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Court Stays Decision on Order 745 (Demand Response)

October 21, 2014

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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The U.S. Court of Appeals for the D.C. circuit has granted FERC a stay of the court's May decision which found FERC lacked jurisdiction to set compensation for demand response.

The stay was granted through December 16, 2014. If, within the period of the stay, FERC notifies the court clerk in writing that a petition for writ of certiorari has been filed, indicating an appeal to the Supreme Court, the clerk is directed to withhold issuance of the mandate pending the Supreme Court's final disposition

In a September petition for the stay, FERC noted that two other courts of appeals have issued decisions, "that uphold the supremacy of the Commission's exclusive authority to regulate wholesale rates, and practices directly affecting wholesale rates, over state initiatives affecting FERC-jurisdictional rates," in referencing court orders which have rejected state-ordered capacity procurement and compensation.

FERC noted that the successful petitioners in those two capacity cases, which affirmed FERC's exclusive jurisdiction over wholesale rates, are members of the Electric Power Supply Association, the lead petitioner in the instant case which claims FERC lack authority over demand response.

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