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State Power-Plant Subsidies Struck Down by U.S. Supreme Court

  • Court unanimously says Maryland infringed on federal authority
  • Supreme Court ruling may doom similar program in New Jersey
The U.S. Supreme Court is shown March 29, 2016 in Washington.

The U.S. Supreme Court is shown March 29, 2016 in Washington.

Photographer: Win McNamee/Getty Images
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The U.S. Supreme Court struck down a Maryland program that subsidized the construction of new power plants, saying it infringed on federal authority to regulate wholesale electricity rates.

The unanimous ruling ends a program Maryland adopted in 2012 and may doom a similar New Jersey system. The decision helps shape the boundaries between state and federal authority over the electricity market.