⚖ Oral Arguments, with Context

The Fifth Circuit hears Vistra and other electricity producers challenge a federal rule ending certain payments for reactive power. Unlike the real power that runs appliances, reactive power supports the voltage needed to deliver electricity reliably. Some grid operators separately paid generators for that support within a standard operating range, often called the dead band. Order 904 from FERC ends those charges in transmission rates; payments outside that range are not eliminated by this rule. FERC reaffirmed the rule after rehearing, and the generators sought judicial review. The generators' lawyers will argue that equipment costs and lost opportunities to sell electricity make the rule unreasonable. They will also argue that long-term contracts and investments relied on revenues the rule removes. The lawyer for FERC will argue that this is a normal obligation of connecting to the grid, with little or no additional cost. She will say generators can recover costs through electricity markets rather than separate charges to transmission customers. The questions are who should bear these costs, and whether the agency adequately considered the evidence and reliance on the old payment system.

Vistra v. FERC (No. 25-60055) — U.S. Court of Appeals for the Fifth Circuit, argued November 4, 2026.