“Today’s decision by the U.S. Supreme Court to review the Federal Energy Regulatory Commission’s authority to set rules for demand response in energy markets is to be applauded,” said Malcolm Woolf, Senior Vice President for Policy and Government Affairs for Advanced Energy Economy (AEE), a national business organization. “Demand response is a vital service that allows grid operators to relieve stress on the U.S. electric power system at times of peak demand. Under FERC’s rules, demand response has matured into a major industry that helps keep the lights on during critical events such as the polar vortex and saves consumers billions of dollars annually. We hope and expect that the high court will reverse the Appeals Court ruling and restore FERC’s authority over this important tool for reducing energy bills and enhancing grid reliability for American businesses and consumers alike.”
On May 23, 2014, the U.S. Court of Appeals for the District of Columbia Circuit vacated Federal Energy Regulatory Commission (FERC) Order 745, concerning Demand Response. FERC Order 745 established rules for compensating demand response services in wholesale energy markets. By using the latest information technology, demand response providers have developed cutting edge ways of managing electrical load – saving consumers money, stabilizing the grid, and avoiding brownouts.
In overturning FERC Order 745, in response to a lawsuit brought by power plant operators, the Appeals Court denied FERC’s authority to assure the availability in wholesale energy markets of this cost effective, clean, and innovative mechanism for meeting consumer demand and preserving reliability. In January, the U.S. Justice Department filed an appeal asking the Supreme Court to uphold FERC Order 745. Today, the Supreme Court granted a writ of certiorari in the Order 745 case, taking jurisdiction. Oral arguments and a decision by the Court will take place later this year.
In a webinar hosted by AEE, former FERC chairman Jon Wellinghoff expressed confidence that the Supreme Court would take up the case, and if it did, he said, “we will win this hands down,” based on statutory authority and precedent.
About Advanced Energy Economy
Advanced Energy Economy is a national association of businesses that are making the energy we use secure, clean, and affordable. Advanced energy encompasses a broad range of products and services that constitute the best available technologies for meeting energy needs today and tomorrow. AEE’s mission is to transform public policy to enable rapid growth of advanced energy businesses. AEE and its State and Regional Partner organizations are active in 26 states across the country, representing more than 1,000 companies and organizations in the advanced energy industry. Visit AEE online atwww.aee.net
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