Supreme Court ruling on demand response expected to benefit smart grid

A recent Supreme Court ruling is good news for consumers and businesses with small-scale electric power generating capacity that participate in demand response programs. The high court overturned a decision of the D.C. Circuit Court of Appeals that had vacated a Federal Energy Regulatory Commission order. The Supreme Court thereby established an economic equivalency between actions that take place on the customer side of the meter with those that take place in wholesale electric markets.

It means that FERC can continue to hold that small electric power generators, including businesses and residences, can have their power priced at the wholesale rate. As a result, existing demand response programs will not have to change or be eliminated.