FERC Orders

Order 745 — Demand Response Compensation (2011)

Definition

Required organized wholesale energy markets to accept economic demand response and compensate it at locational marginal price (LMP) when it passes a net-benefits test, treating cost-effective load reductions as full participants in day-ahead and real-time energy markets. The rule was vacated by the D.C. Circuit in EPSA v. FERC (2014) but reinstated by the Supreme Court in 2016, affirming FERC jurisdiction over demand response in interstate wholesale markets.

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FERC Orders

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