Energy Efficiency

Statement on the Supreme Court’s demand response ruling

Supreme_Court_US_2010Today the Supreme Court upheld the Federal Energy Regulatory Commission’s authority over financial incentives that conserve energy use during peak periods like hot summer days, a strategy known as “demand response.” Electricity Markets Director Holly Lahd released the following statement:

“This ruling is absolutely critical to moving us toward a future where energy is used more efficiently and strategically. Minnesota utilities have already begun utilizing demand response programs in Minnesota, such as optimizing customers’ large electric water heaters and air conditioners to save all ratepayers money.  But we are only beginning to scratch the surface of this potential. As utilities and regulators develop more sophisticated ways to track and implement demand response techniques into the market we will be able to shave our peak energy demand significantly – creating savings for consumers and utilities alike.”

“This ruling is absolutely critical to moving us toward a future where energy is used more efficiently and strategically. Minnesota utilities have already begun utilizing demand response programs in Minnesota, such as optimizing customers’ large electric water heaters and air conditioners to save all ratepayers money. But we are only beginning to scratch the surface of this potential. As utilities and regulators develop more sophisticated ways to track and implement demand response techniques into the market we will be able to shave our peak energy demand significantly – creating savings for consumers and utilities alike.”

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