US Supreme Court Won't Consider Power Line Case
January 19 2010 - 10:43AM
Dow Jones News
The U.S. Supreme Court refused Tuesday to review a ruling that
blocked federal regulators from expanding their authority over the
location and construction of high-voltage power lines, dealing a
blow to the utility industry that favors federal oversight.
The industry sees an overwhelming need to upgrade the nation's
aging electric grid and expand the network to access wind and other
renewable sources of generation in rural areas. The traditional
obstacle to transmission projects is local opposition, since
residents often don't reap benefits from the new lines running
through their communities.
Energy legislation passed in 2005 appeared to give the Federal
Energy Regulatory Commission new powers over the siting of lines in
places such as California and the Mid-Atlantic region where the
grid faces congestion problems. But in a February 2009 ruling the
4th U.S. Circuit Court of Appeals rejected FERC's interpretation
after states and community groups protested. The Richmond,
Va.-based appeals court ruled FERC could not step in and approve a
transmission project a state had rejected.
Opponents of broadening federal powers argued that states, which
historically have sited transmission lines, are in a better
position to make those decisions. Supporters of increasing FERC's
authority say the federal government should have a greater role in
determining where lines go for a variety of reasons, including
energy security and a national effort to expand renewable
generation.
Although stating the appeals court erred in its ruling, FERC did
not support the Supreme Court taking up the case. The request for
high court review was led by the Edison Electric Institute, which
is the major trading group for utility companies.
The Supreme Court let the 4th Circuit ruling stand without
comment.
-By Brent Kendall, Dow Jones Newswires; 202-862-9222;
brent.kendall@dowjones.com
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