[USA] Texas PUC Chair resigns amid blackout crisis fallout

March 19, 2021 Guest User

The Texas Public Utility Commission (PUC) Chair Arthur D'Andrea resigned March 16, 2021 at the request of Texas Governor Greg Abbott (R).[1] The move was the latest in a string of events following an extreme cold weather event in February 2021 that caused widespread blackouts in the state. D’Andrea is the third PUC commissioner to resign in as many weeks which leaves the appointed panel empty. D’Andrea had been under pressure from Lt. Governor Dan Patrick (R) to follow the advice of Potomac Economics, the Electric Reliability Council of Texas’ (ERCOT) independent market monitor, to correct $16 billion of excessive charges from the power outage crisis. D’Andrea had declined to revise real-time wholesale energy prices. His resignation was announced after Texas Monthly published a leaked recording where D’Andrea promised out-of-state investors that he would support efforts to prevent repricing of the excessive charges.[2] On March 15, 2021, the Texas Senate passed a bill that would mandate ERCOT move ahead with pricing corrections. However, the Texas House speaker said he did not believe ERCOT’s decision was an error which may mean an uphill battle for the proposal.

[1] https://www.utilitydive.com/news/texas-puc-chair-resigns-following-pressure-from-governor-refusal-to-repri/596843/

[2] https://www.texasmonthly.com/news-politics/wall-street-profited-off-texas-blackouts/

[USA] New Mexico governor warns Biden about effects of oil and gas policies

March 19, 2021 Guest User

On March 15, 2021, New Mexico’s governor, Michelle Lujan Grisham (D), sent a letter warning President Joe Biden that his policies limiting oil and gas production will have widespread adverse effects on New Mexico.[1][2] In January, the Biden administration halted federal oil and gas leases pending a review of the program. According to the letter, more than 60% of New Mexico’s oil and gas production happens on federal land and the state will be disproportionately impacted by Biden’s policies compared to states like Texas or Oklahoma which have more private land available for development.

Oil and gas revenues make up about 32% of general fund revenue in the state. These revenues fund a wide range of state priorities, including public schools, infrastructure projects, and environmental initiatives. A “relatively modest” 10% drop in oil and gas production would cost the state $709 million in revenues by the end of Biden’s first term which could hinder New Mexico’s ability to achieve major goals, the letter says. The letter also highlights New Mexico’s commitment to increasing environmental regulations on oil and gas development, such as methane standards. Gov. Grisham notes that other states like Texas do not have the same robust methane restrictions which could mean high emissions if drillers move due to Biden’s policies. In the letter, Gov. Grisham asks for a seat at the table regarding possible changes to federal fossil fuel programs.

[1] https://www.eenews.net/assets/2021/03/16/document_ew_03.pdf

[2]https://www.eenews.net/energywire/2021/03/16/stories/1063727539?utm_campaign=edition&utm_medium=email&utm_source=eenews%3Aenergywire

[USA] National Grid and PPL announce pair of multi-billion-dollar deals

March 19, 2021 Guest User

On March 18, 2021, National Grid (Headquarters: London, U.K.) and PPL Corp. (Headquarters: Allentown, Pennsylvania) announced two agreements that the companies claim will help them better align their assets with their clean energy strategies.[1][2] PPL will sell its U.K. utility business, Western Power Distribution (WPD), to National Grid for $10.9 billion. WPD is comprised of four electricity distribution companies that serve 7.9 million customers in central and southwest England and south Wales. In a separate transaction, National Grid will sell its Rhode Island utility, Narragansett Electric Company, for an equity value of $3.8 billion. Narragansett Electric is the largest electricity transmission and distribution service in Rhode Island, serving roughly 780,000 customers. As a part of the announcement, National Grid says it will also initiate a sales process for a majority stake in its National Grid Gas Transmission business in the U.K. The transactions follow an August 2020 press release in which PPL announced that it planned to sell WPD in order to shift its focus to U.S. utility investments and clean energy investments to improve share value.[3] National Grid says the “increased exposure” to the U.K.’s electricity sector will allow that company to take “a more holistic approach” and help the UK’s net zero ambitions.[4]

[1] https://www.nationalgridus.com/News/2021/03/The-Narragansett-Electric-Company-to-join-PPL-Corporation-/

[2] https://pplweb.mediaroom.com/2021-03-18-PPL-Corporation-to-sell-U-K-utility-business-to-National-Grid-and-acquire-National-Grids-Rhode-Island-utility-strategically-repositioning-PPL-as-a-high-growth-U-S-focused-energy-company

[3] https://pplweb.mediaroom.com/2020-08-10-PPL-Corporation-Launches-Process-to-Sell-U-K-Business-Reposition-Itself-as-U-S-Focused-Utility-Company

[4] https://www.nationalgrid.com/repositioning-national-grids-portfolio

[USA] Texas governor declares billing errors an emergency matter

March 12, 2021 Guest User

On March 9, 2021, Governor of Texas, Greg Abbott (R), announced that the correction of billing errors is an emergency matter to be considered immediately by the Texas legislature.[1] The announcement comes after regulators at the Texas Public Utility Commission (PUC) declined on March 8, 2021 to direct the Electricity Reliability Council of Texas (ERCOT) to retroactively reprice its artificially inflated prices during the February 2021 cold weather event.[2] The commissioners expressed concern that there was too much uncertainty in how customers might be impacted by directing ERCOT to reverse its pricing. The decision goes against the recommendation of Potomac Economics, the region’s independent market monitor (IMM). According to the IMM, ERCOT should have immediately lowered prices after load shed instructions ended on February 17, 2021, but prices remained high through February 19, 2021 which cost the market $16 billion over the course of 32 hours. On March 8, 2021, Texas Lt. Gov. Dan Patrick called on the PUC to retroactively change the prices from that time period. On the same day, Texas PUC Commissioner Shelly Botkin resigned effective immediately. Her departure comes just a week after the resignation of Chair DeAnn Walker and leaves the commission with just one member left, Chair Arthur D’Andrea.

[1] https://www.utilitydive.com/news/texas-puc-loses-2nd-commissioner-as-lt-gov-presses-ercot-to-correct-16b/596378/

[2] https://www.utilitydive.com/news/texas-regulators-decline-to-act-after-market-monitor-reports-16b-of-inapp/596252/

[USA] Ohio House votes to repeal $1 billion in nuclear subsidies

March 12, 2021 Guest User

On March 10, 2021, the Ohio House of Representatives voted 86-7 to pass H.B. 128, which repeals many provisions in the Creates Ohio Clean Air Program (H.B. 6).[1] H.B. 6 was passed on July 23, 2019 and is a comprehensive energy bill that would provide subsidies to promote clean air. The bill created a customer-paid $1.1 billion subsidy for two nuclear power plants in northern Ohio which had been suffering economically. The bill On July 30, 2020, federal prosecutors indicted then-House Speaker Larry Householder (R) and four associates on charges of running a $61 million bribery scheme involving Energy Harbor, the FirstEnergy subsidiary that operates the two nuclear plants involved in H.B. 6. Householder and his associates are charged with receiving bribes from Energy Harbor in exchange for passing H.B. 6. Householder, who pled not guilty in court, was reelected in November 2020 and continues to serve in the Ohio House while he awaits trial. The former speaker was among those who voted to pass H.B. 128. In the wake of the scandal, there was a large push among Ohio representatives and government officials to repeal all or parts of H.B. 6. While H.B. 128 repealed many of the nuclear provisions in H.B. 6, it did not repeal H.B. 6’s subsidies for two of the Ohio Valley Electric Corp’s (OVEC) coal plants.

[1]https://www.eenews.net/energywire/2021/03/11/stories/1063727183?utm_campaign=edition&utm_medium=email&utm_source=eenews%3Aenergywire

[USA] ERCOT Board of Directors fires CEO after Texas power outages

March 5, 2021 Guest User

The Electric Reliability Council of Texas' (ERCOT) Board of Directors voted on March 4, 2021 to issue a 60-day termination notice for CEO Bill Magness.[1] In a statement, the Board of Directors state that they will "begin an immediate search for a new President and CEO.” The vote comes just weeks after the state experienced widespread power outages during an extreme cold weather event in February 2021. In addition to this news, the Chair of the Public Utility Commission of Texas (PUCT), DeAnn Walker, resigned on March 1, 2021. In her resignation letter, Walker stated that she "accepted [her] role in the situation," but that others, including the Texas Railroad Commission, ERCOT, and the legislature, should accept blame as well.

On March 4, 2021, the chairman of the House Oversight and Reform Subcommittee on the Environment, Representative Ro Khanna (D-California), sent a letter to CEO Bill Magness that requested documents regarding ERCOT's lack of winter storm preparation.[2] In his letter he stated, "The Subcommittee is concerned that the loss of electric reliability, and the resulting human suffering, deaths, and economic costs, will happen again unless ERCOT and the State of Texas confront the predicted increase in extreme weather events with adequate preparation and appropriate infrastructure."

[1] https://www.utilitydive.com/news/texas-head-utility-regulator-deann-walker-resigns-authority-ercot-blackouts/595932/

[2] https://oversight.house.gov/sites/democrats.oversight.house.gov/files/2021-03-03.Khanna%20to%20ERCOT%20re%20Winter%20Storms%20in%20Texas.pdf

[USA] Coalition of utilities unveil plan for multi-regional EV charging network

March 5, 2021 Guest User

On March 2, 2021, the Electric Highway Coalition, which was formed by six utilities in the Southeast and Midwest, announced a plan to enable long distance electric vehicle (EV) travel by creating a network of direct current fast charging (DCFC) stations connecting major highway systems in the Midwest, South, Gulf, and Central Plains regions.[1] According to the Edison Electric Institute (EEI), there will be 18 million EVs in the U.S. by 2030. Currently, one of the major concerns of drivers when it comes to EVs is the availability of charging stations during long road trips.

The Electric Highway Coalition includes Duke Energy, American Electric Power (AEP), Dominion Energy, Entergy Corporation, Southern Company and the Tennessee Valley Authority (TVA). Each of the utilities have committed to providing EV fast charging options within their service territories to facilitate interstate travel. Sites near major highways that have easy highway access and amenities are being considered. DCFC stations will allow drivers to get back on the road in about 20-30 minutes. The utilities will coordinate with one another to prevent overlap of charging infrastructure if two or more utilities are in the same state. All of the utilities in the coalition have made efforts in recent years to increase EV charging infrastructure. For example, TVA announced in February 2021 that it is partnering with the Tennessee Department of Environment and Conservation to develop and fund a fast-charging network across major roadways in the state.

[1] https://www.tva.com/newsroom/press-releases/electric-highway-coalition

[USA] Biden backs former-president Trump on solar tariff suit

March 5, 2021 Guest User

On March 1, 2021, the Biden administration filed with the U.S. Court of International Trade and requested that the court dismiss a lawsuit from the Solar Energy Industries Association (SEIA) and other solar industry members that argued that former-president Trump’s tariffs on bifacial solar panels were unlawful.[1] [2] Bifacial solar was originally excluded from Trump’s 2018 tariffs on other solar products because they were a relatively small share of the market at the time. However, a 2020 midterm review of the 2018 solar tariffs by the U.S. International Trade Commission (ITC) found that bifacial solar would become more popular and that the exclusion of bifacial solar from tariffs would hurt U.S. producers. This study led Trump to issue a presidential proclamation in October 2020 that removed the exception for bifacial solar. In late December 2020, the SEIA, NextEra Energy, EDF Renewables, and Invenergy Renewables challenged the Trump proclamation, which they claimed had violated rulemaking procedure. According to the Biden administration’s recent filing, the solar industry’s complaint "fails to set forth a plausible showing that the President’s determination involves a clear misconstruction of the governing statute, a significant procedural violation or action outside delegated authority."

[1] https://www.greentechmedia.com/articles/read/biden-administration-backs-trump-on-solar-tariff-suit

[2] https://www.bloomberg.com/news/articles/2021-03-01/biden-doj-says-trump-lawfully-killed-solar-tariff-loophole

[USA] Dominion proposes retiring its South Carolina coal fleet by 2030

February 26, 2021 Guest User

On February 19, 2021, Dominion Energy South Carolina filed its modified integrated resource plan (IRP) with the South Carolina Public Service Commission (PSC).[1] The South Carolina PSC rejected Dominion’s 2020 filing in 2020 after finding that the utility’s IRP had distorted its fuel cost and lacked demand side management resource options. In their ruling, the regulators requested that the utility model an early retirement of its coal fleet. The modified IRP included a preferred scenario that would retire the three coal-fired units at Wateree and Williams Stations in 2028 and convert the remaining coal plant, Cope Station, to natural gas in 2030. The preferred scenario adds substantial amounts solar and batteries while also adding natural gas resources to make up for lost generation from the coal plant retirements. Many of the other scenarios in Dominion’s IRP included adding large amounts of solar and solar plus storage between 2030 and 2048, with the possibility to add 2,000 MW of solar from 2026 to 2048. Dominion currently has 973 MW of utility-scale solar contracted and 700 to 900 MW of battery storage.

[1] https://dms.psc.sc.gov/Attachments/Matter/2ff6b38d-c8f9-4f29-8d9f-cc756de01a4e

[USA] Report: Grid-enhancing technologies could be key to solving grid congestion

February 26, 2021 Guest User

According to a new study released on February 24, 2021 by the Working for Advanced Transmission Technologies (WATT) Coalition, a group of six transmission technology providers, moderate investments in technologies that boost power grid efficiency could be key to solving electric grid congestion.[1] The study, titled “Unlocking the Queue,” was done by the Brattle Group at the request of the WATT Coalition and funded by GridLab, EDF Renewables North America, NextEra Energy Resources, and Duke Energy Renewables. The study quantified the benefits of three grid-enhancing technologies (GETs): dynamic line ratings, advanced power flow control, and topology optimization. These technologies could enable Kansas and Oklahoma to integrate 5,200 MW of renewables currently in interconnection queues by 2025, which is more than double what is possible without those technologies.

At a national scale, the WATT Coalition argues that GETs would have benefits such as reduce carbon emissions by 90 million tons per year, provide $5 billion in yearly energy cost savings, create 350,000 total jobs, and double the amount of renewable energy that can integrated. To unlock the benefits the study found, the Watt Coalition recommends four legislative and regulatory actions: 1) federal infrastructure stimulus should invest in deployment of GETs, 2) the federal regulators should require GETs be considered in transmission planning, 3) federal regulators should establish incentives for GETs deployment, and 4) GETs should be offered to renewable developers as a least-cost solution to connect to the grid.

[1] https://watt-transmission.org/2021/02/22/unlocking-the-queue/

[USA] Southeast utilities file SEEM proposal with FERC

February 19, 2021 Guest User

On February 12, 2021, utilities in the Southeast filed with the Federal Energy Regulatory Commission (FERC) for the approval to create a new electricity market called the Southeast Energy Exchange Market (SEEM).[1] SEEM would set up an automated trading platform to buy and sell excess wholesale energy every 15 minutes, with the aim to reduce costs to customers and boost renewable energy resources. The new electricity market is expected to increased carbon-free energy across the Southeast by making it easier for utilities to incorporate renewables while maintaining reliability. SEEM members include Southern Company, Dominion Energy, and Duke Energy.[2] In their filing with FERC, the utilities requested that the commission give stakeholders a 30-day comment period. The utilities also request that FERC fast-tracks its review of the proposal and decide by May 13, 2021. If the proposal is approved, the market would be operational by early 2022.

[1] https://southerncompany.mediaroom.com/2021-02-12-Southeast-electric-providers-submit-filing-with-FERC-for-proposed-advanced-bilateral-market-platform

[2] The full list of expected members is: Associated Electric Cooperative, Dalton Utilities, Dominion Energy South Carolina, Duke Energy Carolinas, Duke Energy Progress, Georgia System Operations Corporation, Georgia Transmission Corporation, LG&E and KU Energy, MEAG Power, NCEMC, Oglethorpe Power Corp., PowerSouth, Santee Cooper, Southern Company and TVA.

[USA] Report: Pandemic causes largest plunge in energy consumption in 30 years

February 19, 2021 Guest User

According to the ninth edition of the Sustainable Energy in America Factbook, which was released in February 2021 by the Business Council for Sustainable Energy (BCSE) and BloombergNEF, the COVID-19 pandemic caused the largest year-on-year decline in energy consumption in three decades.[1] In 2020, U.S. primary energy consumption dropped 7.8%. Transportation energy demand fell 14.4% due to lower rates of commuting and traveling. Electricity use declined least, falling by 3.8% as decreased commercial and industrial demand was partially offset by increased residential demand. Renewables production rose 11% year-on-year and renewable sources generated a fifth of U.S. power in 2020. The U.S. power grid added 17 GW of wind and 16.5 GW of solar. Coal-fired power generation was 19% of the U.S. power mix, down from 45% a decade ago. The report attributes this change to weak demand and increased competition. Total U.S. emissions fell 9.2% which put 2020 20% below 2005 levels. According to the report, these changes have put the U.S. on a trajectory to meet its commitments under the Paris Agreement. However, the report notes that 2021 emissions will likely rebound with economic recovery.

[1]https://bcse.org/factbook/#:~:text=The%202020%20edition%20of%20the,natural%20gas%20and%20renewable%20energy

[USA] FERC, NERC to investigate outages following severe cold weather in central U.S.

February 19, 2021 Guest User

On February 16, 2021, the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC) announced that they will open a joint inquiry into bulk-power system operations during the polar vortex that has hit states in the Midwest and central South.[1] FERC and NERC will investigate all regions impacted by the polar vortex, including the Electric Reliability Council of Texas (ERCOT), the Southwest Power Pool (SPP), and the Midcontinent Independent System Operator (MISO). The severe weather across the Midwest, Oklahoma and Texas, which began on February 11, 2021, led to a spike in demand on the night of February 14, 2021. Coinciding with this event, there was a drop in supply. As a result, ERCOT, SPP, and MISO directed generators to begin rolling blackouts starting on February 14, 2021 in order to avoid negative system impacts.

On February 14, 2021, President Biden declared a state of emergency in Texas and ordered federal assistance to supplement state and local response efforts.[2] On February 16, 2021, the governor of Texas, Greg Abbott (R), directed his state's legislature to investigate ERCOT following the outages.[3] According to officials, increased electricity demand due to the extreme weather, limited gas supplies, frozen wind turbines, and frozen thermal plant instrumentation lines equipment were the major contributors to rolling blackouts across ERCOT.[4] According to a news release from ERCOT on February 18, 2021, roughly 40,000 MW of generation, including 23,500 MW of thermal generation, remains on forced outage due to the extreme weather event.[5]

[1] https://www.ferc.gov/news-events/news/ferc-nerc-open-joint-inquiry-2021-cold-weather-grid-operations

[2] https://www.whitehouse.gov/briefing-room/statements-releases/2021/02/14/president-joseph-r-biden-jr-approves-texas-emergency-declaration/

[3] https://gov.texas.gov/news/post/governor-abbott-declares-ercot-reform-an-emergency-item

[4] http://www.ercot.com/news/releases/show/225369

[5] http://www.ercot.com/news/releases/show/225742

[USA] 14 states call for Biden to reinstate Keystone XL permit

February 12, 2021 Guest User

In a letter sent on February 9, 2021, a coalition of 14 Republican attorneys general led by Montana Attorney General Austin Knudsen urged President Biden to reinstate the Keystone XL pipeline’s permit to cross the Canadian border.[1] The letter was also signed by attorneys general from Alabama, Arkansas, Georgia, Indiana, Kansas, Louisiana, Mississippi, Missouri, North Dakota, South Carolina, South Dakota, Texas, and West Virginia. In their letter to the president, the coalition hinted at possible legal action over Biden’s January 20, 2021 executive order that rescinded the permit for the pipeline, stating, “Please be aware that the states are reviewing available legal options to protect our residents and sovereign interests.” The Republican coalition emphasized the economic harm that the permit cancellation will bring. According to the state attorneys, states had relied on the expected tax revenue from the pipeline. In Montana, for instance, the state will lose approximately $58 million in annual tax revenue due to Biden’s decisions. The coalition also noted that more than 1,000 pipeline workers were laid off after the executive order.

[1] https://dojmt.gov/attorney-general-knudsen-leads-coalition-calling-on-biden-to-reinstate-keystone-xl-permit/

[USA] California utilities plan to spend nearly $15 billion on reducing wildfire risk in 2021 and 2022.

February 12, 2021 Guest User

According to annual wildfire mitigation plans filed with the California Public Utilities Commission (CPUC) on February 5, 2021, PG&E, Edison International's Southern California Edison (SCE) and Sempra Energy's San Diego Gas & Electric (SDG&E) plan to spend $15 billion in 2021 and 2022 to reduce the risk of live wires sparking wildfires.[1] The CPUC began requiring utilities to file annual wildfire mitigation plans after power lines ignited a series of fires in 2017 and 2018. PG&E’s 2021 plan will cost $5 billion in 2021 and $5.2 billion in 2022. The utility will use a new fire risk model to prioritize its wildfire mitigation work, including system hardening and tree trimming. SCE plan outlines strategies such as installing an additional 1,000 to 1,400 miles of insulated powerlines and installing 375 weather stations in its service territory. SCE expects to spend $3.5 billion in 2021 and 2022. SDG&E plans to spend over $646 million in 2021 and nearly $670 million in 2022 on wildfire mitigation. The utility will continue with many of the programs it initiated last year, including expanding outreach to vulnerable communities and strengthening data collection and analyses processes. All three utilities aim to reduce the impact of public safety power shut-offs (PSPS) on their customers.

[1] https://www.cpuc.ca.gov/wildfiremitigationplans/

[USA] MISO study concludes 50% renewables in region is achievable but challenging

February 12, 2021 Guest User

On February 10, 2021, the Midcontinent Independent System Operator (MISO), an Independent System Operator (ISO) that monitors the electric grid in 15 U.S. states and the Canadian province of Manitoba, published its Renewable Integration Impact Assessment (RIIA).[1] RIIA’s purpose was to better understand the long-term impacts of renewable energy growth in the Eastern Interconnection bulk electric systems with a focus on the MISO footprint, provide examples of integration issues, and examine potential solutions to mitigate them. The report examined renewable penetration levels in 10% increments up to 50%. As of 2021, about 13% of MISO’s systemwide energy is generated from renewables, including 26 GW of wind and 1 GW of solar. There are agreements in place for an additional 6GW of wind and 10GW of solar, bringing renewables penetration up to 20% of total energy. MISO predicts that 30% renewable penetration could be achieved by 2026.

RIIA found that renewable penetration under 30% would be manageable within MISO’s existing framework. However, beyond 30%, transformative thinking and coordinated action between MISO and its stakeholders will be required to manage the challenges associated with renewable penetration such as resource adequacy and reliability. The report also notes that renewable growth is not happening uniformly and nearly 80% of renewable resources in MISO are in the northwest region of its footprint, which concentrates current integration challenges to one area. Reaching 30% penetration, though, would mean that those challenges will be system wide. The study concluded that 50% renewable penetration is achievable, but will require changes in planning, operations, and markets to accommodate more variable energy sources.

[1] https://cdn.misoenergy.org/RIIA%20Summary%20Report520051.pdf

[USA] National Academies report maps path to zero-carbon goa

February 8, 2021 Guest User

On February 2, 2021, the National Academies of Sciences, Engineering and Medicine (NASEM), a private, nonprofit organization of researchers, released a report that provides a road map for achieving a carbon-free economy by 2050.[1] The report estimates that by decarbonizing, the U.S. economy could add 1-2 million jobs and Americans could be paying roughly the same share of income for energy as they do today due to declining costs for technology. The report notes that the road map is "technologically feasible… But it is on the edge of feasibility” and that the plan may not be as feasible politically.

Under the road map, direct federal budget support for clean energy would total $350 billion over 10 years. The report identified 5 technology goals: 1) get to 75% of energy from non-carbon emitting sources by 2030, 2) reduce energy use by new buildings by 50% by 2030, 3)50% of new vehicle sales to be zero-emission vehicles by 2030, 4) increase transmission capacity by about 40% by 2030, and 5) triple federal investment in research development, and demonstration (RD&D) of emerging technologies such as advanced nuclear reactors, carbon capture and sequestration, and hydrogen fuel. The report also proposes policy actions necessary to benefit affected communities, workers hit with job losses, and lower-income families. The report proposes a federal green bank which could provide funding for economic redevelopment. The report also recommends the adoption of a $40 per ton carbon tax, increasing by 5% annually, with rebates to protect lower income customers.

[1] https://www.nap.edu/resource/25932/interactive/index.html#tech-goals

[USA] Supreme court to hear PennEast pipeline case on eminent domain

February 8, 2021 Guest User

On February 3, 2021, the U.S. Supreme Court agreed to review a 2019 ruling from the 3rd U.S. Circuit Court of Appeals that prevented PennEast Pipeline Co. LLC from suing New Jersey to seize 42 parcels of state-owned land to build a 116-mile natural gas pipeline between Pennsylvania and New Jersey.[1] Under a provision in the U.S. Natural Gas Act (NGA), pipeline companies can use the federal government’s eminent domain power. After gaining approval for the pipeline from the Federal Energy Regulatory Commission (FERC) in 2018, PennEast sued to gain access to land that is either owned or partially controlled by New Jersey. The 3rd Circuit, which is based in Philadelphia, found that while the AGA lets companies use eminent domain, it does not allow them to sue states to enforce that power. The panel cited the 11th Amendment of the Constitution, which limits the situations in which private entities can sue states without their consent. In recent friend of the court briefs, PennEast and other industry groups claim that the 3rd Circuit decision overturned precedent and would be disruptive to the energy industry.[2] The Supreme court will hear arguments in April 2021, with a ruling likely by late June 2021.

[1] https://www.bloomberg.com/news/articles/2021-02-03/supreme-court-agrees-to-hear-appeal-from-penneast-pipeline

[2] https://www.eenews.net/stories/1062692321/