Lawmakers debating power grid element of governor’s energy bill

News

April 4th, 2025 by Ric Hanson

(Radio Iowa) – The U-S Department of Justice is suggesting one element of the governor’s energy bill could restrict competition and increase costs for consumers. The proposal would give the state’s major power providers the “right of first refusal” on upgrades to the power grid. Companies like MidAmerican and Alliant would get priority to build new transmission lines that are part of their systems before other companies could bid for the work.

House Speaker Pat Grassley says House Republicans are actively discussing the pros and cons. “When you look at that, there’s two sides of it. There’s one that would say we want to have companies here in Iowa that we know are here, that we can pick up a phone when we have a disaster or outages,” Grassley says. “There’s also the argument that can be made as far as the free market and competition within a highly regulated space.”

Governor Reynolds wrote a letter to the Justice Department, saying she fully supports President Trump’s energy goals, but Reynolds also said the most effective way to ensure Iowa transmission line projects are built efficiently and reliably is by giving Iowa utilities priority on contracts.

Senate President Amy Sinclair says while that “right of first refusal” on building transmission lines is in the governor’s energy bill, it is not the main way the bill seeks to keep utility costs affordable and ensure the power grid is reliable. “Improving our energy policy is essential,” Sinclair said. “…You’ll see us continue to work on that energy policy as the year comes to a close.”

Lawmakers often aim to conclude each legislative session by the end of April, however neither state law nor the Iowa Constitution identify an actual date when the legislature should end.