Challenge to FERC’s ‘Artificial Island’ Cost Allocation Rejected

The D.C. Circuit rejected a bid by Public Service Electric & Gas Co. and PPL Electric Utilities Corp. to undo FERC orders relating to cost allocations for improvements to three nuclear power plants in New Jersey, in a Tuesday decision.

The Federal Energy Regulatory Commission “reasonably decided to adopt a different cost-allocation method” for what it decided was an “analytically unique” project, Judge Judith W. Rogers said.

The commission initially approved PJM Interconnection LLC’s plan for allocating costs for the “Artificial Island Project” over objections by Maryland and Delaware, which claimed that they would bear costs disproportionate to the benefits ...