October Term 2015 · Docket 14-840
Can FERC regulate retail electricity demand as part of wholesale rates?
The dispute centers on whether federal rules for wholesale demand response unlawfully control retail electricity prices.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
General Verrilli argued the Federal Power Act expressly authorizes FERC to regulate wholesale rate processes.
Mr. Phillips argued economic principles support the Commission's approach to demand response.
Mr. Clement represented the Electric Power Supply Association and other power generator organizations.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 12-18 — Transcript, file page 10, lines 12-18
- Official Supreme Court Transcript — file page 10, lines 38-46 — Transcript, file page 10, lines 38-46
- Official Supreme Court Transcript — file page 11, lines 20-24 — Transcript, file page 11, lines 20-24
- Official Supreme Court Transcript — file page 11, lines 30-38 — Transcript, file page 11, lines 30-38
- Official Supreme Court Transcript — file page 12, lines 36-40 — Transcript, file page 12, lines 36-40
- Official Supreme Court Transcript — file page 12, lines 46-50 — Transcript, file page 12, lines 46-50
- Official Supreme Court Transcript — file page 17, lines 34-14 — Transcript, file page 17, lines 34-14
- Official Supreme Court Transcript — file page 26, lines 8-4 — Transcript, file page 26, lines 8-4
- Official Supreme Court Transcript — file page 4, lines 22-46 — Transcript, file page 4, lines 22-46
- Official Supreme Court Transcript — file page 4, lines 48-14 — Transcript, file page 4, lines 48-14
- Official Supreme Court Transcript — file page 4, lines 8-20 — Transcript, file page 4, lines 8-20
- Official Supreme Court Transcript — file page 59, lines 34-36 — Transcript, file page 59, lines 34-36
- Official Supreme Court Transcript — file page 6, lines 12-46 — Transcript, file page 6, lines 12-46
- Official Supreme Court Transcript — file page 7, lines 52-8 — Transcript, file page 7, lines 52-8
- Official Supreme Court Transcript — file page 8, lines 12-22 — Transcript, file page 8, lines 12-22
- Official Supreme Court Transcript — file page 8, lines 34-40 — Transcript, file page 8, lines 34-40
- Official Supreme Court Transcript — file page 9, lines 8-34 — Transcript, file page 9, lines 8-34
A citizen's guide to the whole case
What this case is about
The Federal Energy Regulatory Commission issued rules for wholesale demand response. These rules allow utilities to pay customers to reduce peak usage. The Electric Power Supply Association challenged these rules. They argued the rules intrude on state authority over retail rates.
Official sources for this section
- Official Supreme Court Transcript — file page 17, lines 34-14 — Transcript, file page 17, lines 34-14
- Official Supreme Court Transcript — file page 26, lines 8-4 — Transcript, file page 26, lines 8-4
- Official Supreme Court Transcript — file page 4, lines 22-46 — Transcript, file page 4, lines 22-46
How the case got here
The Supreme Court heard oral argument in this case on October 14, 2015.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 8-20 — Transcript, file page 4, lines 8-20
- Official Supreme Court Transcript — file page 59, lines 34-36 — Transcript, file page 59, lines 34-36
What each side wants
The Commission wants the Court to uphold its wholesale demand response rules.
The Association wants the Court to strike down the rules as exceeding federal power.
Official sources for this section
- Official Supreme Court Transcript — file page 17, lines 34-14 — Transcript, file page 17, lines 34-14
- Official Supreme Court Transcript — file page 26, lines 8-4 — Transcript, file page 26, lines 8-4
- Official Supreme Court Transcript — file page 4, lines 22-46 — Transcript, file page 4, lines 22-46
What each side says
The Commission argues the Federal Power Act authorizes regulating wholesale rate-setting processes.
The Association argues the rules effectively regulate retail rates, which states control.
Official sources for this section
- Official Supreme Court Transcript — file page 17, lines 34-14 — Transcript, file page 17, lines 34-14
- Official Supreme Court Transcript — file page 26, lines 8-4 — Transcript, file page 26, lines 8-4
- Official Supreme Court Transcript — file page 4, lines 22-46 — Transcript, file page 4, lines 22-46
What the justices asked
Justice Scalia asked if FERC can strip its own power by yielding to state vetoes.
Justice Scalia questioned whether paying people not to use electricity falls within FERC's power.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 12-18 — Transcript, file page 10, lines 12-18
- Official Supreme Court Transcript — file page 10, lines 38-46 — Transcript, file page 10, lines 38-46
- Official Supreme Court Transcript — file page 11, lines 20-24 — Transcript, file page 11, lines 20-24
- Official Supreme Court Transcript — file page 11, lines 30-38 — Transcript, file page 11, lines 30-38
- Official Supreme Court Transcript — file page 12, lines 36-40 — Transcript, file page 12, lines 36-40
- Official Supreme Court Transcript — file page 12, lines 46-50 — Transcript, file page 12, lines 46-50
- Official Supreme Court Transcript — file page 4, lines 48-14 — Transcript, file page 4, lines 48-14
- Official Supreme Court Transcript — file page 59, lines 34-36 — Transcript, file page 59, lines 34-36
- Official Supreme Court Transcript — file page 6, lines 12-46 — Transcript, file page 6, lines 12-46
- Official Supreme Court Transcript — file page 7, lines 52-8 — Transcript, file page 7, lines 52-8
- Official Supreme Court Transcript — file page 8, lines 12-22 — Transcript, file page 8, lines 12-22
- Official Supreme Court Transcript — file page 8, lines 34-40 — Transcript, file page 8, lines 34-40
- Official Supreme Court Transcript — file page 9, lines 8-34 — Transcript, file page 9, lines 8-34
Why it matters
This case defines the boundary between federal wholesale regulation and state retail control. It determines who sets the rules for peak electricity demand. The outcome shapes how utilities manage grid reliability and consumer costs.
Official sources for this section
- Official Supreme Court Transcript — file page 17, lines 34-14 — Transcript, file page 17, lines 34-14
- Official Supreme Court Transcript — file page 26, lines 8-4 — Transcript, file page 26, lines 8-4
- Official Supreme Court Transcript — file page 4, lines 22-46 — Transcript, file page 4, lines 22-46
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 12-18 — Transcript, file page 10, lines 12-18
- Official Supreme Court Transcript — file page 10, lines 38-46 — Transcript, file page 10, lines 38-46
- Official Supreme Court Transcript — file page 11, lines 20-24 — Transcript, file page 11, lines 20-24
- Official Supreme Court Transcript — file page 11, lines 30-38 — Transcript, file page 11, lines 30-38
- Official Supreme Court Transcript — file page 12, lines 36-40 — Transcript, file page 12, lines 36-40
- Official Supreme Court Transcript — file page 12, lines 46-50 — Transcript, file page 12, lines 46-50
- Official Supreme Court Transcript — file page 4, lines 48-14 — Transcript, file page 4, lines 48-14
- Official Supreme Court Transcript — file page 4, lines 8-20 — Transcript, file page 4, lines 8-20
- Official Supreme Court Transcript — file page 59, lines 34-36 — Transcript, file page 59, lines 34-36
- Official Supreme Court Transcript — file page 6, lines 12-46 — Transcript, file page 6, lines 12-46
- Official Supreme Court Transcript — file page 7, lines 52-8 — Transcript, file page 7, lines 52-8
- Official Supreme Court Transcript — file page 8, lines 12-22 — Transcript, file page 8, lines 12-22
- Official Supreme Court Transcript — file page 8, lines 34-40 — Transcript, file page 8, lines 34-40
- Official Supreme Court Transcript — file page 9, lines 8-34 — Transcript, file page 9, lines 8-34
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 17, lines 34-14 — Transcript, file page 17, lines 34-14
- Official Supreme Court Transcript — file page 26, lines 8-4 — Transcript, file page 26, lines 8-4
- Official Supreme Court Transcript — file page 4, lines 22-46 — Transcript, file page 4, lines 22-46
- Official Supreme Court Transcript — file page 17, lines 34-14 — Transcript, file page 17, lines 34-14
- Official Supreme Court Transcript — file page 26, lines 8-4 — Transcript, file page 26, lines 8-4
- Official Supreme Court Transcript — file page 4, lines 22-46 — Transcript, file page 4, lines 22-46
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.