FERC Spares Small Utilities From Power Market Rule

Law360, New York (July 17, 2009, 1:28 PM EDT) -- The Federal Energy Regulatory Commission has mostly affirmed a rule designed to make wholesale electricity markets more competitive and save energy, despite utilities' protests that it had overstepped its jurisdiction.

On Thursday, FERC affirmed the basic findings of an October 2008 rule, Order No. 719, that sought to control energy consumption through demand response, a strategy for cutting peak demand for energy.

The final rule directs grid operators to accept bids from demand response sources for ancillary services, and to drop certain charges to energy market...
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