Texas ROFR or transmission law before Supreme Court


Texas faces a legal challenge to its law that bans such companies as NextEra Energy, LS Power and Grid United from building transmission in the state because they are considered to be “non-incumbent” companies. In other word, the state’s ROFR law is at stake.

It could be watched closely by Oklahoma legislators who this week held a study exploring a possible law giving utilities the Right of First Refusal in the construction of major transmission lines. The Federal Energy Regulatory Commission might be watching as well since it is in the process of considering changes to its rules, including whether to give incumbent utilities ROFR in construction of such regional lines.

The U.S. solicitor general told the U.S. Supreme Court on Monday that it should deny a request by the Texas Public Utility Commission to review an appeals court ruling that stated the Texas law violates the dormant Commerce Clause.

Solicitor General Elizabeth Prelogar told the court that “States … have no authority to grant monopolies in the interstate electric transmission markets comparable to their authority to grant monopolies in the market for retail distribution of natural gas.”

Click here for Utility Dive