There was major news last week on the New England Clean Energy Connect transmission line, which has been delayed by over three years from its initial in-service date. Avangrid (the project developer) has sued NextEra for antitrust violations, alleging that the company has committed "anticompetitive, unfair and deceptive business practices to foreclose competition for the supply of wholesale electricity on the ISO New England marketplaces." NextEra owns several large generation resources in the region and has almost certainly profited from the higher wholesale electricity costs that have resulted from NECEC's delay. The lawsuit includes a long list of accusations, including "overt acts that constitute monopolization, attempted monopolization, civil conspiracy, intentional interference with contract, sham petitioning, dark-money deception, and false and misleading statements." Avangrid alleges damages of at least $350 million, and is seeking three times the damages, plus interest and legal costs. The saga outlines one of the key challenges for transmission development in the region and in the country: incumbent generators can use a wide range of regulatory, legal, and political mechanisms to gum up the development process, potentially delaying or blocking projects. Transmission expansion will be crucial to the clean energy transition, so clean energy advocates would be smart to learn from this fight. I'm curious if the Massachusetts Attorney General's Office will take action on behalf of ratepayers in the state. The delay appears to have cost ratepayers well over $500 million, along with a likely increase in power system emissions. The AGO declined to comment on this, so we'll see where it goes. Check out the full story here at RTO Insider LLC: https://lnkd.in/et8mFMwC
Jon Lamson’s Post
More Relevant Posts
-
On June 13, 2024, the Federal Energy Regulatory Commission issued an "Order to Show Cause" under Section 206 of the Federal Power Act to four regional transmission organizations (RTOs) and independent system operators (ISOs). The impact of "TO self-funding" on generation developers can be substantial. Mike Blackwell provides a breakdown of the potential impacts on generation developers: https://lnkd.in/gXk8zbn9 #EnergyRegulation #FERC
Climate Solutions Legal Digest
https://www.climatesolutionslaw.com
To view or add a comment, sign in
-
Last week, the Federal Energy Regulatory Commission approved FERC Order 1920, a 1,300-page regulation that will transform how the U.S. power grid is planned and paid for. Now comes the hard part — turning those reforms into the thousands of miles of power lines the U.S. needs to transition from fossil fuels to clean, cheap, and reliable power. Clean energy investors, environmental groups, and grid reliability experts praised FERC’s two-member Democratic majority for crafting new rules that give the country a chance to build power lines at the rate needed to meet climate goals. Republicans in Congress — and at FERC itself — attacked the order as an attempt to force the cost of meeting clean energy policies onto unwilling states and utility customers. Legal challenges are almost certain to emerge. But supporters of FERC Order 1920 warned that roadblocks beyond lawsuits threaten the long-term benefits of the new transmission reforms. Perhaps the bigger challenge, they said, is making sure that the utilities, grid operators, and state regulators tasked with carrying out the reforms actually follow through over the coming years. FERC’s order applies most directly to the country’s regional grid operators, which manage transmission networks that provide electricity for about two-thirds of the U.S. population. With the exception of the Electric Reliability Council of Texas (ERCOT), the grid operator for most of the state, all these regional grid organizations must craft plans to comply with the order and submit them for FERC review by spring 2025. #ferc #transmissionreform #regionalgridoperators #ercot #energytransition #utilities #powerlines #renewablenergy
FERC passed big transmission reforms; now the hard part begins
canarymedia.com
To view or add a comment, sign in
-
What will Trump’s presidency mean for the composition of the Federal Energy Regulatory Commission? Learn more from Jacob Brandes and Catherine McCarthy in this Energy Legal Blog post: https://lnkd.in/gTi7hp3R #ferc #energy #trump
To view or add a comment, sign in
-
-
⚡ How Energy Regulation Shapes Reliable & Affordable Power for Our Communities At Southside Electric, we are committed to keeping our members, community partners, and stakeholders informed about the policies and regulations that shape the energy industry. This interview with FERC Chairman Mark Christie offers valuable insights into the roles of the Federal Energy Regulatory Commission (FERC) and the Virginia State Corporation Commission (SCC), two key entities that help ensure reliable and affordable electricity. As a not-for-profit cooperative, our focus is always on serving our members. That’s why we closely follow regulatory decisions that impact energy costs, infrastructure, and service reliability. We appreciate Chairman Christie’s perspective on balancing energy demand with infrastructure development and the importance of making decisions that prioritize working families. #HereForYou https://lnkd.in/ecSzcxrw
New FERC chairman talks electric bills, energy demand and the Mountain Valley Pipeline
cardinalnews.org
To view or add a comment, sign in
-
Our Executive Director shares WIRES' perspective on the new Federal Energy Regulatory Commission's transmission rule in Utility Dive: "A surge in expectations for load growth — partly driven by data centers and electrification — is adding urgency to building out the grid, according to Larry Gasteiger, executive director of WIRES, a trade group focused on transmission issues. Concerns from some state regulators and consumer groups about overbuilding the grid are increasingly becoming 'speculative,' Gasteiger said. 'The bigger threat is that we’re going to continue to underbuild going forward,' he said. 'So yes, it’s going to cost money … That’s why we need to look at all-of-the-above solutions to the grid needs.' Gasteiger said it was a positive development that FERC decided to continue allowing transmission owners to collect 'construction work in progress' payments from ratepayers to recover their project-related expenses as they build them instead of waiting for a rate case after the facility is brought online. Eliminating CWIP, as FERC initially proposed, would 'work in the wrong direction,' he said." Story: Ethan Howland #transmission #gridofthefuture #grid #gridreliability #gridexpansion #gridmodernization #cleangrid https://lnkd.in/e5CZsY22
FERC transmission rule likely boon to consumers, but Christie dissent is a blueprint for litigation, analysts say
utilitydive.com
To view or add a comment, sign in
-
The Federal Energy Regulatory Commission’s Order 1920 grants states a significant role in transmission planning and cost allocation, as highlighted by 33 utility commissioners from 14 states and the District of Columbia. This development marks an important shift in the energy landscape, empowering states with enhanced responsibilities in the process. #FERC #Transmissionplanning #energylandscape #costallocation Trent Keys, PRC, CDR #utilitycommissoners #atwellhires
Utility commissioners from 14 states, DC, say FERC transmission rule will lower energy costs
utilitydive.com
To view or add a comment, sign in
-
Expectations are running high as the Federal Energy Regulatory Commission's proposed transmission planning and cost allocation rule nears the finish line. "'So, No. 1: FERC has got to tackle the competitive transmission issues they’ve teed up and re-examine rights of first refusal,' WIRES Group Executive Director Larry Gasteiger said in an interview. 'I think if that’s not in there, it would kind of be a major disappointment.' FERC has acknowledged that Order 1000 is not working correctly and the policies around ROFRs need to be reformed, he added. ...Cost containment came up in many of the comments, but Gasteiger said it was not really addressed in the proposed rule. 'We’re hoping that they don’t try to add it in now, given that they haven’t really provided notice on it,' Gasteiger said.'” Story: James Downing for RTO Insider LLC https://lnkd.in/ejUbXng3 #transmission #gridofthefuture #gridmodernization #gridreliability #grid #cleangrid
To view or add a comment, sign in
-
-
Important comments from Larry Gasteiger on FERC's upcoming planning rule highlighting the importance of addressing a key barrier to regional transmission development - Order 1000 solicitations. Effective regional planning requires open collaboration between RTOs, transmission owners, and regional stakeholders. The Order 1000 solicitation process inhibits collaboration, delays needed projects, and ultimately deprives customers of crucial transmission benefits. A balanced FERC rule needs to address this hurdle to drive the open and collaborative long-term regional transmission planning we need.
Expectations are running high as the Federal Energy Regulatory Commission's proposed transmission planning and cost allocation rule nears the finish line. "'So, No. 1: FERC has got to tackle the competitive transmission issues they’ve teed up and re-examine rights of first refusal,' WIRES Group Executive Director Larry Gasteiger said in an interview. 'I think if that’s not in there, it would kind of be a major disappointment.' FERC has acknowledged that Order 1000 is not working correctly and the policies around ROFRs need to be reformed, he added. ...Cost containment came up in many of the comments, but Gasteiger said it was not really addressed in the proposed rule. 'We’re hoping that they don’t try to add it in now, given that they haven’t really provided notice on it,' Gasteiger said.'” Story: James Downing for RTO Insider LLC https://lnkd.in/ejUbXng3 #transmission #gridofthefuture #gridmodernization #gridreliability #grid #cleangrid
To view or add a comment, sign in
-
-
The Federal Energy Regulatory Commission has issued transformative rules that will reshape the landscape of regional transmission planning, cost allocation, and siting. Discover how these changes could impact the future of energy transmission in this Perkins Coie LLP Update. #EnergyTransmission #EnergyLaw #EnergyRegulation #FERC
FERC Issues Historic Rules on Regional Transmission Planning, Cost Allocation, and Siting | Perkins Coie LLP
perkinscoie.com
To view or add a comment, sign in
-
The Federal Energy Regulatory Commission has issued transformative rules that will reshape the landscape of regional transmission planning, cost allocation, and siting. Discover how these changes could impact the future of energy transmission in this Perkins Coie LLP Update. #EnergyTransmission #EnergyLaw #EnergyRegulation #FERC
FERC Issues Historic Rules on Regional Transmission Planning, Cost Allocation, and Siting | Perkins Coie LLP
perkinscoie.com
To view or add a comment, sign in