Energy Grid Rule Sparks Inflation, Competitive Bidding Concerns

The Federal Energy Regulatory Commission is under pressure from a bipartisan group of lawmakers, trade associations, and other Biden administration officials to nix a proposed barrier to competitive bidding in building regional transmission lines.

A variety of groups applauded the commission’s effort in April to overhaul regional planning and cost allocation of transmission projects. But the part of the rule that allows incumbent electric utilities to avoid competitive processes has been a key source of backlash that threatens to upend the entire rule.

In August, the Justice Department and Federal Trade Commission sharply criticized the ...