Federal court rejects power market appeal from New York regulators

By Marie J. French | 06/17/2024 06:32 AM EDT

The battle highlights the uncertainty over how New York will meet the mandate for a “zero-emissions” power sector by 2040.

An aircraft takes off from Los Angeles International Airport behind electric power lines at sunset.

A decision by a federal appeals court means consumers will pay more for electricity as the state grapples with how to achieve the zero-emissions-by-2040 target for the power sector. Patrick T. Fallon/AFP via Getty Images

ALBANY, New York — A federal appeals court rejected an effort by New York’s utility regulator to lower costs for consumers by arguing that the state’s climate law doesn’t require fossil fuel plants to shut down in 2040.

New York’s Public Service Commission challenged a decision by the Federal Energy Regulatory Commission accepting a shorter life span for new gas plants in the power market rules set by the state’s grid operator. The United States Court of Appeals for the District of Columbia Circuit sided with FERC in a decision issued Friday.

Why it matters: The battle highlights the uncertainty over how New York will meet the mandate for a “zero-emissions” power sector by 2040. It’s a question the PSC is just starting to grapple with through a process it kicked off more than three years after the Climate Leadership and Community Protection Act was signed.

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The federal court’s decision faulted the PSC for failing to act more quickly and emphasized the uncertainty facing investors. It said that FERC and the New York Independent System Operator acted reasonably given the uncertainty about the state’s climate goals.

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