Billions of dollars in shovel-ready projects are currently ‘stranded on the sidelines’
If it entails moving virtually any form of energy across a state line, the Federal Energy Regulatory Commission (FERC) plays a lead role.
FERC oversees the interstate transmission of natural gas, oil and electricity. FERC’s mandate also involves approving new natural gas pipelines and transmission lines. But with three of five commissioner seats empty since early February, and no quorum, FERC has been unable to make major decisions on essential American infrastructure projects for months.
On May 11, the White House sent two FERC nominations to the Senate:
- Neil Chatterjee, a senior energy advisor to Senate Majority Leader Mitch McConnell (R-KY); and
- Robert Powelson, the president of the National Association of Regulatory Utility Commissioners, and a commissioner on the Pennsylvania Public Utilities Commission.
The Interstate Natural Gas Association of America (INGAA) estimates that at least “$15 billion of shovel-ready, natural gas pipeline projects are stranded on the sidelines because FERC’s lack of quorum prevents the commission from acting on major energy projects.”
Enbridge, the largest energy infrastructure company in North America, is currently executing on an industry-leading growth program, with US$20 billion in secured projects and another US$35 billion in development.
“These privately funded projects will help deliver not only the energy our customers need, but also well-paying jobs, local and regional procurement spending, tax revenue across our host communities, and economic growth,” says Bill Yardley, Enbridge’s President of Gas Transmission and Midstream.
“Like the many Americans who’ll benefit from these needed infrastructure projects, we are hoping for a FERC quorum to be re-established as soon as possible.”
What They’re Saying
Here’s what consumer groups, industry associations and government officials have to say about the FERC quorum:
“From strained competitive markets to crucial energy infrastructure, FERC faces many challenges, and these nominees will help move America toward a more secure energy future.”
—Christopher Guith, Senior VP, U.S. Chamber’s Institute for 21st Century Energy
“It is essential for FERC to regain its quorum, particularly in light of the President’s twin objectives of building infrastructure and stimulating gas production and use.”
—Scott Segal, director, Electric Reliability Coordinating Council
“To build this infrastructure, we need a functioning FERC to act on pending natural gas infrastructure projects of national importance. The nomination of these individuals to serve at FERC will mark a step toward improving the nation’s energy infrastructure.”
—Don Santa, CEO, Interstate Natural Gas Association of America
“Having a quorum will allow FERC to continue its important work for the natural gas industry—including timely decisions on pending and future interstate natural gas infrastructure project certificates.”
—Dave McCurdy, President and CEO, American Gas Association
“I welcome the President’s announcement of two well-qualified nominees and look forward to restoring FERC’s quorum as soon as possible. We will . . . seek to confirm them as expeditiously as possible.”
—U.S. Sen. Lisa Murkowski (R-AK), Chairman, U.S. Senate Energy and Natural Resources Committee
“I would like to congratulate Neil Chatterjee and Robert Powelson on their nominations . . . I look forward to working with our colleagues at FERC to assist in their smooth transition to the agency upon confirmation.”
—FERC commissioner Colette Honorable
