ARTICLE
16 June 2025

FCC Confirms Utilities Demand Response Communications Are Permissible Under The Telephone Consumer Protection Act

MB
Mayer Brown

Contributor

Mayer Brown is a distinctively global law firm, uniquely positioned to advise the world’s leading companies and financial institutions on their most complex deals and disputes. We have deep experience in high-stakes litigation and complex transactions across industry sectors, including our signature strength, the global financial services industry.
On June 9, 2025, the Federal Communications Commission ("Commission") issued a declaratory ruling clarifying that utilities may send non-telemarketing, time-sensitive "demand-response" calls and texts to customers...
United States Media, Telecoms, IT, Entertainment

On June 9, 2025, the Federal Communications Commission ("Commission") issued a declaratory ruling clarifying that utilities may send non-telemarketing, time-sensitive "demand-response" calls and texts to customers who have provided their phone numbers to the utilities, without obtaining additional consent to do so. The ruling, which was made in response to a petition from the Edison Electric Institute ("EEI"), affirms that such communications are "closely related" to utility services and fall within the scope of prior express consent under the Telephone Consumer Protection Act ("TCPA").

Background: The TCPA, Utility Communications, and EEI's Petition

The TCPA generally restricts the use of robocalls and robotexts made using an automatic telephone dialing system (known as an autodialer) to consumers. Telemarketing or advertising robocalls and robotexts require consumers' prior express consent, while informational messages that are closely related to the service for which a consumer signs up are permissible.

In 2016, the Commission clarified that, in the utility context, these "closely related" calls and texts include outage notifications, service updates, notification of meter work or field work, notification of potential eligibility for subsidized or low-cost service, and information about potential brown-outs. As a result, prior express consent to receive robocalls and robotexts related to these issues is not required. However, the scope of this consent regarding "demand-response" communications—i.e., messages encouraging customers to reduce or shift energy use during peak demand—remained unsettled. As a result, EEI's petition sought explicit confirmation that utilities may send demand-response communications to customers based solely on the provision of a phone number.

Ruling and Implications

The Commission's ruling confirms that these communications do not require additional prior express consent. Specifically, the ruling states:

  • Utilities' demand-response communications are "closely related" to utility service.
  • When a customer provides their phone number to a utility, they consent to receiving non-telemarketing demand-response communications, which can be critical and time-sensitive.
  • Utilities are not required to obtain additional consent from customers for these communications, thus streamlining customer outreach and supporting grid reliability and the efficient management of grid infrastructure.
  • The ruling does not apply to telemarketing or advertising messages, which remain subject to the TCPA's consent requirements.
  • Demand-response communications are distinct from general energy-savings marketing, as the former are targeted, short-term and time-sensitive, and directly tied to grid reliability and service continuity.

Ultimately, the Commission notes that the ruling gives utilities greater certainty and flexibility to implement demand-response programs, helping manage grid stress and prevent service disruptions. Meanwhile, customers will benefit from timely, relevant information and retain the right to opt out of such communications.

This ruling provides further clarity with respect to how the Commission interprets the term "closely related" in the context of TCPA compliance. While it does not change the Commission's underlying approach to consent under the TCPA with respect to marketing and advertising calls and texts, the ruling demonstrates the Commission's willingness to expand the types of calls and texts that the agency deems informational and thus not subject to prior express consent.

Mayer Brown is a global services provider comprising associated legal practices that are separate entities, including Mayer Brown LLP (Illinois, USA), Mayer Brown International LLP (England & Wales), Mayer Brown (a Hong Kong partnership) and Tauil & Chequer Advogados (a Brazilian law partnership) and non-legal service providers, which provide consultancy services (collectively, the "Mayer Brown Practices"). The Mayer Brown Practices are established in various jurisdictions and may be a legal person or a partnership. PK Wong & Nair LLC ("PKWN") is the constituent Singapore law practice of our licensed joint law venture in Singapore, Mayer Brown PK Wong & Nair Pte. Ltd. Details of the individual Mayer Brown Practices and PKWN can be found in the Legal Notices section of our website. "Mayer Brown" and the Mayer Brown logo are the trademarks of Mayer Brown.

© Copyright 2025. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More