Demand Response and Market Power

100 Iowa Law Review Bulletin 87 (2015)

Notre Dame Legal Studies Paper No. 1511

11 Pages Posted: 17 May 2015

Date Written: May 15, 2015


In her article, Bypassing Federalism and the Administrative Law of Negawatts, Sharon Jacobs educates her readers about the concept of demand response, and then describes its propagation in recent years while making the broader argument that the Federal Energy Regulatory Commission (“FERC”) — the federal government’s principal energy regulator — has engaged in a strategy of “bypassing federalism” that may entail more costs than benefits. Professor Jacobs is right to call attention to demand response and to FERC’s approach to matters of jurisdictional doubt. While I share many of her concerns about boundary lines in a federal system, I argue that FERC's demand response program represents a fair and legally defensible attempt to, among other things, diffuse the market power of energy producers. I conclude that wholesale demand response is a tool well worth defending in spite of jurisdictional friction.

Keywords: demand response, federalism, FERC, ISO, RTO, energy, renewable energy, restructuring, regulation, wholesale energy markets, utilities, electricity, smart grid

JEL Classification: L84, K23, K32

Suggested Citation

Huber, Bruce R., Demand Response and Market Power (May 15, 2015). 100 Iowa Law Review Bulletin 87 (2015), Notre Dame Legal Studies Paper No. 1511, Available at SSRN:

Bruce R. Huber (Contact Author)

Notre Dame Law School ( email )

P.O. Box 780
Notre Dame, IN 46556-0780
United States
(574) 631-2538 (Phone)


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