A U.S. appeals court Sept. 17 denied the Federal Energy Regulatory Commission\u2019s request for a rehearing on the invalidation of its demand-response program. The D.C. Circuit Court of Appeals declined to consider its three-judge panel\u2019s majority ruling that held May 23 the commission\u2019s program\u2014which allows aggregated negawatts to be sold into its wholesale market, thus marketing energy savings\u2014crossed the nebulous border between federal and state jurisdiction. During a Sept. 18 agency business meeting, commissioner Phil Moeller bemoaned his agency\u2019s loss of jurisdiction of demand-response. \u201cIt means real money to real consumers,\u201d Moeller said. He pointed out that programs to curb consumer demand to increase reliability and lower costs now only are in the states\u2019 bailiwick. The rehearing denial \u201cdoesn\u2019t mean we have to ignore demand-response,\u201d countered commissioner Tony Clark. He supported the panel\u2019s ruling striking down the program. He called FERC\u2019s order \u201ca jurisdiction bridge too far.\u201d State programs, he added. \u201ccan be measureable and verifiable, offering great potential" when combined with advanced metering to help lower power prices. Demand-response officials, who had supported the commission\u2019s appeal seeking to uphold its Order 745, raised concerns about an invalidation of the federal demand-response market. Invalidation could result in aggregators having to refund revenue from selling negawatts in PJM\u2019s wholesale energy market, which is the only one that implemented the federal policy. Negawatt aggregators also have contracts with California utilities. Pointing to its authority under the Federal Power Act, FERC asserted in its July 7 petition for rehearing that, \u201cThe nation\u2019s competitive wholesale electricity markets and reliable electric service depend upon the existing integration of demand response.\u201d Commissioner Cheryl LaFleur said Thursday that the commissioners will work together to decide both what to do about the action denying a hearing en banc and how to respond to the market response. Demand-response programs help balance the transmission system by providing negawatts when customers ratchet down energy use at the direction of grid operators in exchange for payments. The federal agency declined to say whether it would appeal the ruling. The decision can be appealed to the U.S. Supreme Court.