FERC Order 745

2011

March 15: FERC issues Order 745

In this Final Rule, the Federal Energy Regulatory Commission (Commission) amends its regulations under the Federal Power Act to ensure that when a demand response resource participating in an organized wholesale energy marketadministered by a Regional Transmission Organization (RTO) or Independent System Operator (ISO) has the capability to balance supply and demand as an alternative to a generation resource and when dispatch of that demand response resource is cost-effective as determined by the net benefits test described in this rule, that demand response resource must be compensated for the service it provides to the energy market at the market price for energy, referred to as the locational marginal price (LMP). This approach for compensating demand response resources helps to ensure the competitiveness of organized wholesale energy markets and remove barriers to the participation of demand response resources, thus ensuring just and reasonable wholesale rates.

View FERC Order 745 here.

2014

May 23: U.S. Court of Appeals nullifies FERC Order 745 in a 2-1 ruling. View the court decision here.

June 11: FERC requests an en banc re-hearing of the case. View the news release here.

September 18: The U.S. Court of Appeals denies en banc re-hearing of the case.

September 22: FERC urges the court to not finalize its ruling on 745. View the request here. Other groups filed a similar request here.

October 20: U.S. Court of Appeals grants FERC's request for a stay on the decision. Read more here.

December 12: White House announces it will take the case to the Supreme Court and requests more time for a formal petition. Read more here.

December 15: DC Circuit Court of Appeals declined to vacate Order 745 until an appeal to the Supreme Court has played out.

2015

January 15: Justice Department files writ with the Supreme Court asking it to review the ruling that vacated FERC Order 745. Read the writ here.

May 4: US Supreme Court decides to hear the case. They will address FERC’s jurisdiction and whether or not the rule was arbitrary and capricious (LMP vs LMP-G). Read the decision here.

October 15: Supreme Court Oral Argument scheduled

Resources

Order Instituting Reform of the Energy Vision (NY REV - April 25, 2020)

21st Century Electric Distribution System Operations (CAISO and Caltech Resnick Institute - May 2014)

D.C. Circuit Kills Demand Response Compensation: Now What? (Scott Hempling - June 2014)

The Effects of 111(d) and Order 745 on DR & Smart Grid (ADS Webinar - July 8, 2020)

CPUC Rulemaking - Distribution Resources Plan Proposal (CPUC - August 20, 2020)

The Evolution of Demand Response in the PJM Wholesale Market (PJM - October 6, 2020)

CPUC Rulemaking - Enhancing role of DR (CPUC - December 9, 2020)

CPUC Rulemaking - Distribution Resource Planning (CPUC - February 6, 2020)

CPUC Rulemaking - Cost recovery for Demand Response direct participation (CPUC - February 20, 2020)

Proceeding on Motion of the Commission in Regard to Reforming the Energy Vision Order Adopting Regulatory Policy Framework and Implementation Plan (NY Rev - February 26, 2020)