On July 14, 2023, the U.S. Court of Appeals for the District of Columbia Circuit ruled that Federal Energy Regulatory Commission (FERC) had unlawfully approved the Southeast Energy Exchange Market (SEEM)[1].[2] SEEM is a proposed trading platform for utilities in the Southeast covering 12 states that allows utilities in the region to make automated bilateral trades every 15 minutes using available transmission capacity. The trades are enabled by non-firm energy exchange transmission service (NFEETS).

In a split decision, the court ruled that FERC’s November 2021 decision approving SEEM’s transmission rules went against its open access requirements in Order 888, which aim to ensure transmission owners offer non-discriminatory access to their networks. The appeals court said that FERC failed to explain why the market should be allowed to exclude participants outside the region. The court remanded FERC’s 2021 decision approving the SEEM market. The court also directed FERC to revisit its decision approving SEEM and told the commission to consider an earlier appeal from clean energy companies and environmental groups that it had previously dismissed as untimely.

[1] SEEM members include Associated Electric Cooperative, Dalton Utilities, Dominion Energy South Carolina, Duke Energy Carolinas, Duke Energy Florida, Duke Energy Progress, Georgia System Operations Corporation, Georgia Transmission Corporation, JEA, LG&E and KU Energy, MEAG Power, N.C. Municipal Power Agency No. 1, NCEMC, Oglethorpe Power Corp., PowerSouth, Santee Cooper, Seminole Electric Corporation, Southern Company, Tampa Electric Company and TVA.

[2] https://www.cadc.uscourts.gov/internet/opinions.nsf/0D7A85E32E0291DF852589EC0050747A/$file/22-1018-2007875.pdf