COMMENTS OF THE RETAIL ENERGY ADVANCEMENT LEAGUE, THE ELECTRIC POWER SUPPLY ASSOCIATION, THE RETAIL ENERGY SUPPLY ASSOCIATION, AND THE ENERGY PROFESSIONALS ASSOCIATION
Venue: United States Department of Justice
The Electric Power Supply Association (EPSA) joined the Retail Energy Advancement League (REAL), Retail Energy Supply Association (RESA), and the Energy Professionals Association (TEPA) in submitting joint comments to the Department of Justice’s Anticompetitive Regulations Task Force. Representing the competitive energy sector, the associations argue that entrenched monopolies and outdated state and federal regulations are stifling innovation, raising consumer costs, and impeding America’s energy independence and technological progress, especially in supporting AI infrastructure.
Their comments call for concrete actions including:
- Federal legislation to promote retail energy choice nationwide
- Regulatory reform at FERC to ensure fair treatment of competitive suppliers and enable private data-center power sourcing
- EPA procedural overhauls to reduce permitting delays and regulatory burdens
- State-level reforms to end protectionist laws that restrict consumer choice and favor incumbent utilities
- DOJ support for litigation challenging discriminatory or anti-competitive state policies
The associations stress that eliminating these regulatory barriers is essential to ensure affordable, reliable, and innovative energy systems across the U.S.
Key Points:
- Monopoly Utilities Are Blocking Competition
In many states, incumbent utilities still dominate the market, using outdated laws and regulations to prevent consumers from choosing alternative energy suppliers. - Federal Action Is Needed to Expand Retail Choice
The associations urge Congress to revisit 1990s-era legislative proposals that would preempt state laws and mandate retail energy choice nationwide, much like the Telecommunications Act did for phone services. - AI and Data Center Growth Demands Market Flexibility
Competitive suppliers need freedom to co-locate power generation with data centers. Utility efforts to force data centers onto traditional grid systems risk slowing AI growth and raising consumer costs. - EPA and FERC Need Reform
- EPA: The “New Source Rule” and permitting delays through the Environmental Appeals Board slow infrastructure growth and increase energy costs.
- FERC: Current policies, like Right of First Refusal (ROFR), allow incumbent utilities to block competitive transmission projects, harming innovation and affordability.
- State-Level Regulations Often Favor Incumbents
- Many states impose artificial caps on retail competition (e.g., Michigan, California).
- Others give utilities unfair advantages in emerging markets like EV charging (e.g., Maryland, New Jersey).
- Legal and Regulatory Pressure Is Building
The associations spotlight active court cases and utility commission proceedings where competitive interests are pushing back—offering DOJ the chance to file amicus briefs or statements of interest.
Examples
Iowa Supreme Court on ROFR Laws: Called them “quintessentially crony capitalism” and warned they would “impose higher costs on Iowans.”
Virginia Data Centers: Dominion Energy’s proposal would force new data centers to sign 14-year utility contracts—even if they want competitive supply—effectively doubling their capacity costs.
Arizona’s “Buy-Through” Trap: Arizona Public Service lets big customers buy outside energy, but forces them to pay standby fees or participate in an unfinished reliability program APS itself delayed—rendering the choice meaningless.
Maryland’s “Green Speech” Law: Retail suppliers can’t call energy “green” unless it’s sourced from within a narrow regional footprint. This has driven many suppliers out of the state, limiting options and raising prices.
