The Senate Energy and Natural Resources Committee on Sept. 4 held a hearing to consider the nominations of Laura Swett and David LaCerte to be Federal Energy Regulatory Commission commissioners.
Key themes throughout the hearing included, among other things, questions about maintaining the independence of FERC, FERC’s generation-agnostic approach to regulation, and the growing demand for and rising cost of electricity.
Both nominees received questions about maintaining the independence of FERC and the FERC commissioners, particularly considering the challenge and potential narrowing by the Supreme Court of Humphrey's Executor v. United States, the 1935 decision that limits the President’s power to remove officials from independent regulatory agencies, like FERC.
While LaCerte said he would “personally welcome” a change to the Humphrey decision, both LaCerte and Swett emphasized their intention to follow the law, with LaCerte highlighting his previous experience at an independent agency and Swett noting that Congress created FERC to be independent and outside the jurisdiction of the Department of Energy.
Committee Democrats closely scrutinized LaCerte’s qualifications to serve as a FERC Commissioner. LaCerte emphasized that he has experience working at an independent agency and an energy law firm, but he also noted that he would bring a “fresh” perspective to the role if he is confirmed.
Several senators asked the nominees if they intend to maintain FERC’s existing generation-agnostic approach to regulation, with both emphasizing their intention to follow the law and to focus on FERC’s mission to ensure rates are just and reasonable.
Senators on both sides of the aisle highlighted the rapidly growing demand for electricity, particularly from data centers and AI. Several also noted recent increases in household electricity bills.
Swett agreed that the country needs more generation and more reliable generation, stating that she would do everything within the law to ensure a plentiful supply of energy at just and reasonable rates.
LaCerte said when decisions come before FERC, he would ask, “Does this make our grid more reliable? Does it make it more affordable?” If the answers are no, then it is necessary to ask why these decisions are being considered.
Both nominees agreed that more transmission is necessary for meeting demand growth and that interstate transmission, when properly planned and executed, can increase reliability.
Swett answered a question about grid-enhancing technologies (GETs), stating that she understands the benefits and agrees that we should maximize the existing grid. She noted that transmission incentives, including those for GETs, have been a challenging issue for FERC for many years, and if confirmed, she will thoroughly examine this issue.
In a question about landowners’ rights, Swett noted that FERC has very limited siting authority, only in DOE-designated corridors, and that she believes landowner rights are very important.
LaCerte said that, in general, it needs to be easier to do business with the federal government to attract more investors to the table to invest in our infrastructure, including transmission.
Both nominees expressed support for hydropower and agreed that the existing relicensing process could be improved.
