Federal Court Sides with Coops over FERC’s Demand Response Request

A federal court rejected a request from the Federal Energy Regulatory Commission (FERC) to review its decision against a FERC demand response order.  FERC’s Order 745 issued in 2011 required that demand response participants in organized markets be compensated at full retail market price when they refrained from using electricity.  The National Rural Electric Cooperative Association (NRECA), along with others, joined the case and argued that FERC was acting outside its authority in issuing an order that would regulate retail rates directly by ordering utilities to pay retail customers not to consume energy.  The court overturned FERC’s Order because it fell outside of FERC’s authority and failed the arbitrary and capricious test.  Click here to read more.

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