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New York’s nuclear power subsidies upheld by judge

U.S. judge refuses to halt New York nuclear power plant subsidies, Reuters, JULY 26, 2017  Jonathan Stempel, NEW YORK   – A federal judge on Tuesday dismissed a lawsuit by energy companies and trade groups to stop New York Governor Andrew Cuomo from providing billions of dollars in subsidies to prop up struggling nuclear power plants in the state.

U.S. District Judge Valerie Caproni in Manhattan rejected claims that federal law preempted New York and its Public Service Commission from offering credits to promote clean energy and reduce reliance on fossil-fueled or gas plants.

The plaintiffs said the credits could boost electric bills for New York’s “captive ratepayers” by $7.6 billion over 12 years, and violate the “dormant” Commerce Clause by impeding Congress’ power to regulate commerce among states.

But the judge said New York’s “zero-emissions credits” program was “plainly related to a matter of legitimate state concern”: the production of clean energy, and reduction of emissions from other energy that could add to global warming……..

Audrey Zibelman, in her role as PSC chair, was the lead defendant. Nuclear generators receiving the credits and their owners, including Exelon Corp, also sided with the governor.

Cuomo endorsed the subsidies in connection with his “Clean Energy Standard” announced last August, which required that half of New York’s electricity come from renewable energy sources such as wind and solar by 2030.

The case is Coalition for Competitive Electricity et al v. Zibelman et al, U.S. District Court, Southern District of New York, No. 16-08164.

Reporting by Jonathan Stempel in New York; editing by Grant McCool


July 26, 2017 - Posted by | Legal, USA

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