Supreme Court Decision to Review Important Demand Response Case a Step in the Right Direction

(WASHINGTON – May 4, 2015) The Supreme Court of the United States today granted review of a May 2014 divided decision by the D.C. Circuit Court of Appeals invalidating the Federal Energy Regulatory Commission’s (FERC) Order 745 – the landmark policy that provides fair-market compensation for demand response in the wholesale energy market. Review was granted on both petitions, which have been consolidated, by FERC and Enernoc, et. al, case numbers 14-840 and 14-841. The Supreme Court granted review to both central questions, one about FERC’s authority and the other about challenges to central provisions to the order providing for fair valuation of demand response. A broad coalition of clean energy companies, states and state consumer experts, and environmental organizations, including Environmental Defense Fund, supported the Commission in requesting review.

“FERC Order 745 has helped save Americans money and cut pollution, and is firmly anchored in law,” said Michael Panfil, Attorney, US Climate and Energy Program. “We look forward to presenting our compelling case to the Supreme Court in defense of commonsense solutions that level the playing field for this cost-saving, clean energy resource.” 

Review by the Supreme Court opens the door to a possible reversal of the D.C. Circuit’s unfortunate decision. FERC Order 745 has unleashed a wealth of cost savings, public-health protections, and environmental benefits afforded by demand response – a voluntary, energy conservation tool that relies on people and technology, not power plants, to meet our country’s rising electricity needs affordably. FERC Order 745 helps create a level playing field for this low-cost, low-carbon energy resource by giving demand response equal opportunity to compete with traditional energy resources in the wholesale electricity market.

Earlier this year, EDF supported FERC’s petition for Supreme Court review, along with a broad coalition of consumer advocates and environmental organizations, and will continue to vigorously defend the lawfulness of Order 745 before the nation’s highest court.