FOR IMMEDIATE RELEASE
Contact: Ben Finzel (202-277-6286) or ben@38northsolutions.com
WASHINGTON, D.C. (January 25, 2016) –The Advanced Energy Management Alliance (AEMA) was pleased today with the decision of the U.S. Supreme Court to allow Federal Energy Regulatory Commission’s (FERC) Order 745 (Electric Power Supply Ass’n v. FERC, D.C. Circuit No. 11-1486) to remain in place, affirming FERC’s jurisdiction over demand response in the wholesale energy markets at the full price of generation.
“We are delighted that the U.S. Supreme Court has determined that FERC has jurisdiction to allow participation in the wholesale energy markets by consumers who choose to use demand response to reduce their energy costs,” stated Katherine Hamilton, Executive Director of AEMA. “This decision will allow consumers to reap the full benefits of demand response—cost reductions that accrue to those who directly participate in those programs, as well as to the entire customer base.”
Demand response is a term for a group of programs that allow consumers to reduce their energy use during peak times of energy demand in exchange for payments that reflect the value of that reduction. Demand response benefits consumers, is a proven resource that enables more efficient and cleaner operation of the electricity grid, and provides cost savings to everyone who uses electricity. In the Circuit Court ruling, the Court acknowledged that demand response benefits consumers by lowering wholesale costs and increasing system reliability. Many consumers rely on the value of demand response at the wholesale level to reduce energy costs and retain the cost-effectiveness of their industries, businesses, and home energy management systems.
Because this court case predated the group’s founding, AEMA was not a party to this case. Several members of AEMA filed petitions for writs of certiorari or amicus briefs in support of those petitions. Further, a wide range of interest groups including states, utilities, environmental organizations, electricity consumers and consumers’ rights groups submitted briefs in support of an appeal, indicating the far-reaching public policy implications of this case.
“We are particularly pleased that FERC stood its ground in this case,” continued Hamilton, “and that the U.S. Solicitor General saw this as a critical national energy policy.”
As the case worked its way through the courts, deployment of demand response throughout the United States continues to grow, offering greater reliability to the grid, while saving consumers billions of dollars annually. With this decision by the Supreme Court to overturn the DC Circuit Court Decision, the door should be closed on threats to demand response participation in wholesale markets.
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About AEMA:
The Advanced Energy Management Alliance (AEMA) is an association of providers and supporters of demand response united to overcome barriers to nationwide use of demand response for an environmentally preferable and more reliable grid. AEMA advocates policies that empower and compensate customers to manage their energy usage and make the electric grid more efficient, more reliable, more environmentally friendly, and less expensive.