FERC’s ‘Demand Response’ Rule Upheld by U.S. Supreme Court

The U.S. Supreme Court is seen on Aug. 1, 2015, in Washington.

Photographer: KAREN BLEIER/AFP/Getty Images
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The U.S. Supreme Court upheld a federal rule aimed at encouraging industrial consumers to cut electricity use, in a victory for the Obama administration and environmentalists and a blow to power generators.

The justices, in a 6-2 vote on Monday, said the Federal Energy Regulatory Commission acted within its authority with the order, which sets rates for “demand response” payments to large electricity users that cut consumption. The court also upheld the formula used by FERC.