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In New Mexico, where freshly elected Governor Susana Martinez (R) passed—as one of her first acts upon taking office—an executive order placing a hold on cap-and-trade rules adopted last year by a state agency, the state’s Supreme Court agreed to hear arguments later this month on whether Martinez’s actions were legal.

A settlement over alleged Clean Air violations reached by the Environmental Protection Agency and the Justice Department with Northern Indiana Public Service Co. (NIPSCO) requires the Merrillville, Ind.–based company to shut down a coal plant while investing about $600 million in pollution control technology at the other three plants in its 3,300-MW coal-fired fleet. In related news, Ameren Missouri strongly disputed similar allegations made in a lawsuit over modifications at a 1,200-MW Missouri coal plant.

A federal court last week lifted an emergency stay that had prevented the Environmental Protection Agency (EPA) from proceeding with a Federal Implementation Plan (FIP) for Prevention of Significant Deterioration (PSD) permitting of greenhouse gas sources in Texas while it considered legal challenges against the agency’s authority. The court’s decision means that EPA-issued regulations can curb greenhouse gas emissions from power plants and other large stationary sources in that state.

The second 615-MW supercritical pulverized coal unit of We Energies’ Oak Creek Power Plant went commercial last week. The first unit—a POWER Top Plant—went into service on Feb. 2, 2010, and Elm Road Unit 2’s turnover to the Wisconsin Electric Power Co. by general contractor Bechtel Power Corp. last Wednesday completed the controversial expansion of the 1,135-MW power plant.

The Nuclear Regulatory Commission (NRC) last week instructed staff to address a potential problem at nuclear power plants around the U.S. where the containment sump—an emergency long-term cooling water source—could be clogged by debris accumulating after a high-pressure coolant break.

North Carolina–based utilities Duke Energy and Progress Energy agreed to an all stock merger valued at $13.7 billion on Monday. The combined company, to be called Duke Energy, will be the nation’s largest utility. It will have a $65 billion enterprise value, $37 billion in market capitalization, and 57 GW of domestic generating capacity—including the largest regulated nuclear fleet in the country.

The past week saw a spate of nuclear-related news from around the world. Brazil said it would issue approvals for four nuclear plants and a massive hydropower dam in 2011; a Minnesota House committee voted to lift the state’s 20-year ban on new nuclear power; and a Chinese firm that owns the incident-plagued Hong Kong Daya Bay nuclear plant said it would boost operational transparency to quell public concern.

The 130-turbine Cape Wind offshore wind farm proposed for construction on Horseshoe Shoal in Nantucket Sound, Mass., on Friday received two key approvals—from the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers—completing its federal permitting process.

The U.S. Department of Justice filed a Clean Air Act complaint on behalf of the U.S. Environmental Protection Agency (EPA) alleging that owners and operators of the 2-GW coal-fired Homer City Generating Station in Homer City, Indiana County, Pa., violated New Source Review (NSR) requirements.

South Korean utility GS Electric Power and Services Co. is Siemens Energy’s newest customer for the German firm’s new high-efficiency H-Class gas turbine. Siemens said today that it would supply—for the first time—a complete combined cycle power plant equipped with the new-generation gas turbine.