Justices Give FERC Green Light To Reshape Power Markets

By Keith Goldberg (January 25, 2016, 8:14 PM EST) -- The U.S. Supreme Court's revival Monday of the Federal Energy Regulatory Commission's rule that consumers be paid for using less power during high-demand periods decisively endorses the commission's view of its own authority and will embolden the commission to push for consumer-friendly energy programs.

In a 6-2 vote, the justices held that FERC had authority under the Federal Power Act to issue the so-called demand-response rule, reversing the D.C. Circuit's decision that the rule usurped state authority over retail electricity markets. Writing for the majority, Justice Elena Kagan said that demand response directly affects wholesale electricity rates, which are squarely in FERC territory,...

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