Electric Power Supply Assoc. v. FERC, No. 11-1486 (D.C. Cir. 2014)Annotate this Case
Petitioners sought review of FERC's final rule governing what FERC calls "demand response resources in the wholesale energy market." The rule sought to incentivize retail customers to reduce electricity consumption when economically efficient. The court concluded that, because FERC's rule entails direct regulation of the retail market - a matter exclusively within state control - it exceeds the Commission's authority. Alternatively, even if the court assumed that FERC had statutory authority to execute the final rule, Order 745 would still fail because it was arbitrary and capricious. Given Order 745's regulation of the retail market, the court vacated the rule in its entirety as ultra vires agency action. Accordingly, the court vacated and remanded the rulings.