FEDERAL ENERGY REGULATORY COMMISSION IN SPOTLIGHT: WILL AGENCY REMAIN INDEPENDENT DURING TRUMP'S SECOND TERM?

The Federal Energy Regulatory Commission (FERC) is poised for potential changes, with two Republican nominees, Laura Swett and David LaCerte, waiting for Senate approval to fill empty seats at the independent agency. If confirmed, they could lead to significant shifts for FERC.

President Donald Trump nominated Swett and LaCerte in June 2025, and as of the latest information, their confirmations are still pending in the Senate. The nominations come amidst unprecedented moves by Trump to assert control over independent agencies like FERC.

If Swett and LaCerte take up their positions, FERC could favor dispatchable generation in interconnection queues, potentially making prioritization of dispatchable resources permanent. This could have a significant impact on the energy landscape, potentially benefiting coal, gas, and nuclear power plants.

Moreover, FERC could potentially issue Federal Power Act section 206 orders to change markets that don't adequately provide value to these power plants. This move could help keep coal- and gas-fired power plants from retiring, aligning with the Trump administration's goal in this regard.

However, FERC's independence is being tested due to potential oversight by the Office of Information and Regulatory Affairs and the Office of Management and Budget. This oversight, along with a hiring freeze and staff losses since Trump was elected, has put pressure on the agency.

FERC's headcount is expected to fall by 9% by the end of its fiscal year, and the commission is under a reorganization plan required by the Office of Personnel Management and OMB. The reorganization includes changes to FERC's Office of Policy and Innovation.

Recently, FERC approved a petition for a waiver sought by the Interstate Natural Gas Association of America without questioning the validity of Trump's "energy emergency". This move has raised concerns about FERC's independence, with some arguing that the commission should maintain its traditional role as a neutral arbiter in energy matters.

Despite these challenges, FERC Chairman David Rosner, appointed by Trump, has stated that the commission is working independently. However, there seems to be a consensus agreement at FERC that the energy system is in crisis, that renewables are contributing to that crisis, and that they need to take extraordinary steps to promote primarily natural gas generation and pipelines.

As the Senate considers the nominations of Swett and LaCerte, the future direction of FERC remains uncertain. The outcome of their confirmations could have far-reaching implications for the energy sector and the nation's energy policy.

FEDERAL ENERGY REGULATORY COMMISSION IN SPOTLIGHT: WILL AGENCY REMAIN INDEPENDENT DURING TRUMP'S SECOND TERM?