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Utility Industry Groups Sue Over FERC Demand Rule

Utility industry groups are claiming that the Federal Energy Regulatory Commission (FERC) exceeded its regulatory power when it introduced the compensation policy for power demand resources.  The final rule allows demand response providers to receive the
July 16, 2012

Utility industry groups are claiming that the Federal Energy Regulatory Commission (FERC) exceeded its regulatory power when it introduced the compensation policy for power demand resources.  The final rule allows demand response providers to receive the same compensation as conventional power plants, regardless of the type of power generated.  The Electric Power Supply Association (ESPA), the American Public Power Association (APPA), the National Rural Electric Cooperative Association (NRECA) and a host of other utility industry groups have filed suit in the U.S. Court of Appeals for the District of Columbia claiming that FERC's rule also violates the Federal Power Act's requirements that rates be "just and reasonable and not unduly preferential or discriminatory, and are not the product of reasoned decision-making," because it appears to favor demand response over retail generation.  The Clean Energy Report has more here (subscription required to access original story).

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