Nominees to fill three FERC vacancies said they would put energy affordability and reliability above other concerns if selected for the positions. They also said a buildout of natural gas infrastructure may be needed to support the growing energy needs of the United States.
The Senate Committee on Energy and Natural Resources last week questioned President Biden’s nominees to the Federal Energy Regulatory Commission. The president in February nominated Democrats Judy Chang and David Rosner, as well as Republican Lindsay See.
The nominees would fill three expected vacancies at FERC, which must have a minimum three-person quorum in order to operate. Commissioner Allison Clements, a Democrat, is planning to leave in June.
Senate Chair Joe Manchin (D-WV) led the questioning, and each acknowledged that ensuring reliability is the principal duty of FERC.
Rosner, a staffer for the Senate committee who was tapped by Manchin, opened his remarks saying that FERC’s “No. 1 job is reliability. The American people need it, they expect it, they deserve it. This is the part of FERC’s mission that touches every aspect of our economy and American life.”
Chang, an energy economics and policy expert and formerly the Massachusetts undersecretary of Energy and Climate Solutions, said, “I do believe in making sure reliability is No. 1 because…without reliability, we can't even transition, and no one in this country will tolerate any outages.”
See, Solicitor General of West Virginia, said, reliability “is critically important, particularly in this time where we’re seeing changes in demand and load and seeing changes in stressors on the sources we have.”
‘Important Role’ For Gas
The FERC nominees were questioned whether more natural gas would be needed to support growing U.S. demand. Last year, natural gas-fired generation supplied 45% of U.S. electricity, according to FERC’s 2023 State of the Markets report.
See said, “Yes…I also take seriously the concerns of reliability and the important role that natural gas plays.” Rosner said he “would be strongly committed to the infrastructure that is needed to power our country.” And Chang said, “Even in New England, we will need as much natural gas generation as we have today…to facilitate a reliable grid.”
Chang, who has worked on energy transition planning for New England, said, “I personally experienced what it's like to go through winters in New England…with nail-biting experiences to make sure that we had not only reliable service, but affordable service.” Winter “is particularly the time when New England is more like Germany than it is like Pennsylvania in its cost and availability of natural gas.”
In February 2023, a cold snap and pipeline constraints led to natural gas prices reaching $66.37/MMBtu at Algonquin Citygate, according to FERC. However, prices averaged lower last year than in 2022.
“If I had my magic wand I would love to have more gas infrastructure and gas supply to New England, but the issues are complicated in New England, and I look forward to an opportunity to work on that,” Chang said.
Factoring GHGs?
One issue in FERC’s determination for pipeline approvals has been whether the Commission should assess and include in decisions impacts from greenhouse gas (GHG) emissions.
The nominees all agreed that FERC should not regulate environmental issues beyond what is required by the National Environmental Policy Act (NEPA).
Rosner said he would approach all cases through the lens of the Natural Gas Act (NGA). “The texts of the Supreme Court has said that the purpose of the Natural Gas Act is to ensure the orderly development of plentiful supplies of natural gas at reasonable prices. And so that's where I would start an end in my analysis of that issue.”
Chang said she did not think the NGA specified GHGs as a criteria for “denying any pipeline projects.”
Some environmental duties were granted by Congress in NEPA, See said. “But when it comes to the primary purpose in the Federal Power Act, the Natural Gas Act, it’s very important FERC takes its role as an economic regulator, and follows all aspects of the law that apply to it.”
Analysts with ClearView Energy Partners LLC in a note indicated Manchin’s “apparent support” for the nominees could be a positive sign. Senate Majority Leader Chuck Schumer (D-NY) could schedule a confirmation vote in the coming weeks, and that could allow FERC to once again have five members in May. Schumer should “have the sufficient simple majority in the Democrat caucus to confirm all three,” the analysts said.
If confirmed by the Senate, Rosner’s term would end on June 30, 2027. See’s term would expire at the end of June 2028, with Chang serving until the end of June 2029.
