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Environment & Energy Report

Minnesota Law Favoring Incumbent Electricity Transmitters Upheld

March 25, 2020, 6:40 PM

Minnesota’s “right-of-first-refusal” law that gives existing electricity transmitters the right to construct, own, and maintain transmission lines that connect to their existing facilities is constitutional, a federal appeals court ruled Wednesday.

The law neither discriminates against nor places an undue burden on interstate commerce under the commerce clause, according to the U.S. Court of Appeals for the Eighth Circuit. The court upheld a previous ruling by the U.S. District Court for the District of Minnesota, which found the state’s ROFR law applies equally to all incumbent transmission owners.

LSP Transmission Holdings LLC argued that the district court shouldn’t have dismissed...

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