In a move that appears to have surprised power-market observers, the U.S. Supreme Court last month agreed to decide whether a state can offer subsidies for powerplant construction to provide needed capacity—without infringing on the authority of federal regulators and distorting the wholesale price of electricity.
At issue is the Maryland Public Service Commission’s decision to subsidize building a 725-MW gas-fired plant in Charles County. Officials determined there was a need for more generation in the state following a market assessment by the regional grid operator, which did not authorize a new facility.