Environmental, Clean Energy Groups Challenge Approval of Southeast Energy Exchange Market

Environmental and clean energy organizations, represented by the Southern Environmental Law Center and Southern Alliance for Clean Energy, petitioned the U.S. Court of Appeals for the D.C. Circuit to review the Federal Energy Regulatory Commission’s approval of the Southeast Energy Exchange Market (SEEM).

The SEEM proposal was originally submitted by large southeast utilities such as Southern Company, Duke Energy, and Dominion Energy. The market took effect in October 2021 absent FERC action as commissioners were divided two against two on the lawfulness of the proposed trading platform.

The request is based on the organizations’ concern about the impact that SEEM would have on customer bills and the possibility of exclusion of smaller or independent renewable energy producers.

Another factor under discussion is “gatekeeping transmission access.” For clean energy organizations, a key concern is that the SEEM proposal does not guarantee a competitive, responsible and equitable electricity market. The proposal would deny equal access to the transmission system for all public service companies. The approved energy market is expected to generate a new free transmission service for wholesale electricity buyers and sellers, where only SEEM members would have control over who will be able to access free transmission benefits in the future.

The appeal was filed on behalf of 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.

The Southeast is currently facing new energy challenges, where each institution is focused on ensuring that proposed markets do not benefit monopoly utilities and enable the clean, equitable, and low-cost energy transition.