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Cato Daily Podcast

FERC's Quorum Problem and US Energy

Feb 23, 2024
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.
08:11

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Quick takeaways

  • 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.

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