High Court Split Over Limits Of FERC Power Demand Authority

Law360, New York (October 14, 2015, 10:11 PM EDT) -- U.S. Supreme Court justices on Wednesday appeared split over whether the Federal Energy Regulatory Commission could issue a rule that consumers be paid for using less power during high-demand periods, with the conservative wing suggesting the commission stepped into retail electricity territory reserved for the states.

The high court is mulling whether FERC reasonably concluded that it had authority under the Federal Power Act to issue its so-called demand-response rule, and if the D.C. Circuit erred in holding that the rule is arbitrary and capricious because it usurps state authority over retail electricity markets.

The federal government is arguing that demand-response...

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