Demand response (DR) is a critically important tool for creating a more flexible power grid. The Department of Energy recently concluded that DR can enable greater deployment of renewables and reduce new transmission investment. The Federal Energy Regulatory Commission (FERC) reported that DR lowers wholesale power prices and enhances reliability during extreme weather. New market entrants like Google, which has partnered with utilities to enroll Nest owners in DR programs, have the ability to make DR a ubiquitous resource. But the fate of a key financing and deployment mechanism for DR is now in the hands of the Supreme Court.
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