By Mike Scarcella

Nov 13 (Reuters) - Electric utility giant NextEra NEE.N has been sued in federal court in Massachusetts for allegedly using a “scorched-earth scheme” to block competition, causing more than $350 million in business damages and inflating how much consumers pay for electricity.

Avangrid AGR.N and affiliates, including Central Maine Power, said in the lawsuit on Tuesday that NextEra violated U.S. and state antitrust laws.

Avangrid accused NextEra of filing baseless regulatory, legal and political challenges to thwart its plan to bring hydropower into New England as a new, low-cost source of wholesale electricity.

“NextEra’s scheme has harmed competition, damaged Avangrid and consumers, and held Massachusetts’s clean energy transition hostage,” Avangrid said.

Juno Beach, Florida-based NextEra in a statement said it will be "vigorously defending against these claims in court."

Avangrid, which is based in Connecticut, did not immediately respond to a request for comment.

NextEra markets itself as the world’s largest generator of sun and wind renewable energy. The company runs 11 power-generation plants in New England and operates elsewhere around the country.

Avangrid operates renewable energy generation sites across the United States, and said it serves more than 3.3 million customers in New York and New England.

Avangrid said it won a competition by the Massachusetts legislature in 2018 for bids to deliver clean electricity to the state, beating out NextEra.

Avangrid said Massachusetts lawmakers have made its New England Clean Energy Connect project, designed to deliver hydropower from Canada, a key part of the state’s transition to clean energy.

The lawsuit alleged NextEra sought to delay the project through attacks on permitting and approvals. Avangrid also accused NextEra of pursuing two unsuccessful voter referenda items in Maine against the project. Avangrid estimated the line will be in service in 2026.

“If not curtailed, NextEra’s conduct will continue to keep competitor power generators from entering the New England grid,” the lawsuit said.

The case is Avangrid et al v. NextEra Energy et al, U.S. District Court, District of Massachusetts, No. 3:24-cv-30141.

For plaintiffs: J. Mark Gidley and Michael Kendall of White & Case; John Pucci of Bulkley, Richardson and Gelinas

For defendant: No appearance yet

(Reporting by Mike Scarcella)

((Mike.Scarcella@thomsonreuters.com;))