The Obama Administration’s crusade against carbon returned to the Supreme Court on Wednesday, as the Justices heard an important federalism challenge to an energy scheme that usurps state powers to promote the green agenda. The oral arguments suggested they may be queueing up another judicial rebuke.
The culprit this time is the Federal Energy Regulatory Commission, or FERC, which regulates most of the electric grid. In 2011 FERC ordered transmission operators to pay retail energy users to reduce their power consumption during peak periods, a program known as “demand response.” The idea is to send a price signal to encourage large consumers to use power when the most capacity is available—instead of, say, on a hot summer afternoon when everybody’s air conditioners are running.