Jeremy Hsu, of Scientific American, reports that a 6-2 U.S. Supreme Court ruling upholds a regulation that requires utilities to pay more to customers who conserve power during times of peak demand. In response Hsu opines that Any American who pays electricity bills has good reason to care that earlier this week the U.S. Supreme Court voted in support of a federal rule to compensate customers who conserve energy during peak periods. The practice can reduce the chance for blackouts and lower electricity prices for everyone by easing loads on the power grid as well as promote energy conservation, uncited experts say.
The main legal issue was whether the Federal Energy Regulatory Commission (FERC) has the authority to regulate such programs, known as demand response. FERC authority technically covers wholesale electricity markets that buy and sell electricity across state lines. Such benefits go beyond cheaper electricity prices by helping shape the future power grid. Such benefits go beyond cheaper electricity prices by helping shape the future power grid. Demand response can balance the unpredictability of renewable power sources such as wind turbines or solar farms, says Jaden Crawford, an independent advisor and consultant on electricity markets. That allows the power grid to remain reliable even as it adds clean power sources.
The Supreme Court ruling impact may come from easing uncertainty about the role of demand response in electricity markets, experts say. As a result, they envision much more innovation in smart meters and advanced building control systems over the next decade or two. Many more homes and businesses could someday monitor their power usage and automatically turn down the air conditioning or switch off lights when needed, a truly powerful form of demand response. Good read ...
Original working URL: https://www.scientificamerican.com/article/how-a-supreme-court-decision-affects-your-electricity-bill/?WT.mc_id=SA_ENGYSUS_20160204
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