SCOTUS Gives FERC Approval to Reshape Power Markets
Posted on Jan 26, 2016 in Legislative & Politics, Rates, Regulation & Policy | Comments Off on SCOTUS Gives FERC Approval to Reshape Power Markets
In a 6-2 vote, the justices held that the Federal Energy Regulatory Commission (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, and that the FERC is not directly regulating retail electricity sales with the rule.
