The Consumer Energy Alliance, a PEIA member, recently hosted a conference call to update stakeholders on the ongoing lawsuit over the PennEast Pipeline project, which would have a $1.6 billion cumulative economic impact, and would save Pennsylvania and New Jersey customers more than $400 million on their home heating bills.
The U.S. Third Circuit Court of Appeals recently ruled that PennEast could not sue New Jersey to acquire property for the pipeline via eminent domain, and PennEast has appealed this ruling to the U.S. Supreme Court. The State of New Jersey has been given until May 13 to respond to PennEast’s request for review.
There has also been a FERC ruling in this matter that favors PennEast. In January, FERC held that the Third Circuit’s ruling threatened to disrupt the natural gas industry’s ability to build interstate pipelines, a right that FERC believes is firmly established by the Natural Gas Act. New Jersey is arguing that there are Constitutional concerns regarding eminent domain and sovereign immunity that supersede the concerns under FERC’s purview.
The Supreme Court has yet to decide whether to take the case, but if the Third Circuit’s ruling is allowed to stand, it would pose a serious threat not only to the PennEast project, but to interstate pipeline projects more broadly. PEIA supports all efforts to build out critical energy infrastructure, and we will continue to monitor the progress of this matter. We appreciate the Consumer Energy Alliance’s efforts to keep everyone informed on this important matter.