Federal Appeals Court Rules Unanimously Against New Jersey

\"6a00d8341bf7d953ef0192ac03024d970d-200wi\"ALLENTOWN, Pa., Sept. 11, 2014 /PRNewswire/ — A three-judge panel for the U.S. Court of Appeals for the Third Circuit has ruled unanimously that a New Jersey law that promoted construction of new power plants by subsidizing development of new generation in the state is invalid because it oversteps the state\’s regulatory authority. The judges ruled that the federal government has exclusive control over interstate rates for capacity payments to electric power generators.

The New Jersey law, which enabled selected generators to receive preferential capacity prices, intruded into an area of regulation reserved for the Federal Energy Regulatory Commission under the Federal Power Act.

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