The U.S. District Court for the District of New Jersey ruled October 14 that the state’s Board of Public Utilities cannot require ratepayers to subsidize the costs of proposed natural gas-fired power plants. The Long Term Capacity Pilot Program Act was passed in January 2011, and it has been estimated to cost ratepayers $3 billion over 15 years. Judge Peter Sheridan concluded that while the state can incentivize plant construction, regulating an area overseen by the Federal Energy Regulatory Commission is unconstitutional.
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