The American Transmission Company (ATC), which owns and operates transmission lines across eastern and central Wisconsin, is seeking federal intervention in a dispute over a major power grid expansion project. The company has asked the Federal Energy Regulatory Commission (FERC) to either redo the bidding process or award the full eastern Wisconsin project to ATC.

Background

The dispute began when the Midwest’s regional grid operator, the Midcontinent Independent Systems Operator (MISO), awarded the project to a startup competitor, Viridon, in January. ATC had bid on the project, but MISO chose Viridon’s lower bid. ATC has since argued that MISO’s bidding process was flawed and that the company is better equipped to complete the project.

The project is part of a larger effort to upgrade the Midwest’s power grid and connect population centers to abundant electricity from renewable sources. The upgrades are expected to cost around $32 billion and are scheduled to be completed by 2033.

Competitive Bidding Requirement

The dispute highlights a larger debate over the use of competitive bidding for multistate transmission projects. Decade-old federal rules require competitive bidding for such projects, but some utilities have argued that this requirement hinders efficient grid development. Supporters of the bidding requirement, including Wisconsin’s Citizens Utility Board, say it helps to shield ratepayers from cost overruns and excessive profits.

ATC’s request to FERC is the latest development in a long-running fight over who profits from billions of dollars in new transmission investments. The company has argued that it is better equipped to complete the project and that MISO’s bidding process was flawed. FERC has not yet decided whether to take up ATC’s request.

Original reporting: Wisconsin Watch — read the source article.