Kevin Petersen (R-Waupaca), backed by major business groups like the Wisconsin Electrical Cooperative Association and the Wisconsin Economic Development Association.

Supporters argue that ROFR laws would prevent Wisconsin ratepayers from footing extra costs as other states implement similar policies. Ellen Nowak, vice president of American Transmission Company, a local grid builder and ROFR supporter, claimed that “Adopting ROFR in Wisconsin helps protect ratepayers from getting hit with a $1 billion bite at the same time other states shift more cost to us.”

Sounds good, doesn’t it? Not so fast.

This argument doesn’t hold water. In reality, ROFR laws do exactly the opposite—they eliminate competition, drive up costs, and ultimately hurt consumers. Even some Republican lawmakers are calling out this cronyist scheme for what it is.

State Sen. Steve Nass Blasts ROFR as ‘Crony Capitalism’

State Senator Steve Nass (R-Whitewater) didn’t hold back in a scathing email to his colleagues, calling SB 28 a blatant giveaway to special interests. He slammed Republican leadership for “ramming” the bill through to “placate the powerful special interests in the Wisconsin utility industry.” The lawmaker went further, stating that “ROFR is nothing more than the most blatant example of everything wrong with politics in Wisconsin.”

He also exposed the heavy influence of corporate lobbying in pushing this bill forward. “A very powerful and well-financed special interest is heaping massive amounts of influence on legislators of both parties to buy what they want in the form of SB 28/AB 25,” Nass wrote. He accused Republican leadership of trying to cut deals behind closed doors to force the bill through, even if it meant working with Democrats to override opposition from rank-and-file Republicans.

ROFR Means Higher Bills for Wisconsin Families

The most pressing issue with ROFR is its impact on energy prices for consumers. When the state eliminates competition, there is no incentive for in-state utility companies to keep costs low. Out-of-state firms might offer better technology, more efficient energy infrastructure, or simply lower prices, but ROFR blocks them from even making an offer.

This means Wisconsinites won’t be getting the best service for the best price. Meanwhile, corporations and lobbyists will be the only winners in this equation.

State Rep. Ty Bodden (R-Stockbridge) pointed this out last year when he voted against a similar bill, warning that “this would hurt working families by eliminating fair competition for work and thus leading to higher utility bills for businesses and families.”

With inflation already squeezing American households, the last thing Wisconsin consumers need is an artificially inflated energy market, especially when Americans are paying more for groceries, gas, and other necessities.

The Fake Fix: A ‘Compromise’ That Solves Nothing

In an effort to secure more votes, legislators introduced an amendment (SA 1 to SB 28 and AA 1 to AB 25), claiming it would make the bill more palatable. But Nass exposed this so-called compromise as a fraud, stating that the amendment was “developed by the utility lobbyists” and calling it “dubious in legal terms and a sham to give Republicans cover to vote for ROFR.”

This is a classic political trick—when a bad bill faces opposition, lawmakers add a meaningless amendment and pretend it’s a fix. But the reality is, ROFR remains what it has always been: a rigged system designed to benefit big business at the expense of consumers.

The Bottom Line: Kill the ROFR Bill

ROFR laws are not about protecting Wisconsin businesses—they are about protecting monopolies. They stifle competition, drive up prices, and hand power to politically connected utility companies. Sen. Nass is right: this is exactly what’s wrong with politics.

If Wisconsin Republicans truly care about free markets, competition, and protecting consumers from government-fueled price hikes, they should reject this cronyist power grab and kill the ROFR bill once and for all.

But this isn’t just a Wisconsin matter. Several states have already passed, or are considering passing, similar legislation, which means more Americans are paying higher prices due to the lack of competition. This is why it is so important to pay attention to what your state governments are doing.

Check and see if your state has such a law. If it doesn’t, you can be sure there are lawmakers working to make it a reality – and this is why you must be engaged in the process.