Stymied by Illinois’ governor in its bid to monopolize high-voltage transmission projects, one of the Midwest’s largest utilities is trying a legal end-run to accomplish the same goal.
Ameren Illinois is asserting a right to build, own and profit from nearly $2 billion in new power lines that the region’s grid operator had already declared open to competitive bidding. Consumer groups are challenging Ameren’s claim in separate pleadings before a state court and at the Federal Energy Regulatory Commission.
At the core of Ameren’s claim is an obscure legal doctrine cited in decades-old cases involving other monopoly services such as water and sewer utilities. Ameren now says the so-called first-in-the-field doctrine also applies to high-voltage transmission projects. That is despite federal regulators having opened up the industry to competition more than a decade ago.
Ameren officials declined to be interviewed because the company has a policy of not commenting on ongoing litigation. But Shawn Shukar, president of the utility’s transmission subsidiary, said in an email statement the company is acting for the benefit of its 1.2 million customers by claiming dibs on two 765-kilovolt transmission lines approved by the board of the Midcontinent Independent System Operator (MISO).
