Dive Brief:
- A federal judge ruled that a move by state regulators to direct the construction of new natural gas-fired power plant in Southern Maryland is unconstitutional. The state sought the plant to address reliability concerns.
- The ruling by US District Judge Marvin Garbis said the Maryland Public Service Commission overstepped its authority when it fixed the price the new plant's operator would be paid over 20 years.
- That authority rests with the Federal Energy Regulatory Commission which oversees wholesale electricity markets, Garbis said. He said the "good intentions and importance of the state's objective are immaterial."
Dive insight:
Maryland regulators had been trying to address the higher electricity prices paid by its residents than by those in adjacent states. The higher prices were due to Maryland's having to import 30% of its power from elsewhere in the PJM Interconnection.