The Electricity Transmission Competition Coalition submitted a rehearing request on FERC Order 1920 because the rule creates a new federal monopoly for aging electricity transmission infrastructure replacements, which would unjustly raise electricity prices on consumers. 

WASHINGTON – The Electricity Transmission Competition Coalition today filed for rehearing with the Federal Energy Regulatory Commission on Order 1920 because of its inclusion of a new federal monopoly provision restricting competition for certain transmission projects. The so-called ‘Right-Sizing’ Right of First Refusal provision would grant a federal monopoly for the replacement of aging electricity transmission infrastructure in the United States, which would lead to significant electricity costs increases for consumers. 

In a statement, Paul Cicio, Chair of the Electricity Transmission Competition Coalition, said: “The Federal Power Act is a consumer protection statute, and the United States Supreme Court has been clear that FERC can only act within its powers provided by Congress. Order 1920 ignores both. The Federal Power Act does not give FERC the power to create new federal monopolies.  

“The Biden administration has called on FERC to pursue competition through the President’s Executive Order and the joint filing of the U.S. Department of Justice and Federal Trade Commission on this rule. Order 1920 is inconsistent with these requests.  

“The inclusion of a new federal monopoly by FERC in Order 1920 is a blow to consumers, who expect their consumer protection agencies to protect them from monopolistic abuses. FERC should stand-up for consumers by removing this ROFR and wholeheartedly endorse competition, the only way to lower electricity rates. Today’s rehearing request provides an opportunity for FERC to correct its mistake.” 

The average U.S. electric bill is projected to be its highest in 10 years this summer. Residential electricity prices have risen by 20% over the last three years according to the Energy Information Administration and transmission costs represent the largest component of those rising prices. The latest inflation data showed that electricity price increases are almost double the CPI over the last year. Competition has been shown to lower costs by 40%. The U.S. will need to spend over $2 trillion on transmission by 2050; electricity transmission competition will save ratepayers hundreds of billions of dollars. 

You can read ETCC’s filing in full here. 

You can read ETCC’s factsheet on the four legal issues and errors in Order No. 1920 here. 

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