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NextEra Energy Faces Antitrust Lawsuit Over Alleged Efforts to Block Competitor’s Project

By  |  December 4, 2024
energy

NextEra Energy, the owner of New Hampshire’s Seabrook nuclear power plant, is at the center of a lawsuit accusing the company of violating federal and Massachusetts antitrust laws. Filed in Boston federal court on November 12, the suit alleges that NextEra engaged in a concerted effort to obstruct a competing energy project, the New England Clean Energy Connect (NECEC), resulting in over $350 million in damages.

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    The plaintiffs—Avangrid, Inc., Central Maine Power Company, and NECEC itself—assert that NextEra employed “anticompetitive” tactics to derail the NECEC project, which is designed to deliver more than 1,000 megawatts of hydroelectric power from Canada to the New England electric grid in Lewiston, Maine. According to its website, NECEC is a critical component of Massachusetts’ clean energy transition and was authorized by the state legislature as a major step toward reducing reliance on fossil fuels.

    Allegations of “Scorched-Earth” Tactics

    The lawsuit accuses NextEra of a multi-pronged campaign to delay or block NECEC, including repeated regulatory and legal challenges, as well as orchestrating two voter referenda in Maine to oppose the project. These actions, the suit claims, not only hindered the project but also postponed the implementation of Massachusetts’ clean energy initiatives, forcing regional consumers to pay significantly more for electricity.

    According to the lawsuit, NextEra’s actions may have stemmed from its loss in a competitive bidding process in 2018, which awarded the NECEC project to Avangrid. “So, both on its own and in conspiracy with others,” the legal filing states, “NextEra engaged in a multi-faceted, scorched-earth scheme to delay and even try to block NECEC altogether.”

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    The 130-page complaint details NextEra’s alleged use of “baseless” efforts through governmental agencies, court systems, and other avenues to stall the project. While the lawsuit claims NextEra’s attempts were ultimately unsuccessful, the delays reportedly caused significant financial harm to the NECEC project while benefiting NextEra’s own energy sales.

    Disputed Circuit Breaker Upgrade

    One specific allegation centers on the “Seabrook Breaker,” a circuit breaker at NextEra’s Seabrook nuclear plant, which protects the plant from grid-related issues. The lawsuit contends that NextEra delayed necessary upgrades to the breaker, which impeded progress on the NECEC project. The Nuclear Regulatory Commission confirmed that the breaker has since been replaced, with Avangrid bearing the cost as part of the ongoing dispute.

    Seeking Remedies

    The plaintiffs have asked the court to declare NextEra’s actions unlawful and to award triple damages, along with additional compensation for legal fees and interest. They have also requested an injunction to prevent NextEra from engaging in similar conduct in the future.

    In response to the lawsuit, NextEra Energy spokesperson Chris McGrath stated, “We are reviewing Avangrid’s complaint, and we look forward to vigorously defending against these claims in court.”

    Source: Sea Coast Line