Supreme Court Docket Report - May 4, 2015

Today, the Supreme Court granted certiorari in one case of interest to the business community:

Federal Power Act—Federal Regulation of Demand Response in the Wholesale Energy Market

The Federal Power Act grants the Federal Energy Regulatory Commission exclusive jurisdiction over "the sale of electric energy at wholesale in interstate commerce." 16 U.S.C. § 824(b)(1). FERC may regulate any "rule, regulation, practice, or contract affecting [a wholesale] rate." Id. § 824e(a). But only states may regulate "any other sale of electric energy"—namely retail sales to consumers. Id. § 824(b)(1). Pursuant to the Federal Power Act, FERC adopted Order 745 addressing "demand response," an innovation in energy markets that manages prices during periods of high demand by providing incentives to consumers to reduce consumption. Demand response is accomplished either by raising energy prices or compensating consumers for reduced energy consumption during peak periods.