Amy Andryszak is president & CEO of the Interstate Natural Gas Association of America.
Amidst global unrest, geopolitical tensions and rapidly growing energy demand, reliability and affordability remain paramount to the United States’ energy, economic and environmental future.
The Federal Energy Regulatory Commission is at the center of it all, and the confirmation hearing tomorrow in the Senate Energy & Natural Resources Committee to consider three nominees to the commission is essential to shaping an energy future that prioritizes security, dependability and lower costs to consumers.
Widely regarded as one of the most reliable, dispatchable fuel sources, natural gas accounts for roughly 43% of U.S. power generation, ensuring our lights turn on and homes are warm.
With increasing demand — one recent study projected that global natural gas demand will increase 34% by 2050 — reliance on American energy output will continue to rise. But meeting that demand will require an efficient regulatory process.
Congress created FERC as an independent federal agency in 1977 and tasked it with regulating America’s interstate natural gas systems. FERC reviews and permits new natural gas infrastructure and expansions. Those projects, and the jobs spurred by those investments, depend on a clear and consistent regulatory process at the commission. In addition, consumers benefit from FERC’s review and authority over the rates and services for interstate energy infrastructure.
Which is why we need a FERC that works — a FERC with enough commissioners to make lasting decisions. If the United States is to realize the benefits of its abundant energy supplies, the country needs a quorum of FERC commissioners who are committed to evaluating projects on their merits — in accordance with federal law and established Commission precedent — and to the timely deployment of critical energy projects.
Why does this all matter, now?
By law, FERC needs a minimum of three commissioners to function. Currently, the commission only has three commissioners with one set to leave at the end of her term in June. If FERC loses quorum, vital natural gas projects may be delayed, stalling economic growth and hindering U.S. producers’ ability to meet energy demands.
Representatives across the energy value chain have outlined the clear need for the commission to permit new interstate pipelines. Over the past several years, regions across the U.S. have experienced increased power outages due to inclement weather events. Both the electric grid and the natural gas pipeline system have experienced supply shortages in these extreme weather events, underscoring the need for more — not less — natural gas infrastructure to ensure adequate natural gas supplies reach the regions in need.
The role of FERC in making certain that energy is secure, reliable and affordable through its oversight of certain energy infrastructure projects, including pipelines, cannot be overstated. Achieving these goals necessitates the commission’s continued commitment to advancing projects that would modernize and expand America’s energy infrastructure and ensure the orderly development of plentiful supplies of natural gas at reasonable prices.
The expansion of U.S. energy infrastructure is directly related to economic opportunities and job creation across the nation. Energy infrastructure projects create jobs — which translates into increased revenue for local economies. By approving natural gas transmission and storage projects, FERC is not only adhering to its regulatory obligations, but it is also bolstering our economy.
We all rely on stable, reliable energy to power our everyday lives, and so Congress must act to ensure FERC can fulfill its mission of assisting consumers in obtaining reliable, safe, secure and economically efficient energy services at a reasonable cost. Tomorrow’s confirmation hearing is critical. Failure to maintain FERC’s quorum jeopardizes the commission’s operational capabilities, which in turn undermines American national and energy security.
Domestic producers are ready and able to scale production to meet increased demand, and pipeline developers are prepared to put new pipe in the ground to transport that gas from where it is produced to where it is consumed. But this is only possible with a fully functioning FERC committed to efficient oversight and the predictable, timely permitting of the additional energy infrastructure required to meet the United States’ growing energy demand.
Simply put: the confirmation hearing tomorrow in the Senate Energy & Natural Resources Committee for three FERC commissioner nominees is essential to shaping an energy future that prioritizes a secure, reliable and sustainable energy system.
