High court hands FERC major victory in demand-response case

By Rod Kuckro and Ellen M. Gilmer, E&E reporters | Link to article


Federal electricity regulators scored a huge win yesterday when the Supreme Court upheld a controversial rule aimed at encouraging energy conservation in wholesale power markets through a practice known as demand response.

In a 6-2 opinion (No. 14-840), the high court reversed a May 2014 lower court decision that knocked down the Federal Energy Regulatory Commission’s 2011 rule (Order 745) requiring that power users be paid for committing to scale back electricity use at times of peak demand at the same rate as electric generators.

The decision marks a win for the Obama administration, environmentalists and clean energy backers who supported the FERC rule.

(Link to article)