The U.S. Court of Appeals for the Seventh Circuit on September 13 upheld subsidies offered by Illinois to help struggling nuclear power plants. The court rejected arguments from power producers and some Illinois energy consumers that so-called zero-emission credits (ZEC) are preempted by the Federal Power Act. Opponents argued the program violates the Commerce Clause of the U.S. Constitution, saying it usurps the authority of the Federal Energy Regulatory Commission (FERC) and FERC’s jurisdiction over wholesale electricity markets.

The ruling was in the case Electric Power Supply Association et al. v. Star et al.

The Electric Power Supply Association (EPSA), an advocacy group for the electric power industry, along with other independent generators and some Illinois energy consumers had said the state’s ZEC program and the $ 235 million in yearly subsidies sent to a pair of Exelon Corp. nuclear plants as part of the state’s Future Energy Jobs Act directly impacted wholesale markets.

The latest appeal in Illinois was filed after a judge in July 2017 dismissed an earlier appeal by EPSA and a group of power generators.…

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