FERC Backs Rule For Smart Grid Incentives

Law360, New York (March 17, 2011, 4:15 PM EDT) -- The Federal Energy Regulatory Commission on Tuesday approved a landmark compensation rule central to smart grid technology that will pay consumers to reduce energy consumption during peak usage.

After more than two years of contentious debate, FERC established the market-based demand response compensation rule, firmly asserting the agency’s fundamental regulatory approach for the prospective smart grid system.

In crystallizing the rules for demand response compensation, the agency has resolved a larger argument about the scope and purpose of energy regulation as the market moves toward a...
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