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Trade Publication Article
The Price is Right?
2015
Overview
The Supreme Court recently heard legal arguments on the fate of FERC Order 745, one of the most highly contested cases on electric utility regulation to come before the High Court in years, if not decades. Order 745 is the controversial ruling, issued in March 2011 by the US Federal Energy Regulatory Commission, in which FERC decided to treat the resource of demand response as if it were the same as generated power. The case has come before the Supreme Court on appeal from the US Court of Appeals for the D.C. Circuit, which had vacated FERC Order 745 as an unlawful attempt by the commission to extend its regulatory reach to activities outside its jurisdiction. Historically, short-term demand for electricity has been relatively inelastic. Time-of-use rates, combined with smart meters and modern communications technology, were thought to be a means to encourage customer response to price.
Publisher
Public Utilities Reports, Incorporated
