The Seventh Circuit Court of Appeals has declined to rehear a case that challenges nuclear subsidies in Illinois, effectively dealing a blow to a group of competitive generators, which have fought the measure for several years.

In an order issued on October 9, the appellate court said its full judicial panel had voted to deny a September 29–filed petition from the Electric Power Supply Association (EPSA), a national trade association representing independent power producers and marketers, that urged it to rehear a case challenging the state’s zero emissions credit (ZEC) program under the Illinois Future Energy Jobs Act. In its petition, the group argued that the court erred or overlooked significant aspects of its case when the court issuedits final judgment on September 13.

The court’s decision, which essentially left the door open for states to subsidize nuclear generation, was hailed as a victory for Exelon Corp., which lobbied for the measure to protect its financially flailing nuclear assets.…

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