In an announcement that took many by surprise, Commissioner Robert Powelson on Thursday made public his plan to depart the Federal Energy Regulatory Commission at the end of August, just one year after his confirmation. Powelson will assume the role of President and CEO of the National Association of Water Companies. In an interview with Politico, Powelson made clear there was no subplot on his departure, stating that the new position is a dream job and will allow him to avoid the commute between his home in Philadelphia and D.C.
Until a replacement commissioner is confirmed and sworn in, Powelson’s departure will result in a Commission with two Democrats and two Republicans, heightening the risk that there may not be a majority for some very important policy issues currently under review, including the pending reviews of: natural gas certification processes; bulk power system grid resiliency matters (perhaps including an assessment of the impact of coal and nuclear generation closures may have on resiliency or national security); PURPA and Qualified Facility regulations; wholesale market reform initiatives; and, implementing the President’s policy of lessening the regulatory burden on industry.
The review of natural gas pipeline projects highlights the issue. Of particular note in recent natural gas pipeline certification proceedings, both Commissioner Cheryl LaFleur and Commissioner Richard Glick have argued in their dissents that the appropriate scope of the environmental review must include an analysis of the impact of the proposed pipelines on climate change. The three Republican members have so far been able to prevail. However, with Commissioner Powelson departing, the Republicans will not have a majority for a period of time, resulting in a 2-2 vote and a failure to secure a majority to approve the application. Likely, the vote on the certification applications will be delayed until a full panel is confirmed.
Time will tell how long it will take for a replacement commissioner to be paneled and the ultimate impact on the regulated industries.
