Economic Liberties Applauds Montana’s Repeal of Law That Benefitted Monopoly Utilities and Harmed Ratepayers
Washington, D.C.– In response to Montana repealing its Right of First Refusal law – which has allowed monopoly utilities to maintain exclusive control over new power line projects, leading to higher costs for ratepayers – the American Economic Liberties Project released the following statement.
“For too long, monopoly utilities have leveraged ROFR laws to block competition and inflate cost in transmission development,” said Megan Robertson, Utilities Organizer for the American Economic Liberties Project. “Montana’s repeal of ROFR is a pivotal step toward ensuring that the state’s electricity grid is developed with accountability and cost-efficiency in mind, lowering electricity prices for families and businesses.”
According to a 2019 study, competitive bidding, which ROFR laws prevent, lowers construction costs by 20 to 30 percent, potentially saving ratepayers billions of dollars. As more states consider ROFR policies, Economic Liberties calls on policymakers nationwide to prioritize competition and consumer protection in the electricity sector. States with ROFR laws in place should repeal them — as Montana has — and state legislators should block any attempts at passing new ROFR laws.
Read “Tools For Reining in Monopoly Utilities: A Guide for State Lawmakers” here.
Learn more about Economic Liberties here.
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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.