Earlier this year, the U.S. Supreme Court issued a decision in Federal Energy Regulatory Commission v. Electric Power Supply Association (“EPSA“) that significantly impacts members of the electricity industry. In EPSA, the Court affirmed the Federal Energy Regulatory Commission’s authority to regulate demand response practices in wholesale power markets. The Court also upheld the formula the Commission uses to set compensation for customers who curb their power consumption at the behest of system operators.
This decision holds many implications for members of the electricity industry, and will likely prompt an uptick in demand response participation in wholesale energy and capacity markets. For more information about the implications of the EPSA decision, please click here to watch a podcast by Robert Weishaar, Jr., Chair of McNees Wallace & Nurick’s Energy and Environmental Law Group. Mr. Weishaar’s video provides a detailed overview of the case and discusses its short- and long-term implications for members of the power industry.