Press Release – February 8, 2022| February 8, 2022
WASHINGTON – The Southern Environmental Law Center has filed an appeal to the D.C. Circuit Court of Appeals to hear appeals and invalidate orders from the Federal Energy Regulatory Commission approving Southeast Energy Exchange Market.
FERC approved a controversial new energy trading platform called the SEEM in a series orders. The South’s largest transmission-owning monopoly utilities proposed SEEM, which creates a new, free transmission system for wholesale electricity buyers and sellers. However, the utilities have the freedom to exclude independent generators from this valuable resource. There is no independent oversight. Independent clean energy generators may have to pay more for electricity they produce if they don’t have equal access to transmission. Monopoly utilities and their costly, carbon-intensive generation resources will get a pass.
SEEM provides a way to support uneconomic, dirty utility-owned assets and discourage low-cost, renewable electricity. This could increase energy costs for communities already struggling with high monthly electric bill. Nearly five million South African households already have a severe or high energy burden. SEEM could slow down the region’s much-needed transition towards clean energy by disadvantaging clean energy generators.
SELC and its Partners raised these and other concerns to FERC. They made multiple recommendations for ways to improve SEEMs design, in order to prevent undueding discrimination and increase oversight.
The case is about the fundamental principle that open access should be enforced by the Commission to protect consumers and market participants, stated Maia Hutt (SELC Staff Attorney). SEEM must include open-access transmission and accountability mechanisms so that customers are not harmed by SEEM.
SELC today filed the appeal on behalf Energy Alabama, Georgia Interfaith Power and Light and North Carolina Sustainable Energy Association. Partnership for Southern Equity, Sierra Club and Southern Alliance for Clean Energy. Vote Solar, South Carolina Coastal Conservation League and Southface Institute were also represented by SELC. The appeal was also joined by the Natural Resources Defense Council, Clean Energy Buyers Association and Solar Energy Industries Association.
Background:
Several Southeastern utilities, including some large ones like Southern Company, Duke Energy and Dominion Energy filed a proposal to FERC in February 2021 in order to create the Southeast Energy Exchange Market. However, the proposal was challenged in part by SELC, which represents several organizations of public interest throughout the region.
Concerned by the potential impact SEEM could have on customer bills and clean electricity development in the South, SELC voted no to the proposal on behalf Energy Alabama, Sierra Club, South Carolina Coastal Conservation League, GASP, Southern Alliance for Clean Energy, Southface Energy Institute, Inc., Vote Solar, Georgia Interfaith Power and Light, Georgia Conservation Voters, and Partnership for Southern Equity.
SELC and its partners urged FERC not to approve the proposal without critically evaluating it. They argued that the market would be detrimental to communities and the environment in the Southeast.
