Exploring the challenges of FERC's quorum problem and its impact on crucial energy infrastructure decisions, including delays in approving gas pipelines and energy market tasks. Discussing the concerns about policy uncertainty and the complexities of appointments and confirmations in a new administration.
FERC's operations are jeopardized without a full quorum, hindering approval of crucial energy projects.
Delays in appointing FERC commissioners risk prolonged uncertainty in energy market decision-making.
Deep dives
The need for a Quorum at FERC and its implications
FERC requires at least three commissioners for a quorum to function, as decisions are made by votes. Without a full quorum, currently at three members with one commissioner not seeking a second term, the agency's operations are at risk due to impending loss of the majority. The absence of a quorum obstructs FERC's oversight responsibilities, including approving gas pipelines and ensuring the reliability of the power system. The situation poses a significant threat, potentially delaying approvals crucial for energy infrastructure and market functioning.
Historical context and challenges in resolving FERC's Quorum issue
FERC's current Quorum problem echoes a similar dilemma faced in 2017, highlighting historical challenges in swiftly resolving such issues. With the approaching expiration of a commissioner's term and slow nomination processes, the agency faces a recurring predicament. The delayed nomination and Senate confirmation procedures, exacerbated by other Senate priorities, could prolong the lack of a full Quorum. The parallel to past instances raises concerns about extended uncertainty in decision-making and policy implementation at FERC.
The Federal Energy Regulatory Commission has a role to play in managing the multistate movement of energy, but it's not clear the agency will be able to do the job in the near term. Cato’s Travis Fisher explains.