Power generators sue New York state over nuclear plant subsidies

• 7 years ago (2016-10-24)
• David Flin

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A group of natural gas and coal power generators are suing the state of New York in federal court over its plan to provide subsidies to four nuclear power plants in the state.

Governor Cuomo’s plan would support the struggling nuclear plants to allow them to help meet the state’s new Clean Energy Standard, which calls for steep carbon reduction goals to forestall climate change.

The complaint by the fossil fuel generators claims that the New York Public Service Commission plan to award zero emission credits to the nuclear plants will artificially depress wholesale electricity prices while putting other power generators at a disadvantage. Ratepayers would underwrite the $7.6 billion cost over 12 years. The lawsuit also says the subsidies would interfere with the federal government’s authority in regulating electricity rates. Plaintiffs include Eastern Generation and NRG Energy.

There are also suggestions that the supply of zero emission credits within the eight-state Regional Greenhouse Gas Initiative (RGGI). This would exert upward price pressure on clean energy credits, increasing costs for gas and coal plants. RGGI is a cap-and-trade system where polluters must buy credits from green energy sources.