Washington D.C. — House Energy and Commerce Subcommittee on Energy, Climate, and Grid Security Chair Jeff Duncan (R-SC) delivered opening remarks at today’s hearing titled “The Fiscal Year 2025 Federal Energy Regulatory Commission Budget.”
“Thank you to the five commissioners for appearing before the Energy, Climate, and Grid Security Subcommittee to discuss the recent activities of the Federal Energy Regulatory Commission.
“Chairman Phillips and Commissioner Christie, it is good to have you back. Commissioners Rosner, See, and Chang, congratulations on your recent confirmations.
“Chairman Phillips, I’d like to take a moment to commend you for your efforts to clear some of the backlog of major natural gas pipeline projects, as well as your recent vote in support of U.S. LNG exports.”
Duncan emphasized the importance of returning FERC to its core mission. “America is blessed with significant natural resources, and FERC plays a key role in dictating the trajectory of our energy economy. Despite our abundance of fossil fuel, nuclear, and renewable energy resources, consumers have been hammered by soaring energy costs, particularly electricity."
He cited recent inflation data indicating that electricity price inflation exceeds the Consumer Price Index by 47 percent and noted that electricity rates have increased by approximately 20 percent since President Biden took office. “FERC’s mission is to '[a]ssist consumers in obtaining reliable, safe, secure, and economically efficient energy services at a reasonable cost through appropriate regulatory and market means, and collaborative efforts.’ Despite positive steps forward on natural gas pipelines and LNG facilities, we are concerned the Commission is failing to adhere to this mission in other aspects.”
Duncan expressed concerns about grid reliability. “No portion of FERC’s mission lends itself to being an environmental regulator. Yet we are concerned the Commission has strayed from its responsibility as an economic regulator to an entity focused on assisting the build-out of so-called 'green-energy' technologies.” He highlighted alarms from the North American Electric Reliability Corporation (NERC) regarding regions at risk of insufficient operating reserves during above-normal weather conditions.
Addressing FERC Order 1920 on regional transmission planning and cost allocation—which Energy and Commerce Republicans oppose—Duncan stated it would drive up costs and make the grid less reliable. He acknowledged differing opinions from Democratic colleagues but clarified that support for Order 1920 from 33 State Utility Commissioners represents only a small fraction of utility regulators nationwide.
“One of Republicans’ main concerns with Order 1920 is that it pursues a skewed 'categories of factors' approach to transmission planning,” Duncan said. He argued that prioritizing projects serving an environmental agenda would socialize costs across a broader rate base without necessarily reducing costs for ratepayers.
Duncan stressed that Republicans are not opposed to critical transmission projects needed for reliability but oppose actions raising consumer prices without benefits. He pointed out that transmission costs have tripled over the last decade according to PJM.
Finally, Duncan criticized EPA regulations affecting grid reliability. He listed several EPA actions he believes will increase utility costs and push reliable assets into early retirement. Addressing Chairman Phillips directly, Duncan said: “Chairman Phillips, publicly you have emphasized that you care deeply about affordability and reliability. I take you at your word and view this as an opportunity to have a candid discussion about how FERC’s actions are impacting these two essential goals.”
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