Environmental Groups Challenge FERC Approval of Williams Natural Gas Pipeline Expansion
Tulsa-based Williams Cos. is facing another environmental challenge after the Federal Energy Regulatory Commission (FERC) approved an extension of a major natural gas pipeline project in the Southeast United States.
Environmental organizations have asked federal regulators to reconsider their decision authorizing the Southeast Supply Enhancement Project (SSEP), a pipeline expansion tied to the Transcontinental Gas Pipe Line Company (Transco) system.
The Southern Environmental Law Center and the Sierra Club filed a request asking FERC to rehear its January approval of the project, which would begin in Pittsylvania County, Virginia, and transport natural gas into North Carolina and other southeastern states.
Environmental Groups Argue Costs Could Burden Consumers
Opponents argue that the pipeline project could result in long-term financial obligations for customers who ultimately pay utility rates.
“The exorbitant cost of this project will be stuck in ratepayers’ wallets for decades, even if data center load projections diminish. FERC needs to take in the entire picture of evolving load uncertainty within the context of captive, powerless ratepayers and grant this request for rehearing,” said Shelley Hudson Robbins, Senior Decarbonization Manager at the Southern Alliance for Clean Energy. “The stakes are simply too high right now to double down on expensive methane infrastructure.”
Legal Challenge Focuses on FERC Decision Process
Attorneys representing environmental groups also contend that federal regulators relied too heavily on agreements between Transco and regional electric utilities when determining the project’s public need.
“FERC’s decision reads like it was written by the applicant, Transco: accept the utility narrative without question, arbitrarily dismiss or completely disregard any contrary evidence, and move construction forward before the agency process is even complete and parties have access to any potential relief from the courts. That’s why we’re asking the commission to reconsider its authorization, stop construction, and follow the law,” said Megan C. Gibson, senior attorney at the Southern Environmental Law Center. “FERC should rescind its notice to proceed immediately and fix these errors before communities and landowners suffer irreversible damage.”
A Sierra Club official voiced a similar concern regarding the regulatory approval.
“FERC disregarded the facts by approving this unnecessary pipeline,” said Caroline Hansley, Sierra Club’s Campaign Organizing Strategist. “By ignoring expert evidence, community concerns, and basic legal standards, FERC has placed the burden of paying for SSEP on everyday families, while allowing pipeline companies and utilities to rake in profits. FERC must rehear this case to uphold its duty.”
Questions Raised Over Future Natural Gas Demand
The environmental groups also argued that FERC approved the gas pipeline expansion by treating private agreements between Transco and electric utilities as sufficient proof of market demand.
They contend the agency dismissed other evidence suggesting that long-term demand for the pipeline’s capacity may not materialize as projected.
Much of the pipeline’s expected capacity is tied to power plants associated with utilities such as Duke Energy and Southern Company Services, whose customers could ultimately bear the cost through electricity rate structures.
The rehearing request also claims the commission overlooked evidence showing that electric load forecasts tied to growing data center demand may be uncertain.
According to the filing, developers sometimes submit duplicate requests for power service across multiple jurisdictions, a practice sometimes referred to as “phantom load,” which can inflate projections used to justify new infrastructure projects.
Details of the Southeast Supply Enhancement Project
The Southeast Supply Enhancement Project (SSEP) would transport natural gas from an existing Transco compressor station into North Carolina and other southeastern markets.
Williams Cos., headquartered in Tulsa, Oklahoma, plans to place the pipeline expansion into service by the end of 2027.
The project would run parallel to another pipeline development known as MVP Southgate, which received approval from FERC in December. That pipeline is expected to extend approximately 31 miles along a similar route as the SSEP expansion.
Environmental groups continue to argue that the commission’s approval relied on economic forecasts that may have overestimated the future demand for natural gas, and they are asking regulators to reconsider the authorization before construction proceeds further.