Demand Response Industry and Consumer Coalition Reacts to U.S. Circuit Court Decision

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The Advanced Energy Management Alliance (AEMA) reacts with disappointment in the U.S. Circuit Court decision not to rehear en banc the decision issued in May to vacate the Federal Energy Regulatory Commission’s Order 745.

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Empowering Consumers through Demand Response

The Advanced Energy Management Alliance (AEMA) today reacted with disappointment in the U.S. Circuit Court decision (U.S. Court of Appeals for the District of Columbia Circuit, No. 11-1486) not to rehear en banc the decision issued in May to vacate the Federal Energy Regulatory Commission’s Order 745.

"We are disappointed but not surprised about this decision," said Katherine Hamilton, Executive Director of AEMA. "It is rare that the court grants rehearing en banc. We will continue supporting FERC’s efforts on wholesale demand response while also engaging with states to ensure that consumers have more control over their costs, while enhancing the reliability of the grid.”

FERC Order 745 was a landmark order that recognized the value of demand response resources and consumer access to those resources in wholesale energy markets. When the D.C. Circuit issued its decision in May, six different parties subsequently requested the Court rehearing, including FERC and the states of Pennsylvania, Maryland, and California.

Demand response has provided critical service to the grid that has been tested during times of high peak summer and winter demands, as during the Polar Vortex. In addition to decreasing grid reliability and flexibility, this decision stands to significantly increase costs to households, businesses and other energy consumers throughout much of the country. For example, in 2013 alone, demand response saved electricity users in the mid-Atlantic $11.8 billion, according to a report on the market effectiveness of the PJM Interconnection by that region’s independent market monitor.

AEMA will continue advocating for consumers to have the ability to participate in demand response programs throughout the nation by educating system operators and federal and state policymakers.

About AEMA:
The Advanced Energy Management Alliance (AEMA) is an association of providers and supporters of demand response united to overcome barriers to nationwide use of demand response for an environmentally preferable and more reliable grid. AEMA advocates policies that empower and compensate customers to manage their energy usage and make the electric grid more efficient, more reliable, more environmentally friendly, and less expensive.

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Katherine Hamilton
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