Supreme Court considers whether regulations encouraging energy savings intruded on state power
The U.S. Supreme Court on Wednesday considered whether the Federal Energy Regulatory Commission had the power to require compensation for large electricity users that reduce consumption during peak demand.
Arguing on behalf of the Electric Power Supply Association, Paul Clement said the regulation required power plant operators to provide the payments in an effort to change the effective price for retail electricity sales. “Now, that sure so sounds like something that belongs to the states” to regulate, he said. The Washington Post, the Wall Street Journal (sub. req.), the New York Times and Supreme Court Brief (sub. req.) have stories on the oral arguments.
The federal government regulates the wholesale market while states regulate the retail market, Supreme Court Brief points out.
Justice Samuel A. Alito Jr. is not participating in the case, raising the possibility of a 4-4 split. That would leave intact a federal appeals court ruling against the agency.
The case is FERC v. Electric Power Supply Association.
