Maryland PSC cannot subsidize natural gas-fired development, court rules

file

A U.S. appeals court unanimously ruled that the Maryland Public Service Commission overstepped its bounds when it subsidized natural gas-fired development in the state.

A three-judge panel of the U.S. Court of Appeals for the Fourth Circuit ruled that the commission infringed on the Federal Energy Regulatory Commission’s (FERC) exclusive authority to regulate the wholesale sale of electricity in interstate commerce by “circumventing and displacing federal rules.” The decision affirmed a U.S. District Court order in October that invalidated the PSC’s order.

The April 2012 PSC order required Baltimore Gas and Electric Co., Potomac Electric Power Co. and Delmarva Power & Light Co. to enter into long-term power supply contracts with CPV Maryland LLC to build a 661-MW gas-fired power plant in Maryland. The order essentially guaranteed that the developer would receive subsidized energy and capacity prices when it sold its output, allowing it to bid in artificially low prices into PJM’s annual capacity auction. PPL and other merchant generators filed a lawsuit seeking to block the auction, saying the order infringed on FERC’s exclusive authority to regulate the wholesale sale of electricity.

Because of competitive markets and ample supply resources, gas-fired generation is being built in PJM without state subsidies.

Subscribe to Power Engineering magazine

Sponsored by FLSmidth

Related Articles

U.Va. partnership aimed at environmentally friendly energy

The University of Virginia has formed a partnership to advance research on new and environmentally friendly energy sources.

Siemens completes combined-cycle power plant in Turkey

Siemens (NYSE: SI), together with its partner and customer Cengiz Enerji Sanayi ve Ticaret A.S., announced the completion of Cengiz Enerji Samsun, a 600-MW combined-cycle power plant in Turkey.

Follow Power Engineering on Twitter
Latest News
08/29 Weekly Coal Production Report EIA

08/29 Weekly Coal Production Report

The Weekly Coal Production Report has been updated for the week ended Aug 29, 2015.

Dungeness B nuclear reactor online after planned outage

Dungeness B nuclear reactor online after planned outage

The Dungeness B nuclear Unit 22 is back online following a 16-week planned maintenance outage.
Eletrobras suspends nuclear construction contract amid corruption probe

Eletrobras suspends nuclear construction contract amid corruption probe

Eletrobras said it would suspend a contract with a consortium that is building the 1,405-MW t...
Alabama Public Service Commission OKs construction of renewable energy generation projects

Alabama regulators OK construction of renewable energy generation projects

In a 3-0 vote, the Alabama Public Service Commission approved a proposal from Alabama Power t...
NRC to increase oversight of Pilgrim nuclear power plant

NRC to increase oversight of Pilgrim nuclear power plant

The U.S. Nuclear Regulatory Commission (NRC) will increase its oversight of the 670-MW Pilgri...
Kettleman utility-scale solar project providing electricity to Silicon Valley city of Palo Alto

Kettleman utility-scale solar project powering city of Palo Alto

The Kettleman Solar Power Project in Kings County was built on about 264 acres of land on Hig...
Areva delivers reactor vessel head to Belgium nuclear power plant

Areva delivers reactor vessel head to Belgium nuclear power plant

Areva delivered a nuclear reactor vessel head to Electrabel for Unit 4 at the Doel nuclear po...
EPSA files brief with Supreme court on FERC demand response case

EPSA files brief with Supreme Court on FERC demand response case

The Electric Power Supply Association (EPSA) and a number of other parties filed a legal brie...

Power Engineering Current Issue

02/01/2015
Volume 119, Issue 2
1502PE-cover
Products Showcase
Areva delivers reactor vessel head to Belgium nuclear power plant

Areva delivers reactor vessel head to Belgium nuclear power plant

Areva delivered a nuclear reactor vessel head to Electrabel for Unit 4 at the Doel nuclear power plant in Belgium.

GE announces launch of latest aeroderivative gas turbine, LM6000-PF+

GE announces launch of latest aeroderivative gas turbine, LM6000-PF+

GE is launching its latest aeroderivative gas turbine, the LM6000-PF+, which employs technologies from four GE businesses, bringing power online faster and more efficiently than ever before.

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015

Power Industry Wire News

Energy Partner Paul Kaufman Joins Sheppard Mullin Del Mar

Energy Partner Paul Kaufman Joins Sheppard Mullin Del Mar

Algae Biomass Summit Showcases Advances in Engineering and Analysis

Algae Biomass Summit Showcases Advances in Engineering and Analysis

Dais Looks to Further Build on Aqualyte V4 Following Strong Performance and Improved AHRI Certification Results of Aqualyte V3

Dais Looks to Further Build on Aqualyte V4 Following Strong Performance and Improved AH...

Energy Marketing Conference for Retailers Selects Good Energy as Panel Moderator

Energy Marketing Conference for Retailers Selects Good Energy as Panel Moderator

UGE and OTEPI Continue Success in Panama by Providing Solar to Mega Storage

UGE and OTEPI Continue Success in Panama by Providing Solar to Mega Storage

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>