Supreme Court to Hear Case Affecting Peak-demand Energy Prices
Posted
13 May 2015 in Commentary
As our country prepares for the upcoming brown out and black out season, the Supreme Court has accepted a case involving our nation’s electricity grid. Local governments who participate in demand response programs have a direct stake in the outcome of this case.
The Supreme Court has agreed to decide whether FERC may regulate “demand response” payments offered to electric utility customers to reduce their electricity use during periods of high demand. State and local governments may save money through participating in demand response programs. But the Electric Power Supply Association argued, and the D.C. Circuit Court of Appeals agreed, that FERC’s Order 745 encroaches on states’ regulatory authority.