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WASHINGTON -- A federal program designed to reduce peak demand for electricity and prevent blackouts and brownouts won critical support from the Supreme Court Monday.The justices ruled 6-2 that the Federal Energy Regulatory Commission can offer major energy users such as schools and hospitals a cut in prices in exchange for reduced usage. The program lowers consumer costs and reduces the risk of outages.Justice Elena Kagan said the policy "directly affects wholesale prices. Indeed, it is hard to think of a practice that does so more." She was joined by the court's liberal voting bloc as well as Chief Justice John Roberts and Justice Anthony Kennedy.The ruling was a victory for the Obama administration, which has used its authority over wholesale markets to influence a reduction in retail prices when heavy demand threatens the power grid. Former FERC chairman Jon Wellinghoff predicted it would heat up the consumer marketplace for items such as smart thermostats, batteries, solar heating systems and plug-in electric vehicles."The impact for consumers will be massive -- hundreds of billions of dollars over the next 20 years," Wellinghoff said in a statement.The case pitted the commission's interest in balancing the supply and demand of electricity, particularly during hot summer and cold winter months, against power generators and electric service providers whose profits are affected. They argued that the regulation is an intrusion into state power markets, which use other means to control peak demand.The federal regulation encourages operators of the electric wholesale market to pay consumers in 24 states who agree to cut electricity use at peak demand times and places. The idea is to control demand rather than increase supply, which can be more expensive and less environmentally sound.
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Topic: Supreme Court upholds U.S. effort to control peak power use, prevent blackouts (Read 238 times)
