Supreme Court upholds “demand-response” programs

The U.S. Supreme Court has “cleared the way for businesses to continue using ‘demand-response’ programs,” ruling 6-2 in favor of the energy-saving method, The Columbus Dispatch reports. Demand-response programs offer payment to companies “in exchange for being on call to cut electricity usage on days of unusually high demand,” according to the article. Eric Burkland, president of the Ohio Manufacturers’ Association, called the decision a victory; many members of his group participate in demand-response programs. The Electric Power Supply Association had “argued successfully in a lower court that federal energy regulators had overstepped their bounds by allowing demand response.” Critics of demand-response have said such programs artificially lower electricity prices. Justice Elena Kagan wrote for the majority, saying regulators have the authority to help maintain the reliability of the market. The programs “lead to substantial savings in electricity costs because they reduce demand at times when market prices would be highest” and by reducing power usage, also reduce power-plant emissions, the Dispatch reports. A 2014 PJM Independent Market Monitor report estimated demand response was responsible for a $9 billion price difference for consumers in a multi-state region. For more, read the full article

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