Federal Energy Regulation Takes a Turn for the Worse

For the past 4 years, consumers have had someone looking out for them at the Federal Energy Regulatory Commission.  FERC Commissioner Mark Christie, most recently Chair of the Commission, never forgot who he was working for.  He never forgot that regulation serves to protect the captive consumers of monopoly utilities.

​The American Bar Association defines regulation like this:

For all these regulatory purposes, the legal lodestar is the regulatory statute. Most regulatory statutes tell regulators to act “in the public interest.” This command implies a statutory judgment—that absent regulation’s constraints and inducements, private behavior will diverge from the public interest; that whether the market structure is monopolistic or competitive, universal, reliable, safe utility service at reasonable rates won’t happen by itself. Effective regulation therefore aims to align private behavior with the public interest.  Regulation defines standards for performance, then assigns consequences, positive and negative, for that performance. The common purpose of all regulation is performance.

It used to be that regulation was a specialized skill practiced by experienced regulators.  But all that seems to have been chucked aside in the past 20 years as politics invades the regulatory realm.  There should never be politics in regulation because politics are not necessarily in the public interest.  However, when you let politicians nominate and/or appoint regulators, you may just end up with more powerful politicians.  And sometimes, you end up with special interests in regulator seats, where they regulate in the interest of corporations or special interest ideology.  

And then there was Commissioner Christie, who always did the right thing, because it was the right thing to do.

One of the more memorable things is his famous PATH rant at the December 2023 Commission meeting.  Begin at minute 13:48 and watch for about 5 minutes until he's finished.

And then there was his recent dissent on Valley Link's request for financial incentives.

And then there was the time he wanted to open up an investigation of PJM's cost allocation for data center transmission lines.

Commissioner Christie has both surprised and delighted this long-time FERC watcher.  I can truthfully say that he is the BEST Commissioner FERC has had in the almost two decades I've been doing this.  I remember how much he terrified me the first time I encountered him in full poker face, sitting on a stage at an SCC public hearing for the PATH transmission project.  But that was a different time and a different me.

So, why this dirge?  

The White House on Monday said it was nominating Laura Swett, an energy attorney at Vinson & Elkins, to take the seat held by Federal Energy Regulatory Commission Chairman Mark Christie.

Christie’s term expires June 30, although he can remain in his seat through this Congressional session, which typically ends around the end of the year.

The move to replace Christie appears to have been a surprise. “I learned this evening from a media inquiry that Pres. Trump has appointed Laura Swett to replace me when my term expires,” he said on social media. “I congratulate Laura and wish her the best.”

Christie said he would remain at FERC for a few weeks after June 30 to help get key orders out.

Imagine that after a long career of service you find out you're fired when a reporter calls you for a quote?  He deserved much better than this (finally something I can agree with former FERC gadfly Neil Chatterjee about).

I hope Commissioner Christie deals with this the same unique way he's carried out his term at FERC.  Maybe instead of jumping right into private practice as some white shoe law firm's FERC whisperer, Christie might just retire.  I mean really retire.  Enjoy life.  Do all those things on his bucket list.

If not, I'm sure he'll do good wherever he goes next.

​So, what's next for FERC?  Laura Swett, who currently works for one of those white shoe law firms after a brief stint being an advisor at FERC.  That revolving door is spinning away.

It's kind of like being given a handful of poison berries instead of the M&M's you're used to eating.

Why did someone think it was a good idea to replace an experienced regulator who works in the public interest with a corporate attorney?  Is there anyone left at the Commission who knows that they are working for consumers?

FERC's Mission: Assist consumers in obtaining reliable, safe, secure, and economically efficient energy services at a reasonable cost through appropriate regulatory and market means, and collaborative efforts.