Two federal district courts, one in Illinois and one in New
York, recently upheld the validity of zero emission credits (ZECs)
for nuclear generators in each respective state. ZEC programs
support nuclear generation and ensure that nuclear plants continue
to generate low emissions power. Other independent power producers
in both states challenged the constitutionality of ZEC
programs.
The Illinois Legislature enacted the Future Energy Jobs Act in
2016, providing $235 million in ZECs annually to two Exelon nuclear
plants, Quad Cities and Clinton. Competing independent generating
companies challenged the application of ZECs, stating such payments
interfere with wholesale markets regulated by the Federal Energy
Regulatory Commission (FERC) and are prohibited by the recent U.S.
Supreme Court holding in Hughes v. Talen Energy Marketing,
LLC., 136 S. Ct. 993, which struck down an attempt by the
Maryland Legislature to provide financial support for gas
generation (see
Ener
