EPSA, NEPGA seek federal appeals court review of New England “demand response” orders

WASHINGTON, D.C. – The Electric Power Supply Association (EPSA) and the New England Power Generators Association (NEPGA) jointly filed a petition for review with the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) on Monday, July 16, 2012.

The petition seeks review of two orders from the Federal Energy Regulatory Commission (FERC) relating to how so-called “demand response” should be compensated in the ISO-New England regional electricity market.

At issue is the compliance filing made by ISO-New England to implement FERC’s controversial Order 745 requiring what EPSA and NEPGA view as excessive compensation to “demand response” providers at the expense of the backbone source of electricity supply in the New England region. Specifically, FERC’s orders allow “demand response” that is actually behind-the-meter power generation to be compensated without following the rules applicable to EPSA and NEPGA members whose power plant assets keep the lights on in the six states in New England.

“The ISO-New England compliance filing is only the first out of the box from the nation’s regional power grid operators so we can expect this issue to keep coming up again and again,” said EPSA President & CEO John E. Shelk. “EPSA supports properly priced and comparably regulated demand response. Unfortunately, in the orders at issue in this litigation FERC is unlawfully discriminating against back bone power plants and their customers by imposing a federal mandate to allow certain entities to engage in power generation without being held to the rules the rest of us must follow.”

NEPGA President Dan Dolan said, “The FERC orders covered by this petition for review would distort competitive markets by allowing behind the meter generation to qualify as ‘demand response’ when it is really another form of generation. New England has often led in the development of competitive power markets to serve 14 million consumers reliably and efficiently. Those wishing to enter the power generation business should do so on equal terms with the plants most customers depend on for reliable electric service.”