Execs of Energy Companies Wanting ROFR Monopoly Make MILLIONS Annually

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Executives of energy companies operating in Wisconsin and that are currently seeking the “right of first refusal (ROFR)” – a monopoly – over regional projects rake in millions of dollars a year.

For example, Scott J. Lauber, president and CEO of WEC Energy Group, earned $9,552,179 in 2023, the latest year available.

John O. Larsen, board chair and then CEO of Alliant Energy, earned $9,709,782 in 2023.

Bob Frenzel, chairman, president, and CEO of Xcel Energy, which is headquartered in Minneapolis, earned $12,055,000 in 2023.

However, ATC, which is owned in part by WEC Energy and Alliant Energy and is a major player seeking ROFR legislation, has not disclosed its executive compensation since 2011.

ATC is a transmission company that provides primary network transmission services to electric distribution companies, municipal utilities, and cooperative utilities. 

Rofr

The salaries were exposed by Republican state Rep. Dan Knodl, who is one of the growing “no” votes among Republicans in the state Legislature who are trying to stop ROFR, which could come to a head this week. (Disclosure: the co-founder of this site, state Rep. Jim Piwowarczyk, R-Hubertus, previously penned a column revealing that he, too, is a “hard no” on ROFR.)

Conservatives opposed to ROFR believe it is unconstitutional, antithetical to free market values, and could jack up costs to ratepayers, despite a company-sponsored analysis claiming the opposite. They question why Democrats would support lining the pockets of millionaire executives while low-income ratepayers will be especially hit hard with increased energy expenses.

Analysis shows:

WEC Energy (2023 – latest available)

    • Scott J. Lauber, president and CEO: $9,552,179 in 2023.
    • Gale E. Klappa, executive chairman: $11,152,301 in 2023.
    • Xia Liu, executive vice president and CFO: $4,508,378 in 2023.
    • Margaret C. Kelsey, executive VP, general counsel, and corporate secretary: $2,687,484 in 2023
    • Robert M. Garvin, executive vice president – external affairs: $2,405,856 in 2023

The amounts do not include a change in pension value.

  • Kevin Fletcher was the past president and chief executive officer: Total compensation from 2017 to 2019 was $32,767,331.

Rofr


Alliant Energy

  • John O. Larsen, board chair and then CEO: $9,709,782 in 2023
  • Lisa M. Barton, president and CEO: $5,712,727 in 2023
  • Robert J. Durian, executive VP and CFO: $2,859,252 in 2023
  • Raja Sundararajan, executive VP: $1,846,058 in 2023
  • David A. de Leon, senior VP:  $1,277,479 in 2023
  • Terry Kouba, senior VP: $1,270,010 in 2023
  • Source and source

Rofr


Xcel Energy

  • Bob Frenzel, chairman, president, and CEO: $12,055,000 in 2023.
  • Brian Van Abel, executive vice president and CFO: $3,987,500
  • Timothy O’Connor, executive VP: $3,683,750
  • Amanda Rome, executive VP: $3,115,000
  • Patricia Correa, senior VP: $1,900,000
  • Brett Carter, former Executive VP: $2,865,000
  • Source

Rofr

Senate Bill 28 was authored by Republican Senate Majority Leader Devin LeMahieu and co-sponsored by Rep. Kevin Peterson, another Republican. However, it has provoked the ire of a growing number of Republicans in the Legislature, as well as talk radio hosts like Mark Belling. The conservative Wisconsin Institute for Law and Liberty has authored a memo that argues ROFR is unconstitutional. Americans for Prosperity Wisconsin also opposes ROFR. Yet dozens of lobbyists have descended on the state Capitol trying to encourage Republican legislative leaders and legislators to band with Democrats and ram it through anyway.

According to an analysis by the MacIver Institute, ROFR would give Wisconsin electric transmission companies “the right to call ‘dibs’ on any regional transmission project authorized by the Midcontinent Independent System Operator (MISO) and which would normally be subject to a competitive bidding process.”

In effect, “competitive MISO projects taking place within Wisconsin would no longer be open to competitive bidding, and would instead be granted, automatically, to whatever Wisconsin transmission company the project connects to,” MacIver explained. “Pure and simple, a ROFR law grants a monopoly to incumbent transmission companies who would no longer have to compete against competitors on construction costs, equity returns, time horizons, or revenue caps.”

The Republicans who oppose ROFR also argue that it would reward unions.

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Gallrein, a farmer and business owner, rode the political capital and the endorsement of President Donald Trump to defeat long-time Congressman Thomas Massie, who has served in Kentucky's fourth congressional district since 2012.

Massie drew the ire of Trump for his continued pressure on the administration about the Jeffery Epstein files and the ongoing conflict with Iran.

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IRG Wisconsin Drop Its Income Tax

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Six Assembly Republicans sent a letter to Gov. Tony Evers, asking him to call another special session.

“We appreciate the progress made through those discussions, particularly efforts focused on returning surplus funds to taxpayers, providing property tax relief, supporting schools, and helping hardworking Wisconsinites manage rising costs. These are the kinds of issues where collaboration matters most. While we may not agree on every issue, we remain committed to working toward responsible outcomes and ensuring politics does not stand in the way of doing what is best for the people of Wisconsin," Reps. Shannon Zimmerman, Todd Novak, Bob Donovan, Ben Franklin, Pat Snyder and Clint Moses wrote in the letter.

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"Despite last week’s setback, we encourage you to call the Legislature back into Special Session to continue work on the common-sense reforms that received broad bipartisan support through months of negotiation. The failure of this legislation to advance does not change the reality that Wisconsin families are still facing rising costs and growing pressure on household budgets. We cannot allow political gamesmanship or ideological extremes on either side of the aisle to prevent meaningful progress on issues where common ground clearly exists," the lawmakers added.

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