The United States Supreme Court ruled in January, 2016 that the Federal Power Act (FPA) authorizes the Federal Energy Regulatory Commission (FERC) to regulate wholesale market operators’ compensation of demand response participants. It also upheld FERC’s 2011 Demand Response Order 745 which states that demand response providers must be reimbursed at the same price paid to generators. In other words, demand response providers will be compensated for the amount of electricity load that was reduced at the full locational marginal pricing (LMP) rate at the time of load cutback.
Directly following the announcement of the decision, FERC Commissioner Tony Clark issued a statement suggesting regulators should reconsider how demand response is compensated calling into question whether Order 745 would be reopened to possibly changing the compensation mechanism. However, three of FERC’s four commissioners, including FERC Chairman Norman Bay told attendees at the National Association of Utility Regulatory Commissioners winter meeting that they have no intention to reconsider how demand response is valued.
Did you know that June 21st is National Energy Shopping Day? That’s right! The Retail Energy Supply Association (RESA), the nation’s leading trade association representing competitive retail energy suppliers, found in their Survey of Americans that 74% of consumers prefer to select their own energy supplier. Although not every state is deregulated, thirteen states give their residents …
AEP Energy is committed to supporting renewable energy and making it easy for our customers to go green. We’re proud that an increasing number of customers are enrolling in renewable energy plans. Stats by the numbers In 2015, 2% of customers enrolled in a renewable energy plan as compared to 20% of customers today. In …
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Brandi Nye, Managing Director of Business Solutions
Brandi is an expert in her field with professional experience in the sustainability industry. Not only does Brandi have solid base knowledge, but she continues to grow her acumen through various learning and development experiences. Brandi is a creative and thoughtful utility professional with expertise in regulatory and utility operations.