Supreme Court To Decide If Subsidies Can Build Power Plant

BALTIMORE (AP) -- The Supreme Court agreed to hear a case involving a Maryland dispute over whether a state can offer ratepayer subsidies to build a power plant on its borders.

The court announced Monday it will hear two cases involving a deal by the state Public Service Commission to construct the plant.

The Baltimore Sun reports the PSC solicited bids and offered a contract to Competitive Power Ventures with a guaranteed price to build the plant. The PCS agreed to have ratepayers make up the difference if CPV's guaranteed price was higher.

PPL Corp. challenged the deal, arguing the subsidy to CPV interfered with the Federal Energy Regulatory Commission's jurisdiction over interstate wholesale energy sales.

Lawyers for the commission say the decision can disrupt private parties from investing in needed plants.