Press Statement  AG Healey Applauds Today’s SJC Decision in ENGIE Gas & LNG V. DPU, CLF V. DPU

Boston — Attorney General Maura Healey released this statement following the Supreme Judicial Court’s decision issued today in the companion cases, ENGIE Gas & LNG v. Department of Public Utilities and Conservation Law Foundation v. Department of Public Utilities, that prohibits the Department of Public Utilities (DPU) from authorizing electric distribution companies to enter into electric ratepayer-backed gas pipeline contracts:

“Today’s SJC decision confirms our longstanding position that existing law bars electric distribution companies from using ratepayer money to foot the bill for natural gas pipelines. Requiring electric ratepayers to pay for new natural gas pipeline capacity effectively shifts the risks associated with building these projects to ratepayers, contrary to the state’s policies of the past two decades. We know from our 2015 electric reliability study that there are cleaner and more affordable options for meeting our energy needs. The Court’s decision makes clear that if pipeline developers want to build new projects in this state, they will need to find a source of financing other than electric ratepayers’ wallets.”

BACKGROUND

In April, 2015, the Department of Public Utilities (DPU) opened a proceeding to investigate whether it could authorize electric companies to enter into long-term gas transportation contracts and recover the costs of the contracts from electric ratepayers. Throughout the process, the Attorney General’s Office questioned the DPU’s authority to review and approve such contracts under existing law, but in an October 2015 order, the DPU concluded that it had the authority. 

ENGIE and the Conservation Law Foundation challenged the DPU’s decision before the Supreme Judicial Court. In April 2016, the AG’s Office filed an amicus brief arguing that the DPU did not have authority under existing state law to allow electric distribution companies to enter into ratepayer-backed natural gas transportation contracts.

The DPU currently is reviewing Eversource’s and National Grid’s proposed contracts with Algonquin Gas Transmission in connection with the Access Northeast pipeline expansion project. See D.P.U. 15-181, 16-05. The AG’s Office has intervened in the cases and recently presented expert testimony challenging the companies’ assertions that the proposed contracts are in the public interest.

In November 2015, the AG’s Office released its regional electric reliability study that found that the New England region does not need increased gas capacity to meet electric reliability needs over the next 15 years and that construction of additional pipeline capacity is not the most cost-effective option for ratepayers. The study found that potential additional electric needs can be met by energy efficiency and demand response, which would save ratepayers more money than building new pipelines and do more to reduce greenhouse gas emissions.