A recent DC Circuit Court decision invalidated a FERC rule allowing Demand Response resources to be bid into wholesale markets. FERC had developed a rule to regulate how demand response by customers could be bid into wholesale markets, which they regulate. The Electric Powers Supply Association appealed, arguing that retail sales are regulated by states individually, and FERC did not have authority to impose a federal rule.
Generally, states have been slower to adopt time-of-use pricing practices, so the FERC rule allowed individual customer DR resources to be aggregated and bid at a pre-approved rate in wholesale markets. The EPSA argues that DR is nothing like power generation, thus FERC should not have authority to regulate it. Obviously, EPSA wants to sell more electricity (especially the really high priced electricity they can sell at peak demand times), and objects to efforts to reduce demand.
The story below describes an appeal to the US Supreme Court. It is not clear whether the Court will accept the case, or when they might rule.
Does anyone else think this might affect the Solar Holler model, or our efforts to get DR into WV utility IRP plans?
Jim Kotcon
http://breakingenergy.com/2015/07/14/ferc-grid-operator-others-file-supreme-...
[http://breakingenergy.sites.breakingmedia.com/wp-content/uploads/sites/2/201...]http://breakingenergy.com/2015/07/14/ferc-grid-operator-others-file-supreme-court-briefs-in-demand-response-case/
FERC, Grid Operator, Others File Supreme Court Briefs In Demand Response Case « Breaking Energy - Energy industry news, analysis, and commentary The Federal Energy Regulatory Commission (FERC), a grid operator, states, and other parties just filed briefs with the U.S. Supreme Court in a case that could decide whether Americans have access to low-cost, clean and reliable electricity. The case, EPSA v. FERC, revolves around demand response, a resource that helps keep prices low and the lights on - and does so while also being environmentally friendly. In 2013, for example, demand response saved customers in the mid-Atlantic region close to $12 billion. And during the polar vortex, which threatened the North-East with freezing cold in 2014, the same resource helped prevent black-outs. The clean energy rule at issue in this case is called FERC Order 745. EDF has been writing about this demand response case throughout the past year. We've been fighting for low-cost demand response and we'll keep fighting in the Supreme Court. History of the Case The case involves a FERC rule that allows demand response - a low-cost, clea Read more...http://breakingenergy.com/2015/07/14/ferc-grid-operator-others-file-supreme-court-briefs-in-demand-response-case/
Having worked at FERC for 5 years I can assure you that they will always be in favor of the utility in their decisions. Gary Nelson ----- Original Message ----- From: James Kotcon To: WV Chapter Energy Committee Sent: Sunday, July 19, 2015 3:05 PM Subject: [EC] Demand response legal challenge.
A recent DC Circuit Court decision invalidated a FERC rule allowing Demand Response resources to be bid into wholesale markets. FERC had developed a rule to regulate how demand response by customers could be bid into wholesale markets, which they regulate. The Electric Powers Supply Association appealed, arguing that retail sales are regulated by states individually, and FERC did not have authority to impose a federal rule.
Generally, states have been slower to adopt time-of-use pricing practices, so the FERC rule allowed individual customer DR resources to be aggregated and bid at a pre-approved rate in wholesale markets. The EPSA argues that DR is nothing like power generation, thus FERC should not have authority to regulate it. Obviously, EPSA wants to sell more electricity (especially the really high priced electricity they can sell at peak demand times), and objects to efforts to reduce demand.
The story below describes an appeal to the US Supreme Court. It is not clear whether the Court will accept the case, or when they might rule.
Does anyone else think this might affect the Solar Holler model, or our efforts to get DR into WV utility IRP plans?
Jim Kotcon
http://breakingenergy.com/2015/07/14/ferc-grid-operator-others-file-supreme-...
FERC, Grid Operator, Others File Supreme Court Briefs In Demand Response Case « Breaking Energy - Energy industry news, analysis, and commentary The Federal Energy Regulatory Commission (FERC), a grid operator, states, and other parties just filed briefs with the U.S. Supreme Court in a case that could decide whether Americans have access to low-cost, clean and reliable electricity. The case, EPSA v. FERC, revolves around demand response, a resource that helps keep prices low and the lights on - and does so while also being environmentally friendly. In 2013, for example, demand response saved customers in the mid-Atlantic region close to $12 billion. And during the polar vortex, which threatened the North-East with freezing cold in 2014, the same resource helped prevent black-outs. The clean energy rule at issue in this case is called FERC Order 745. EDF has been writing about this demand response case throughout the past year. We've been fighting for low-cost demand response and we'll keep fighting in the Supreme Court. History of the Case The case involves a FERC rule that allows demand response - a low-cost, clea Read more...
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