Rethinking Regulation Across State Lines

Posted October 29, 2015 at 11:07am

Working Capital Review reports that “Lyle Denniston  analyzes the oral arguments in Federal Energy Regulatory Commission v. Electric Power Supply Association, a case currently before the Supreme Court that ‘affects billions of dollars in the nation’s market for electricity, and could affect whether the nation’s power grid collapses in a blackout or at least a brownout.’”  

“’Since the Constitution was adopted, the United States has always had two levels of government — a national government that handles things which affect the states collectively, and state governments that look after matters within their borders. But it is not always easy to know where the dividing line is, even when Congress tried to describe one. The FERC case is a near-perfect illustration of that difficulty: where did Congress draw the line for regulating the price of electricity — in producing it and in delivering it to the ultimate user? Who oversees the wholesale and retail prices, respectively, especially when each quite naturally affects the other?’”  

The post continues: “Utility Dive  lays out how the Supreme Court’s ruling on FERC’s so-called ‘demand response’ policy could affect the electricity market.”