{"id":10080,"date":"2015-05-04T09:09:12","date_gmt":"2015-05-04T14:09:12","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=10080"},"modified":"2015-05-04T09:09:32","modified_gmt":"2015-05-04T14:09:32","slug":"u-s-supreme-court-breathes-new-life-into-ferc-order-745-demand-response","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2015\/05\/04\/u-s-supreme-court-breathes-new-life-into-ferc-order-745-demand-response\/","title":{"rendered":"U.S. Supreme Court Breathes New Life into FERC Order 745, Demand Response"},"content":{"rendered":"

\"scotus\"<\/a>You\u2019ve probably heard the saying \u201clife is a journey,\u201d but this could not be more true for EPSA v. FERC, <\/em>the landmark demand response case clean energy experts have been eyeing<\/a> for more than a year as it\u2019s made its way through the U.S. legal system.<\/p>\n

Starting in the D.C. Circuit Court of Appeals back in May 2014, EPSA v. FERC<\/em> (also known as the \u201cFERC Order 745 case\u201d) now rests with the U.S. Supreme Court where, today<\/a>, it was given new life when the Justices accepted<\/a> the U.S. Solicitor General\u2019s request for review submitted on behalf of the Federal Energy Regulatory Commission (\u201cFERC\u201d). <\/em>Review was granted on both petitions, which have been consolidated, by FERC and Enernoc, et. al<\/em>, case numbers 14-840 and 14-841. The Supreme Court granted review to both central questions, one about FERC\u2019s authority and a second about challenges to central provisions to the order providing for fair valuation of demand response. Environmental Defense Fund (EDF), along with a broad coalition of consumer advocates and environmental groups, supported FERC\u2019s petition before the Supreme Court earlier this year and will continue to do so as the matter is reviewed by the high Court.<\/p>\n

The decision to review the case is great news for demand response<\/a>, a voluntary energy conservation tool that relies on people and technology, not power plants, to affordably meet our country\u2019s rising electricity needs. It\u2019s also a welcome sign for the Federal Energy Regulatory Commission (FERC) \u2013 the government entity tasked with ensuring our electric rates are \u2018just and reasonable\u2019 \u2013 and anyone in favor of cleaner, more reliable, lower-cost energy.<\/p>\n

Why is this decision such a big deal?<\/strong><\/p>\n

In 2011, FERC created Order 745 to provide a level playing field for demand response and fossil fuels to compete fairly, effectuating FERC\u2019s central responsibility under the Federal Power Act to ensure \u201cjust and reasonable rates.\u201d The Supreme Court\u2019s decision to hear the case and potentially reverse the lower court\u2019s unfortunate decision provides an opportunity for demand response to remain intact in our nation\u2019s competitive electricity markets \u2013 ensuring its myriad benefits continue uninterrupted.<\/p>\n

Over the past decade, demand response has saved customers billions of dollars that would have otherwise gone toward more costly polluting resources. In 2013, for example, demand response saved customers in the mid-Atlantic region $11.8 billion<\/a> in lower electricity prices, without even accounting for the value of the environmental benefits.<\/p>\n

This clean energy resource is also efficient because it taps into a wholly different way of meeting our energy needs. It balances stress on the electric grid by reducing demand for electricity, rather than increasing supply. This makes our grid more dynamic, reduces harmful air emissions from fossil fuel power plants, and keeps electricity prices lower.<\/p>\n

The Supreme Court\u2019s decision<\/strong><\/p>\n

The Supreme Court\u2019s decision was not only welcome, but a sign of how important demand response is to our nation\u2019s electric grid.<\/p>\n

When the D.C. Circuit Court of Appeals decided against FERC, the deck immediately became stacked against Order 745. Any case going before the Supreme Court faces long odds: roughly 75-80 cases are heard<\/a> by the Supreme Court each year out of the 10,000 petitions that are filed. For a case to be heard, the Justices must agree that the issue is one of significant national importance. It\u2019s a view that many energy, environmental, and consumer experts share about demand response.<\/p>\n

The road ahead<\/strong><\/p>\n

The Supreme Court\u2019s decision to review the adverse lower court decision is welcome news for our economy and our environment, and means that demand response\u2019s journey does not end here. EDF will remain active in defending the lawfulness of Order 745 before the Supreme Court, as we have from the beginning. From here, the future of this journey is unclear, but an important bridge has just been crossed.<\/p>\n","protected":false},"excerpt":{"rendered":"

You\u2019ve probably heard the saying \u201clife is a journey,\u201d but this could not be more true for EPSA v. FERC, the landmark demand response case clean energy experts have been eyeing for more than a year as it\u2019s made its way through the U.S. legal system. Starting in the D.C. Circuit Court of Appeals back …<\/p>\n","protected":false},"author":39943,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42996,38678],"tags":[53028],"coauthors":[],"class_list":["post-10080","post","type-post","status-publish","format-standard","hentry","category-smart-power","category-demand-response","tag-ferc"],"acf":[],"yoast_head":"\nU.S. Supreme Court Breathes New Life into FERC Order 745, Demand Response - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2015\/05\/04\/u-s-supreme-court-breathes-new-life-into-ferc-order-745-demand-response\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"U.S. Supreme Court Breathes New Life into FERC Order 745, Demand Response - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"You\u2019ve probably heard the saying \u201clife is a journey,\u201d but this could not be more true for EPSA v. 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