A Massachusetts federal judge dismissed Avangrid Inc.'s claim that NextEra Energy Inc. violated federal antitrust laws by seeking to delay or prevent construction of a 145-mile transmission project connecting Canada and New England. However, the court will issue a separate order at a later date addressing Avangrid's state-level claims.
In November 2024, Avangrid filed an antitrust lawsuit accusing Florida-based NextEra of intentionally stalling the permitting and approval process for the New England Clean Energy Connect transmission project and inflating the costs by 30%.
US District Judge Mark Mastroianni said in a Sept. 22 ruling that Avangrid's complaint "fails to plausibly state violations of Section 2 of the Sherman Act and the Massachusetts Antitrust Act."
Construction work on the $1 billion New England Clean Energy Connect (NECEC) transmission project has been completed, though commissioning work remains. Avangrid executives announced Sept. 24 at parent company Iberdrola SA's capital market day that the the line is on track to begin delivering power six months ahead of schedule.
The high-voltage, direct-current transmission line will deliver up to 1,200 MW of Canadian hydropower provided by Hydro-Québec to the New England grid. The project has seen its share of hurdles, including a 2021 Maine referendum in which 59% of voters approved halting construction. A Maine jury later decided in April 2023 that Avangrid had a constitutional right to develop the project.
Avangrid said NextEra undermined the project by engaging in "meritless challenges to state regulatory approvals sought by Avangrid," and "improper support for legally flawed ballot questions to block construction of NECEC in Maine."
According to the Maine Ethics Commission, NextEra donated more than $20 million to a political action committee backing the referendum, while Hydro-Québec spent more than $22 million in opposition.
Avangrid also alleged that NextEra worked to exclude the NECEC project by leveraging a breaker at its 1,247-MW Seabrook nuclear plant in New Hampshire. The transmission addition would have exceeded the capacity of the breaker, which according to Avangrid, NextEra cited as a pretext to delay NECEC.
NextEra argued that all of its actions were compliant with federal and state law.
"A barrier may prevent competitors from entering or expanding their presence in the relevant market without creating sufficient market power for a defendant to profit from supracompetitive prices," Mastroianni wrote in the order.
Representatives for Avangrid and NextEra did not respond to requests for comment.
