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ITC Midwest

A Message From Dusky Terry, President, ITC Midwest

Proposed Iowa Legislation Ensures a Reliable, Resilient and Cost-Effective Transmission Grid

Energy consumers in Minnesota are enjoying the benefits of ROFR legislation enacted several years ago, while ROFR legislation is currently under consideration in Iowa, Wisconsin and Illinois.

During the 2025 legislative session, Iowa lawmakers will consider legislation that serves as the first broad update to Iowa’s energy policy in several years. One key piece of Governor Kim Reynolds’ proposed energy policy package ensures Iowans decide who builds critical electric transmission infrastructure in the state. The proposed Right-of-First-Refusal (ROFR) provision would ensure that Iowa’s established utilities can develop regional transmission projects that cross the state.

ITC Midwest and other Iowa utilities employ thousands of Iowans to design, maintain and repair power lines in the state to assure power continues to flow during the state’s most extreme weather conditions. They invest in our communities and utilize Iowa companies as suppliers while working with Iowa’s landowners to protect Iowans’ interests.

The proposed ROFR legislation will require construction for these large infrastructure projects to be competitively bid, driving innovative solutions and containing project costs. In addition, the proposed legislation will introduce new landowner rights to ensure private property is carefully restored after construction.

Governor Reynolds’ inclusion of this electric transmission legislation as part of her broader energy policy legislative priorities ensures that Iowa can grow faster and more affordably while leading the country in energy and growth, without adding 14-18 months of delay and cost to the bidding process to get needed transmission infrastructure constructed. This is critical when meeting the tight timelines of new and expanding business and industry.

A reliable, resilient and cost-effective transmission grid is essential to support our growing economy. Electricity is required for the quality of life we all enjoy. Large-scale customers with hundreds or thousands of employees need access to reliable, low-cost energy delivered through the electric grid. A modernized electric grid works to keep utility bills as low as possible.

Consider these benefits of the proposed ROFR legislation:

• Iowa utilities know Iowa best: Iowa’s utilities have weathered the state’s extreme conditions and design systems that create the best value for energy customers over the life of the infrastructure they build, minimizing outages and repairs. Because they already have a robust network of employees, equipment and supplies, they can achieve cost efficiencies that out-of-state companies who operate a single line in the state could never offer.
• Iowa’s utilities are poised to power economic growth: Iowa’s utilities reinvest in the state to stimulate local economic growth, by utilizing local labor, vendors and services while contributing to regional prosperity.
• Iowa’s utilities value landowner relationships: Iowa’s transmission utilities have a 99%+ track record of working with landowners to gain voluntary easements for project rights-of-way, protecting Iowans from the threat of eminent domain by out-of-state developers. The energy legislation introduces new land restoration protections on the largest electric transmission projects in Iowa.

As an Iowa-based utility, ITC Midwest owns and operates a transmission system that helps manage energy costs and ensures reliable service. Of course, there is a great deal of misinformation about proposed ROFR legislation coming from lobbyists for out-of-state energy interests.

The record is clear: When out-of-state companies have built electric transmission projects elsewhere, they have a proven history of low-balling their bids, building with lower-quality materials, minimizing landowner preferences, and, finally, raising the price before construction is completed. When local utilities build large-scale electric transmission projects, the construction standards are higher, the cost of repairs and replacement are reduced, and the costs over the life of the transmission lines are lower for energy consumers.

A recent survey of Iowans found that a majority support ROFR legislation because it assures local utilities, that know Iowa, will be building these lines. By passing ROFR legislation, lawmakers can help ensure a seamless continuation of the reliable, resilient and responsive electricity grid that is key to the region’s continued growth.