Aug 5 (Reuters) - A U.S. appeals court on Monday revived
an antitrust lawsuit accusing Duke Energy ( DUK ) of
monopolizing the wholesale power market in North Carolina,
unlawfully blocking competition from rival power company NTE
Carolinas.
The 4th U.S. Circuit Court of Appeals overturned a judge's
order that said Duke's business practices did not violate U.S.
antitrust law.
The appeals court in a 3-0 panel ruling said there were
sufficient disputes over facts to let a jury weigh the case and
that the trial judge should have allowed the lawsuit to proceed.
Florida-based NTE provided evidence that Duke tried to bar
it from competing for business, U.S. Circuit Judge Paul Niemeyer
wrote in the ruling, joined by Circuit Judges Stephanie Thacker
and Diana Motz. NTE had said Duke Energy ( DUK ) violated antitrust law
in part by terminating an agreement providing access to its
energy transmission network.
The court said there was "much from which a jury could
conclude that Duke's actions were illegitimate anticompetitive
conduct."
A representative from Duke Energy ( DUK ) said it was reviewing the
court's decision.
NTE in a statement said it welcomed the 4th Circuit's ruling
and looks forward "to persuading a jury that Duke's actions
violated the antitrust laws."
NTE is an independent power producer that generates energy
at plants but does not own transmission lines for delivering
electricity to wholesale customers, including cities. NTE relies
on transmission lines of other energy companies such as Duke
Energy ( DUK ).
In 2019, NTE accused Duke of violating antitrust law in the
wholesale energy market in the Carolinas. U.S. District Judge
Kenneth Bell in 2022 said Duke Energy ( DUK ) had not engaged in
anticompetitive conduct and granted summary judgment in its
favor.
The appeals court said Monday that NTE's case should be
reassigned to a different judge.
Bell had earlier stepped aside from hearing the case based
on his affiliation with one of his former law partners at
McGuireWoods who was a lawyer for Duke. Bell later reversed that
decision after finding the conflict was "abated," and he denied
NTE's request that he recuse himself.
The 4th Circuit panel said it found, like other courts,
"that once a judge recuses himself from a case, he should remain
recused from that case," even if recusal from the beginning were
not required.
The case is Duke Energy Carolinas LLC and Duke Energy Corp ( DUK )
v. NTE Carolinas II et al, 4th U.S. Circuit Court of Appeals,
No. 22-2168.
For Duke: Morgan Ratner of Sullivan & Cromwell
For NTE: Derek Ho of Kellogg, Hansen, Todd, Figel &
Frederick
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