House energy panel examines FERC's ties to EPA, project-licensing delays

The Federal Energy Regulatory Commission's (FERC) role in the electric-utility market was examined by the House Energy and Commerce Committee's Energy and Power Subcommittee, led by Chairman Ed Whitfield (R-KY), at a Tuesday hearing.

“There are valid concerns that FERC is allowing itself to become a helpless bystander as EPA seeks to dominate the electricity sector in ways that exacerbate the very problems FERC is supposed to protect consumers from,” Whitfield said. “America’s energy situation is better than it has been in decades, but nonetheless, there are challenges in the years ahead, and a critical role for FERC is dealing with them.”

The subcommittee held the hearing not only to discuss FERC’s role in the electric market, but also its function as it pertains to time lines for licensing LNG export facilities, non-federal hydropower projects and interstate gas pipelines that run through multiple states.

“There are problems with the timeliness of FERC approvals,” Energy and Commerce Committee Chairman Fred Upton (R-MI), chairman of the Energy and Commerce committee, said. “If left unaddressed, these delays may cost jobs, raise energy prices and compromise reliability. H.R. 8, which will be considered by the full House later this week, contains provisions to help expedite job-creating energy infrastructure projects. H.R. 8 also includes provisions that seek to strengthen our ability to prevent these risks and minimize the impact when they do occur.”

Some of these issues could be fixed by the North American Energy Security and Infrastructure Act.

“The commission continues to work to promote great efficiency, competition and transparency in the wholesale markets. … There is a need for more infrastructure, in terms of both gas facilities and electric transmission, and FERC plays a critical role in permitting and incentivizing the development of that infrastructure,” Norman Bay, chairman of the Federal Energy Regulatory Commission, said.





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