Dive Brief:

• A federal court in New Jersey struck down as unconstitutional a state law that would have subsidized the development of 2,000 megawatts of natural-gas fired new generation.
• The court said the New Jersey law that established a price generators would be paid for power interferes with interstate commerce and therefore violates the Supremacy Clause of the Constitution. PPL had led the fight against the law, concerned that they could lose money from their existing plants if new plants were built. 
• The Oct. 11 ruling was the second in two weeks; a U.S. court in Maryland overturned a similar law for the same reason.

Dive Insight: 

It is doubtful this is the end of the struggle pitting state regulators in the PJM Interconnection against the market operator over who controls fundamental planning for generation to address load pockets where power prices tend to be higher.