Last week, the U.S. solicitor general told the Supreme Court to deny Duke Energy’s antitrust appeal.
NTE, an independent power producer, alleged utility Duke Energy Carolinas engaged in a “coordinated campaign to squelch competition.” After a lower court dismissed NTE’s claims, the Fourth Circuit Appeals Court ruled that the suit could move ahead.
Back in 2017, Duke Energy Carolinas and NTE Carolinas II entered an agreement to build a combined-cycle gas-fired power plant in North Carolina that went sour. The two entities have been in a dispute ever since.
According to U.S. Solicitor General John Sauer, this stems from Duke trying “to stop a more efficient rival from disturbing its long-dominant hold over a regional energy market.” In the past, Duke has lost nine wholesale customers to NTE’s cleaner and cheaper power plants.
Why does this matter? This shows that the government appears open to using antitrust in electricity markets, potentially increasing scrutiny on anticompetitive conduct. It also highlights the tension between legacy vertically-integrated utilities and new entrants offering cheaper, cleaner power.
