Monday, January 25, 2016 – The U.S. Supreme Court released the opinion in the FERC v. EPSA case this morning. The Court reversed and remanded the ruling back to the appellate court. This is very exciting news for the folks at EnerNOC! Please see summary of the ruling below:
“FERC’s decision to compensate demand response providers at LMP—the same price paid to generators—instead of at LMP-G, is not arbitrary and capricious. Under the narrow scope of review in Motor Vehicle Mfrs. Assn. of United States, Inc. v. State Farm Mut. Automobile Ins. Co., 463 U. S. 29, 43, this Court’s important but limited role is to ensure that FERC engaged in reasoned decision making—that it weighed competing views, selected a compensation formula with adequate support in the record, and intelligibly explained the reasons for making that decision. Here, FERC provided a detailed explanation ofits choice of LMP and responded at length to contrary views. FERC’s serious and careful discussion of the issue satisfies the arbitrary and capricious standard.”