Maryland, CPV appeal generation ruling

The Maryland Public Service Commission (PSC) and a Competitive Power Ventures (CPV) subsidiary are challenging a ruling by a U.S. District Court judge who ruled against a PSC program that financially supports in-state generation.

The PSC and CPV Maryland filed notices of appeal Nov. 22 in the U.S. Court of Appeals for the Fourth Circuit; Case No. 13-2419.

The October ruling by the federal district judge went against the Maryland program, which forces in-state utilities to enter into long-term contracts with the gas-fired, combined-cycle gas plant planned by CPV in Charles County, Md.

The PSC had wanted more in-state generating capacity and believed that the PJM market was not doing an adequate job of encouraging development of new capacity. The judge, however, said that the Maryland program infringed upon the Federal Energy Regulatory Commission’s exclusive authority to set wholesale energy and capacity prices.

The Maryland program, along with a similar one in New Jersey, were both decried as “subsidized” generation programs by advocates of competitive power. PPL (NYSE: PPL) and other competitive power plaintiffs were successful in getting both the Maryland and New Jersey programs overturned by U.S. District Court judges.

Meanwhile, the New Jersey Board of Public Utilities (BPU) has also challenged a district court decision recently at the U.S. Third Circuit Court of Appeals. Like the Maryland program, New Jersey’s program was struck down in October. Another CPV natural gas project would benefit from the New Jersey generation program.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.