CHICAGO—Foster Wheeler Corp., stung by Illinois' repeal of a state incinerator subsidy, lost its legal challenge in U.S. District Court Nov. 1. A judge dismissed the company's suit against the state, citing the U.S. Constitution's 11th Amendment, which generally bars federal lawsuits against states.
Foster Wheeler, which planned to open a waste-to-energy plant in Robbins, Ill., was one of several firms enticed by Illinois' 1988 Retail Rate Law to set up shop.
The law required public utilities to purchase electricity from tire-and waste-fuel incinerators in their areas at higher retail rates. The utilities were given a tax credit to make up for their extra costs.
But the legislature repealed the law early last year and provided no ``grandfather clause'' for projects already under development.