EPSA was pleased to hear that nominees to serve as commissioners of the Federal Energy Regulatory Commission committed to uphold FERC’s mission to ensure cost-effective and reliable energy at last Thursday’s confirmation hearing in the Senate Energy and Natural Resources Committee. If confirmed, the three nominees would bring FERC to a full ensemble, with a three Democrat – two Republican split among commissioners.
Reliable and Cost-Effective
Nominees were directly asked if they would uphold FERC’s mandate as an independent agency, ensuring Americans have access to reliable energy and the rates charged would be just and cost-effective. All responded that they would, agreeing that FERC was an economic regulator that must remain technologically and fuel neutral to fulfill its mandate. Nominee David Rosner, a current energy industry analyst for FERC, summarized it best, saying:
“The American public is best served by a regulator that embraces the durability of a fuel neutral approach to its decision making. . . The grid works best when we allow the grid resources to provide all of the services that they’re technically capable of providing regardless of what fuel is powering them.”
Ensuring resources have equal access to the market is vitally important if they are to provide all the benefit they can. Nominee Lindsay See, solicitor general of West Virginia, expressed interest in ensuring the Commission uses its rate making authority in the organized market to send the right price signals and incentives for the benefit of rate payers so that “just and reasonable rates [flow] from a fair interstate electricity market.”
Nominee Judy Chang, former Undersecretary of Energy and Climate Solutions for Massachusetts, Rosner, and See all consider the markets a benefit for customers, due to its role in improving efficiency, increasing reliability, and reducing emissions in interconnected regions.
Bringing Resources to Bear
All nominees confirmed natural gas’s place in the future of the power grid, emphasizing the benefits that a diverse energy mix provides. Chang described each resource as having its “own role to play in addressing the need for dispatchable power and ensuring reliable service for our nation.” In an effort to guarantee that these resources can play a role in the grid of the future, Senators asked the nominees about their views on interconnection reform and pipeline authorization.
The nominees agreed that there are a number of barriers to entry in bringing new resources online and affirmed their commitment to working with FERC staff and Congress to clear the interconnection backlog and streamline the process. Rosner emphasized that connecting new technology to the grid would deliver economic opportunity, supplying demand to new industries, like power-hungry AI start-ups and data centers.
On the topic of pipelines, See described the importance for FERC to examine pipeline infrastructure as it relates to securing dispatchable power amid natural gas’s critical role in delivering grid reliability.
Chang’s role in restricting the development of natural gas infrastructure in New England was scrutinized by Sen. Barrasso, but she assured him that “if I could wave my magic wand, I would love to have more gas infrastructure and gas supply to New England,” and later reaffirmed her position on natural gas’s value to Sen. Cassidy, stating that “[New England] will need as much natural gas generation as we have today in New England to facilitate the reliable grid.” Chang also committed to upholding FERC’s responsibility in approving pipeline projects as an independent body that does not follow political preference towards one resource or technology.
Awaiting Confirmation
The confirmation hearing showed that the nominees were committed to the foundational importance of ensuring the reliability and affordability of the energy system. Their perspective on fuel and technology neutrality will be vital to meeting the rising energy demand across the country and reducing costs for rate payers. Fortunately, all the nominees appear to take FERC’s oversight responsibility of the wholesale market seriously, and are interested in a functional marketplace that sends accurate price signals to generators, as well as streamlining the interconnection process to bring additional resources online.
Senate Energy and Natural Resources Committee has not yet scheduled a business meeting to consider and vote on the nominations, however, they are likely to move as package deal according to Axios.
