WASHINGTON — The Supreme Court seems troubled by a federal regulation backed by environmental groups that requires utilities to pay electric customers who save energy during times of peak demand.
The justices heard arguments Wednesday over whether the Federal Energy Regulatory Commission overstepped its authority when it adopted the program, known as demand response.
The Obama administration and other supporters of the rule say it has helped consumers save billions in energy costs, improved reliability of the power grid and helped reduce air pollution since it was put in place in 2011. But a federal appeals court ruled 2-1 last year that it intrudes on state power over retail electricity sales.
Several justices seemed concerned that the program has too much of an impact on retail rates.
