The U.S. Supreme Court recently affirmed the Federal Energy Regulatory Commission's (FERC) jurisdiction over rules and practices that directly affect wholesale electricity rates. This recent ruling will make it difficult for Maryland to convince the high court that its power plant construction subsidies do not infringe upon federal authority over wholesale electricity markets.
"I think it is a hard argument to make for the petitioners to claim that these state programs don't directly affect wholesale prices," Energy Attorney Stephen Humes said. "The goal of these programs was to incentivize the development of power generation to keep power costs down for end-user customers."
READ: Md. Faces Skeptical High Court In Power Plant Subsidy Row (subscription my be required)
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