APPA, NRECA support state programs encouraging homegrown generation

The American Public Power Association (APPA) and National Rural Electric Cooperative Association (NRECA) have filed legal briefs with the U.S. Supreme Court backing efforts by Maryland and New Jersey encourage the development of new generating plants through long-term contracts with developers.

Having lost before two separate federal courts of appeals, Maryland and New Jersey are asking the high court to hear their case. The APPA reported on its website Jan. 25 that APPA and NRECA are supporting the petition for review by Maryland and New Jersey.

The legal filing puts APPA and NRECA on opposite sides from the Electric Power Supply Association (EPSA), which represents competitive generation interests. EPSA members were involved in legal victories against the two state generation programs.

Incumbent generators and some retail utilities sued the state commissions in federal district court, alleging that the state action was preempted by the Federal Power Act because the state was setting wholesale capacity prices different from the Federal Energy Regulatory Commission-approved prices set by the PJM auction. The district courts invalidated the contracts for differences and the Third and Fourth Circuit courts of appeal affirmed the rulings of the district courts.

The incumbent generators and their supporters have until Feb. 11, 2015 to file their briefs in opposition.

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.