"WASHINGTON — The Supreme Court on Monday agreed to decide whether federal regulators may encourage electricity users like schools, hospitals and shopping centers to reduce consumption at peak times in exchange for price breaks.

The regulatory approach, known as “demand response,” lowers costs for consumers and lessens the risk of system failures that can cause blackouts. But it also cuts into the profits of companies that own power plants, which lose money when price spikes are avoided.

Trade groups representing utilities and power suppliers challenged the regulation, saying that the Federal Energy Regulatory Commission had overstepped its authority. The commission oversees wholesale transactions under the Federal Power Act, but the states regulate retail transactions."

Adam Liptak reports for the New York Times May 4, 2015. [2]