Power plant subsidies ruling disappoints Md. officials
Maryland utility regulators and a power plant developer they offered subsidies both expressed disappointment that the Supreme Court ruled against them Monday, but disagreed over what that means for future state efforts to encourage power plant construction.
The court decided Maryland overstepped its authority when the Public Service Commission ordered state utilities to buy electricity generated at a $775 million natural gas plant that Silver Spring-based Competitive Power Ventures is building in Charles County. The state's actions stepped into the territory of federal regulators, the court ruled.
The ruling did not set a precedent that would be applicable in other states trying to increase electric grid capacity or spur renewable energy projects, argued Braith Kelly, senior vice president for external affairs for Competitive Power Ventures.
It did, at least, preserve some state powers, though, Maryland Public Service Commission Chairman W. Kevin Hughes said in a statement.
“While the Maryland Commission is, of course, disappointed that the Court found the form of our arrangement was impermissible, we are pleased the decision reaffirms the right of states to procure new generation,” he said. “We think the Court's opinion provides some clarity for how states can encourage new, clean and renewable generation going forward.”