Dozens of Iowa lawmakers ask federal regulators to reject transmission competition pause

DES MOINES, Iowa — Forty Iowa lawmakers, including Iowa House Majority Leader Bobby Kaufmann, are urging federal regulators to reject a request from utility companies that would temporarily halt competition for major electric transmission projects.

In a letter sent to the Federal Energy Regulatory Commission, or FERC, lawmakers asked regulators to deny a complaint filed by utilities seeking a moratorium on transmission competition, arguing the move would increase electricity costs for consumers and reduce market competition.

The complaint, filed in April by incumbent utilities against regional grid operators Midcontinent Independent System Operator, or MISO, and Southwest Power Pool, seeks to pause competitive bidding for transmission projects across multiple states.

Supporters of competition argue the change would effectively allow utilities to receive no-bid control over billions of dollars in future transmission projects tied to growing electricity demand, including from data centers.

The lawmakers wrote that Iowa has repeatedly rejected anti-competitive legislation in recent years and pointed to President Donald Trump’s executive order aimed at reducing regulatory barriers for new market participants.

“The utility complaint is tone deaf to the electricity affordability crisis facing Americans,” Paul Cicio, chair of the Electricity Transmission Competition Coalition, said in a statement. “Suspending competition in MISO and SPP would expose consumers in these regions to billions in unchecked cost escalation for years, guaranteeing higher utility bills.”

Utilities that filed the complaint include ITC Midwest, Ameren Services, Xcel Energy and several other regional electric providers.

The coalition opposing the complaint argues competitive bidding has historically lowered costs for transmission projects in MISO and SPP regions, while utilities say changes are needed to speed project development amid growing energy demand.

The dispute comes as energy providers face increasing pressure to expand electric infrastructure to meet demand from large-scale developments, including data centers.