Leading the Clean Energy Charge: Spotlight on State AGs

When it comes to the future of a clean energy grid, it might be surprising to learn that state attorneys general play a big role at both the state and federal levels. But it’s true. Regardless of who is leading the Department of Energy or Federal Energy Regulatory Commission (FERC), for years, states have played an important role, and recent examples prove this yet again.

The energy work of state attorneys general (AGs) derives from core AG powers and duties: guarding consumers, defending state policies and laws, promoting competition, and protecting the environment. Some AGs are also the statutory consumer advocate in utility proceedings in their state. In those states the AG has the responsibility to scrutinize utility rates and practices on behalf of residential customers. Some AGs represent state agencies, like environmental protection agencies, in energy and environmental matters. And other AGs use their independent authority to act in a variety of proceedings that implicate rates and other energy issues.

Here are some recent highlights of state-level work:

• State utility commissions consider utility plans to meet future electric demand, and AGs can make sure that these plans appropriately consider issues such as energy efficiency and greenhouse gas emissions. For example, District of Columbia AG Brian Schwalb filed testimony opposing Pepco’s proposed multiyear rate plan. AG Schwalb told the DC Public Service Commission that the plan to serve retail customers was merely “masquerading as a ‘climate-ready pathway’” and actually did not support progress towards the District’s climate and clean energy goals. And Michigan AG Dana Nessel also pushed for cleaner power before the Michigan Public Service Commission, advocating for a settlement agreement that required DTE Energy to close its coal-fired power generation more quickly and expand renewable projects.

• State utility regulators make decisions that affect how much residents pay for electric service and what kind of service they get, but the decisionmaking process is often inaccessible to the public. Massachusetts AG Andrea Joy Campbell issued a report on public participation, detailing how the state’s utilities regulator and siting board can increase engagement. AG Campbell also participated in a Massachusetts regulatory proceeding that established an outreach policy to increase public awareness and participation through heightened public notice requirements.

• High energy costs are a problem across the country, with disconnections for nonpayment harming some of the most vulnerable customers at dangerous times. Illinois AG Kwame Raoul advocated for legislation to protect customers in dangerously hot conditions. The law more broadly prevents utility companies from disconnecting customers for failure to pay during times of extreme heat. Low-income communities generally spend a higher amount of income on utilities. New York AG Letitia James took action to reduce the burden of high electric bills on customers by designating funding from prior settlements to be used to improve energy efficiency in homes occupied by low-income families, reducing energy costs.

• AGs can ensure consumers who seek renewables are not subject to deceptive or discriminatory practices. Arizona AG Kris Mayes is objecting to an Arizona Corporation Commission decision that the AG – herself a former chair of the Arizona Corporation Commission – says discriminates against residential customers who use rooftop solar. Rhode Island AG Peter Neronha filed a lawsuit against a solar company for its misleading sales practices – behavior that the AG said caused distrust among customers and could set back the state’s progress in implementing clean energy programs.
  

In addition to these examples of advocacy in their states, AGs are active on regional and national issues, including at FERC. Some examples include:

• AGs have a crucial voice in drawing the right state-federal jurisdictional lines in energy regulation. In December 2023, the Third Circuit affirmed a market rule for the mid-Atlantic region that preserved state authority to set clean energy goals. This was a victory in the fight against wholesale market rules that disadvantage clean energy. Three AGs filed an amicus brief in the Third Circuit, urging the court to find that the challenged rule appropriately respected state authority, highlighting their states’ interests in deploying more clean energy and maintaining affordable rates.

• FERC approval of new gas infrastructure puts customers on the hook for paying for these projects, regardless of how long they are actually used. Washington AG Bob Ferguson and New Jersey AG Matthew Platkin filed a multistate amicus brief challenging the Regional Energy Access Expansion Project, on the grounds that FERC failed to consider whether the project would truly serve the public interest.

• FERC has been working to improve opportunities for public input in its processes and decisionmaking, and began by asking for input on how to increase public participation. Then-Massachusetts AG Maura Healey led a multistate coalition in comments to FERC as it designed its new Office of Public Participation to support public involvement in its proceedings. The AGs gave FERC examples of successful state programs in areas such as intervenor funding and public education. AG Healey’s office also submitted testimony about public participation, noting that “a well informed and engaged public will result in better, more widely trusted Commission decisions.”

• FERC has convened stakeholders to discuss how to maintain reliability of the electric grid in New England during extreme winter weather events. Massachusetts AG Andrea Joy Campbell participated in a “Winter Gas-Electric” forum convened by FERC to examine the electric and gas challenges facing the New England region. The AG’s office urged FERC to critically examine the relationship between the gas and electric systems in the region, to ensure that the projects that customers are paying for in the name of winter reliability will actually improve reliability, and to continue to hold these conversations with a variety of stakeholders.

For more information on the multifaceted interests and authorities of AGs in energy issues, see our 2019 report, State Attorneys General: Empowering the Clean Energy Future.