NextEra Energy hit with $350 million antitrust lawsuit over hydropower project

Avangrid

13/11/2024 17:17

By Mike Scarcella
       Nov 13 (Reuters) - Electric utility giant NextEra
 NEE.N  has been sued in federal court in Massachusetts for
allegedly using a “scorched-earth scheme” to block competition,
causing more than $350 million in business damages and inflating
how much consumers pay for electricity. 
    Avangrid  AGR.N  and affiliates, including Central Maine
Power, said in the lawsuit on Tuesday that NextEra violated U.S.
and state antitrust laws.
    Avangrid accused NextEra of filing baseless regulatory,
legal and political challenges to thwart its plan to bring
hydropower into New England as a new, low-cost source of
wholesale electricity. 
    “NextEra’s scheme has harmed competition, damaged Avangrid
and consumers, and held Massachusetts’s clean energy transition
hostage,” Avangrid said. 
    Juno Beach, Florida-based NextEra in a statement said it
will be "vigorously defending against these claims in court."
    Avangrid, which is based in Connecticut, did not immediately
respond to a request for comment.
    NextEra markets itself as the world’s largest generator of
sun and wind renewable energy. The company runs 11
power-generation plants in New England and operates elsewhere
around the country.
    Avangrid operates renewable energy generation sites across
the United States, and said it serves more than 3.3 million
customers in New York and New England.
    Avangrid said it won a competition by the Massachusetts
legislature in 2018 for bids to deliver clean electricity to the
state, beating out NextEra.
    Avangrid said Massachusetts lawmakers have made its New
England Clean Energy Connect project, designed to deliver
hydropower from Canada, a key part of the state’s transition to
clean energy. 
    The lawsuit alleged NextEra sought to delay the project
through attacks on permitting and approvals. Avangrid also
accused NextEra of pursuing two unsuccessful voter referenda
items in Maine against the project. Avangrid estimated the line
will be in service in 2026.
    “If not curtailed, NextEra’s conduct will continue to keep
competitor power generators from entering the New England grid,”
the lawsuit said.
    
    The case is Avangrid et al v. NextEra Energy et al, U.S.
District Court, District of Massachusetts, No. 3:24-cv-30141.
    For plaintiffs: J. Mark Gidley and Michael Kendall of White
& Case; John Pucci of Bulkley, Richardson and Gelinas
    For defendant: No appearance yet

 (Reporting by Mike Scarcella)
 ((Mike.Scarcella@thomsonreuters.com;))