The plaintiffs appealing district court orders that upheld state subsidies for nuclear power plants sent letters to the Second Circuit to inform the court of a June 2018 FERC order that rejected tariff provisions of PJM Interconnection, L.L.C. (PJM), which administers the wholesale capacity market in 13 states and Washington, D.C. The plaintiffs’ letter noted that FERC’s order began by stating that “the integrity and effective of the capacity market administered by [PJM] have become untenably threatened by out-of-market payments provided or required by certain states [to support] … continued operation of preferred generation resources ….” The plaintiffs asserted that the FERC order refuted the market analysis in an amicus brief filed by the United States and FERC in the Seventh Circuit (Intervenor-appellees submitted the U.S. amicus brief to the Second Circuit.) The plaintiffs’ letter to the Second Circuit stated: “This disruption of FERC, PJM, and the whole energy market is exactly why states are preempted from meddling with the wholesale market.” 

Challenge to component of New York Clean Energy Standard that provided payments to certain nuclear facilities providing "zero-emission" power.

Coalition for Competitive Electricity v. Zibelman

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Parties Disagreed on Significance of FERC Order Rejecting Grid Operator’s Tariff Provisions

Filed

United States of America

New York

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Parties Disagreed on Significance of FERC Order Rejecting Grid Operator’s Tariff Provisions

Policy instrument

Renewable energy

Economic sector

Finance