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Power companies file suit challenging NY nuclear subsidies

by Assoicated Press
October 22, 2016

ALBANY, N.Y. (AP) -- Power companies have sued New York utility regulators over the state's approval of billions of dollars in subsidies for aging nuclear plants.

The suit filed in Manhattan federal court Wednesday argues the state's subsidies interfere with the federal government's role in regulating electricity rates, and will burden the ratepayers who will foot the bill.

The subsidies could cost nearly $8 billion over 12 years.

Plaintiffs include the owners of natural gas and coal plants such as Eastern Generation LLC and NRG Energy Inc.

Democratic Gov. Andrew Cuomo says the subsidies will keep plants running while New York transitions from fossil fuels to renewable energy.

State Public Service Commission Chairwoman Audrey Zibelman says dismissed the lawsuit as a "frivolous" effort by the fossil fuel industry.

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