Chip Cannon on How Court Rulings Could Impact State Development of New Power Plants

Akin Gump energy regulatory partner Chip Cannon was quoted by Law360 on the possible impact of two recent court rulings that held that subsidies offered by New Jersey and Maryland intrude on the Federal Energy Regulatory Commission’s authority over wholesale electricity markets.

Cannon discussed the question of what states can to do to encourage project development without crossing the line into the federal government’s domain: “People have long understood that states have the ability to administer supply procurement programs. I personally think the biggest takeaway is that there's still a lot of uncertainty as to what the states can do.”

He noted that one option could be tax breaks and other related incentives, cautioning, however, “The question is whether the states feel tax programs give them sufficient certainty that the projects will provide benefits to the states.”

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