The high voltage grid is managed by the Federal Energy Regulatory Commission (FERC). Demand Response is defined by FERC as, “Changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.”

Demand Response typically applies to actions taken by larger users to reduce their electricity demand in response to the wholesale cost of electricity on an hour by hour basis. Emergency Load Response is a program that compensates electricity users for reducing their demand in response to signals from grid management that the grid is being over-stressed. Emergency Load Response is voluntary.

On January 25th, the US Supreme Court made a decision in the case of FERC v. Electric Power Suppliers Association. The decision affirms FERC’s authority to design rules and incentives governing Demand Response.

The decision is being hailed by environmentalists and smart grid advocates as a step forward in reducing energy consumption. The Electric Power Suppliers Association opposed FERC’s authority because it gave FERC control over the financial health of power plants. Lower court decisions favored the power plant owners and asserted States have authority over demand response procedures.

You can read more details at RenewableEnergyWorld.com. — John Rako