Appeals court upholds ruling that Maryland effort to promote new generation is unconstitutional
Originally published June 12, 2014
A federal appeals court has upheld a lower court's ruling that a 2012 Maryland Public Service Commission order promoting development of new generation in the state is unconstitutional. States have substantial latitude in directly regulating generation, but "they may not exercise this authority in a way that impinges on the Federal Energy Regulatory Commission's exclusive power to specify wholesale rates," a three-judge panel of the U.S. Court of Appeals for the Fourth Circuit said in a June 2 decision in PPL EnergyPlus v. Nazarian.
APPA and the National Rural Electric Cooperative Association earlier this year filed a joint brief in the case, arguing that the district court decision was based on an erroneous reading of the Federal Power Act and of Federal Energy Regulatory Commission policy and runs counter to the public interest.
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