Courts Leave States Few Tools To Spur Plant Projects

Law360, New York (October 22, 2013, 5:44 PM EDT) -- The ability of U.S. states to encourage developers to build new power plants in order to lower energy costs and ensure grid reliability may be severely limited after a pair of federal courts recently held that subsidies offered by New Jersey and Maryland intruded on the Federal Energy Regulatory Commission's exclusive authority over wholesale electricity markets, experts say.

While the courts rejected claims that the subsidies violated the Constitution’s dormant commerce clause by discriminating against out-of-state generation, they did find them in violation of the supremacy...
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