June 13, 2014.  The Court of Appeals for the District of Columbia Circuit (Court), in a 2 to 1 decision in Electric Power Supply Ass’n v. FERC et al.,[1] vacated the Federal Energy Regulatory Commission’s (FERC) Order 745 in its entirety on May 23, 2014.  Order 745 standardized compensation paid to demand response providers in Regional Transmission Organization (RTO) and Independent System Operator (ISO) wholesale energy markets.  The rule requires RTOs/ISOs to pay demand response providers the locational marginal price (LMP) under certain circumstances. The Court’s majority opinion is sweeping in scope and has implications that go beyond the price paid for demand response in RTO/ISO markets.  FERC recently indicated that it will ask the full Court of Appeals for an en banc review of the decision.  The decision can be found here.
Continue Reading FERC Order 745 Vacated by the Court Of Appeals, FERC to Seek En Banc Review of the Decision