Power Lines Blog

Supreme court affirms FERC’s demand response rules

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The U.S. Supreme Court in January affirmed the Federal Energy Regulatory Commission’s rules for demand response compensation in wholesale energy markets run by regional transmission organizations and independent system operators. The high court in a 6-2 decision reversed and remanded the U.S. Court of Appeals for the District of Columbia Circuit judgment that set aside FERC’s Order No. 745.

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Demystifying arcane electricity markets

Demystifying Self-supply and Other Arcane Electricity Market Concepts

Where there are no RTO-operated capacity markets, utilities either build their own generation or enter into contracts with generators to buy adequate capacity, keeping prices low for customers. These utilities are able to provide a reliable supply of electricity at a reasonable cost. There is no evidence that capacity markets are necessary. Instead, they primarily serve to create windfall profits for certain merchant generation owners.

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