FERC v. Electric Power Supply Association

Summarized by:

  • Court: United States Supreme Court
  • Area(s) of Law: Administrative Law
  • Date Filed: May 4, 2015
  • Case #: 14-840
  • Judge(s)/Court Below: 753 F.3d 216, 223 (D.C. Cir. 2014)
  • Full Text Opinion

Whether a vacated order that attempted to regulate wholesale prices paid for demand response, on the basis that the order was beyond jurisdiction due to its impermissible effect on retail markets risks confusion in the energy markets and unnecessarily limits the government's regulatory options.

Consolidated with EnerNOC, Inc. v. Electric Power Supply Association.

Petitioner is the Federal Regulatory Commission (FERC), the federal agency charged under the Federal Powers Act with regulating the wholesale electricity market. Petitioner issued a rule that incentivizes retail customers of electricity to use less energy when retail prices of electricity are high. Respondents are a group of energy associations whose members supply retail electricity. Respondents sought review of the final order in district court in the grounds that FERC exceeded its regulatory authority and encroached upon the jurisdiction of the states to regulate the retail electricity market. The district court agreed with the associations, finding the language of the statute ambiguous, and vacated the rule. Petitioner argues that the rule falls within the foundational scope of the commission and it is necessary for the commission to regulate the demand response market because it affects the wholesale market.

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