A federal court granted a preliminary injunction on Friday against Indiana’s HEA 1420, a state law granting incumbent utility companies a right of first refusal for electricity transmission projects.
This development comes amid a growing debate over “Right of First Refusal” laws, which allow established electricity companies to have first dibs on new projects involving the utility in the state. Critics argue that these laws stifle competition while passing on higher costs to consumers by essentially granting monopolies to companies that provide electricity.
The United States District Court for the Southern District of Indiana held in the case of LSP Transmission Holdings II, LLC v. Huston, that the law discriminates against interstate commerce by erecting barriers for out-of-state transmission companies while giving preferential treatment to in-state…
