New York officials have settled a lawsuit with power plant owners that challenged their legal authority to auction allowances required for carbon dioxide emissions.
Under the settlement with Indeck Corinth, the Department of Environmental Conservation will maintain at least 1.5 million allowances annually available to power plant operators with long-term contracts.
Indeck has a contract with Consolidated Edison Inc., which is agreeing to buy any additional allowances Indeck needs for its gas-fired generator.
The New York State Energy and Research Development Authority will use proceeds from the carbon auction to benefit ConEd customers.
The settlement includes Brooklyn Navy Yard Cogeneration Partners and Selkirk Cogen Partners.