SCOTUS takes up appeal on energy rule

The Supreme Court announced Monday that it will consider an Obama administration appeal to a lower court ruling that struck down a regulation meant to encourage energy conservation.

The court said it would hear the Federal Energy Regulatory Commission’s (FERC) appeal to a 2014 lower-court ruling against its “demand response” regulations, which are designed to cut electricity demand through electric grid operator payments to users who cut their consumption.

{mosads}FERC’s rules, from 2011, require energy wholesalers to compensate large consumers who reduce their demand at the same rate as the payments made to energy producers.

The Electric Power Supply Association, which represents utility companies, had challenged the regulation, and a lower court ruled against FERC last May.

When the Supreme Court hears the case during its fall term, it will consider whether FERC exceeded its authority in setting the compensation rates and whether the lower court erred in its interpretation of the rule.

Justice Samuel Alito will recuse himself from the case, the court announced.