Heinrich Grills Trump’s FERC Nominees, Demanding They Maintain the Agency’s Independence and Fight to Lower Energy Costs for Consumers
WASHINGTON — During a U.S. Senate Energy and Natural Resources Committee hearing to consider Laura Swett and David LaCerte for the Federal Energy Regulatory Commission (FERC), U.S. Senator Martin Heinrich (D-N.M.), Ranking Member of the Committee, grilled the nominees on the agency’s independence and the importance of approving clean energy projects amidst the nation’s energy crisis.
On Maintaining FERC’s Independence
Heinrich began his questioning, urging the nominees to preserve FERC’s independence, “Earlier this year, President Trump signed an Executive Order asserting to give the White House greater control over independent agencies. As both of you know, FERC is a statutorily independent agency with a very clearly defined mandate. So, Ms. Swett, let me start with you. Can you tell me why maintaining FERC's independence is so critical?”
Swett answered, “Thank you for the question, Senator. Maintaining FERC’s independence is critical because that is exactly how Congress created the agency in the DOE Organization Act of 1978. Congress carved work out of DOE’s jurisdiction and explicitly provides that no FERC action is under review by anyone at DOE. And thus, as a lawyer who has been practicing FERC law for 15 years, I will always go back to the statute, and that is exactly what Congress directed, and I will not exceed the jurisdiction that Congress has given the agency if I am confirmed.”
Heinrich followed up, “Mr. LaCerte, same question.”
LaCerte answered, “Thank you, Senator, for the question. First, want to say I certainly am no stranger to the value of the assertion of independence and independent agencies. Having spent time at the CSB as Acting Managing Director, Acting General Counsel, Executive Council and Senior Advisor to the Chairman, I'm very familiar with navigating independent agencies, and I think that the independence of FERC is derived from its individual structure. Being commissioners, those five individuals have an independent voice. It's important that we nominate people and confirm people that that honor that independence and follow the law and apply the facts.”
On Powering Our Energy Grid with Clean Energy
Heinrich asked the nominees about the importance of ensuring we power our grid with more energy as Americans face an affordably energy crisis, “According to EIA Data, despite all that we've heard about affordability today, household electric bills are up 10% nationally since the beginning of this Administration in less than a year actually, double digit increase in electric bills. Former Republican FERC Chairman Chatterjee has said that we need every single available electron on the grid. Both of you have referenced the increased demand as a result of data centers and artificial intelligence. Would you agree that in the face of incredible rising demand, probably the greatest demand increase we've seen since the onset of air conditioning, that the grid right now requires more, not less, affordable and reliable energy, Ms. Swett?”
Swett answered, “Thank you for the question, Senator. I absolutely agree with you that the grid needs more generation and more reliable generation, and that we should do whatever we can to ensure that the lights are on. That said, under the Federal Power Act, Congress has explicitly stated that FERC’s mission is to ensure that there is no undue discrimination in the rates that are charged pursuant to its jurisdiction. And I agree with that, of course, for Congress' wisdom, and if I have the honor of being confirmed, I will honor that in every matter that I examine.”
Heinrich continued, “Let's take that one, one step deeper down, right now and for the next several years, actually, probably for at least the next four. 95% of the projects slated to come onto the grid to serve that demand are represented by wind, solar, and battery storage. We don't have, when you look at other generation sources, they're not already in the queue, things like combined cycle natural gas has a five-year waiting period for combined cycle natural gas turbines. Nuclear obviously has permitting challenges that oftentimes it takes 10 years to get nuclear generation built. What would the impact be if we, without replacement generation, took that 95% out of the pipeline of oncoming generation?”
Swett answered, “Thank you for the question, Senator. As a humble lawyer who is not an economist or a scientist, I'm not going to try to guess what the impact of taking that huge amount out of the queue would be. However, it is incredibly important that we thoughtfully ensure that as much generation is available as necessary to meet the unprecedented demand that our country is facing that will rise with every passing year. So, I commit to you that if I have the honor of being confirmed, then I will take a hard look at the matters before me, including interconnection, which I understand is under challenge in several federal courts at this time. So, I don't want to pre-judge anything, but if it comes before me and I am confirmed, then I will do everything I can to work with my colleagues to come to a solution.”
Heinrich countered, “I'm not an economist, but as the son of a lineman, I can tell you that if we took that generation out of the pipeline, we would see incredible increasing costs, and that's why I think everyone at this dais is incredibly concerned about that.”
On Generator Technology Being Considered for Permitting Decisions and LaCerte’s Professional History
Heinrich asked, “Mr. LaCerte, can you commit to maintaining FERC’s independence and commit that a generator's technology, which traditionally has not been considered when making interconnection decisions, permitting decisions that FERC will maintain its agnostic approach to generation?”
LaCerte responded, “Thank you for the question. Senator, as my potential colleague, Laura, has noted that under the law, we must remain neutral as it relates to such decisions, will always follow the law.”
Heinrich followed, “Mr. LaCerte, the baseline statute, I think that was the word you used. The baseline statute for FERC requires that the Chairman and members of the Commission shall be individuals who by demonstrated ability, background training, or experienced artists are specially qualified to assess fairly the needs and concerns of all interests affected by federal energy policy. Do I understand it that you have not represented clients before the FERC Correct?”
LaCerte answered, “Correct, I have not represented clients before FERC, Senator, and I believe that that is a strength of mine and not a negative. As Former Chairman Christie has noted in his swan song departing this Commission, that there's a real fear of regulatory capture of FERC. So I think a fresh perspective and a common-sense approach amongst one of the five members would be a welcome addition.”
Heinrich continued, “So you've never signed any pleading on a client's behalf on FERC on any matter?”
LaCerte answered, “Correct.”
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