Green Energy Mandates Meet the Commerce Clause

Pennsylvania's renewable energy mandate is finally facing a constitutional test. In a lawsuit filed September 3, West Virginia argues that Pennsylvania's requirement that many qualifying renewable generators be located within the state violates a basic principle of interstate commerce: states cannot rig markets to favor their own businesses. The case highlights a broader problem with renewable energy mandates: their high cost. Twenty-eight states and the District of Columbia mandate that electric utilities purchase increasing percentages of their customers' electricity from specific types of 'green' generating resources. Qualifying suppliers are issued renewable energy credits, or RECs, which utilities must purchase. Utilities...