A group of generators including Dynegy and NRG Energy filed suit in federal court on October 19 seeking to block an incentive program that would help three New York nuclear power plants remain economic over the next decade.

An August decision by the New York Public Service Commission (PSC) approving New York’s Clean Energy Standard included a provision requiring the state’s investor-owned utilities and other energy suppliers to pay for the intrinsic value of carbon-free emissions from nuclear power plants by purchasing “Zero-Emission Credits” (ZEC). Those credits are added to the wholesale price each plant receives for its power, and the costs are passed on to ratepayers.

Subsidies for New York Nuclear Plants Unlawful, Suit Says

The plaintiffs argue that the plan interferes with wholesale power prices in violation of the Federal Energy Regulatory Commission’s (FERC’s) authority over interstate power sales. In particular, they point to a case the U.S. Supreme Court decided earlier this year, Hughes v. Talen Energy Marketing, which struck down a subsidy program in Maryland on the same grounds.…

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