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

Wärtsilä supplies natural gas plant in Oklahoma to balance wind and solar generation

Wärtsilä has entered into a contract to supply a 56-MW Smart Power Generation power plant, including three of its 50SG natural gas engines, to the Stillwater Utilities Authority (SUA) in Oklahoma.

Siemens gas, steam turbines powering cogeneration plant in Germany

After several months of testing and trial runs, Siemens (NYSE: SI) has handed over three of its gas turbines to Dow Stade for a new 163-MW cogeneration power plant.

Follow Power Engineering on Twitter

Products Showcase

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.

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Archived Articles

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

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover

Power Industry Wire News

Vantage Drilling Company Schedules Third Quarter 2014 Earnings Release Date and Conference Call

Vantage Drilling Company Schedules Third Quarter 2014 Earnings Release Date and Confere...

Blue Earth CEO Response to False Statements and Allegations Made by the Pump Stopper in Seeking Alpha

Blue Earth CEO Response to False Statements and Allegations Made by the Pump Stopper in...

UL Workplace Health & Safety Donates Online Training Courses to Healthcare Organizations

UL Workplace Health & Safety Donates Online Training Courses to Healthcare Organizations

Cyclone Power Technologies Receives $175,000 License Fee From Its Waste-Heat-to-Power Licensee

Cyclone Power Technologies Receives $175,000 License Fee From Its Waste-Heat-to-Power L...

Schneider Electric Named a "Visionary" in Gartner Magic Quadrant Report Analyzing GIS Providers for Utilities

Schneider Electric Named a "Visionary" in Gartner Magic Quadrant Report Analyzing GIS P...

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 >>


Power Engineering Newscasts

EPA chief: carbon caps will boost economy
Australia, Russia enter nuclear power agreement with Argentina
Largest battery energy storage in North America now operational
EPA chief: carbon caps will boost economy Largest battery energy storage in North America now operational Australia, Russia enter nuclear power agreement with Argentina Texas’ Panda Temple combined cycle plant up and running
Siemens agrees to acquire Dresser-Rand
Safety concrete poured at UAE nuclear reactor power project
Foster Wheeler to upgrade natural gas-fired power plant’s emission controls
GE, TransCanada partner on natural gas turbine design
Energy storage global market to grow to $15.6B by 2024; DOE awards $2M to support taller wind turbine towers; Hinkley Point C nuclear project have financial incentives approved; N.J. company building waste-to-energy project in Ireland