NRECA joins opposition to FERC request for Supreme Court hearing on Order 745

The National Rural Electric Cooperative Association (NRECA) joined organizations representing the full spectrum of energy supply and delivery in the U.S. to oppose a petition from the Federal Energy Regulatory Commission (FERC) asking the Supreme Court to hear arguments on FERC Order 745.

NRECA joined other energy trade groups in opposing Order 745 on the grounds that, in setting the level of demand response compensation, FERC was overstepping its jurisdictional authority. In May 2014, the D.C. Circuit agreed and vacated the order.

Order 745 would require regional transmission organizations (RTOs) and independent system operators (ISOs) to compensate demand response resources at full locational marginal pricing (LMP) under certain conditions.

America’s electric cooperatives have managed demand response programs for decades. They use demand response to shave peak load, manage voltage, maintain local distribution and transmission system reliability and to help balance the variability of intermittent resources output. According to the Energy Information Administration, in 2012 the cooperatives’ share of total retail electric sales was 11 percent, yet they were responsible for more than 19 percent of actual peak reduction.

In January 2015, the US Solicitor General, on behalf of FERC, filed a petition for writ of certiorari with the U.S. Supreme Court to review the D.C. Circuit’s judgment. NRECA joins with the Electric Power Supply Association, American Public Power Association, Edison Electric Institute and Old Dominion Electric Cooperative in the brief filed today opposing the petition.

The National Rural Electric Cooperative Association is the national service organization that represents the nation’s more than 900 private, not-for-profit, consumer-owned electric cooperatives, which provide service to 42 million people in 47 states.

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