US FERC nominees pressed on independence, data centers at Senate hearing

President Donald Trump's nominees to the Federal Energy Regulatory Commission were pressed by senators on the agency's independence and whether they would treat fossil fuel and renewable resources equally.

The Senate Energy and Natural Resources Committee held a hearing Sept. 4 to consider Laura Swett and David LaCerte to fill two open spots at FERC. When asked about Trump administration efforts to exert more influence over independent agencies, the nominees told the committee they would adhere to existing law.

"My position is that we'll follow the law, and if the Supreme Court, the highest court in the land, changes that law, then we'll follow that too," LaCerte told the committee.

Swett is an energy attorney at Vinson and Elkins and previously worked in FERC's office of enforcement and for former commissioner Bernard McNamee and chair Kevin McIntyre. Nominated for a term expiring in June 2030, Swett is seen as likely to be named chair of the commission.

LaCerte served as the White House liaison to the US Office of Personnel Management and as a special counsel at Baker Botts, which has an energy law practice. LaCerte's main energy work at the firm was focused on the Clean Air Act, safety and the environment, he told senators.

Both nominees emphasized electric grid reliability and ensuring adequate and affordable energy supplies as priorities.

Independence

Sen. Martin Heinrich of New Mexico, the committee's ranking Democrat, said a key role of the hearing would be to assess the nominees' commitment to FERC's independence.

"Destroying the independence of the Federal Energy Regulatory Commission would do irreparable damage to public confidence in the commission's decision-making, to regulatory stability and to our energy security," Heinrich said.

The Supreme Court signaled in May that it was open to overturning Humphrey's Executor v. United States, a 90-year precedent that upholds the constitutionality of removal protections for members of independent agencies. If fully overturned, the president would be able to fire FERC commissioners at-will and play a more direct role in policymaking.

Swett said that, regardless of the Supreme Court's eventual ruling on the independence issue, she was committed to following legal procedures if confirmed.

"I will follow the law and honor the law in everything that I do, and consider the merits of every single issue, the law and the facts before me, irrespective of where the litigation comes out and the length of my term," Swett said.

LaCerte told senators it was important to nominate and confirm people to FERC that "honor that independence." But LaCerte also said he "personally would welcome a modification of Humphrey's Executor."

Pressed by Sen. Alex Padilla, Democrat from California, to clarify his stance, LaCerte said, "I'll do the utmost of my ability under the law to maintain the independence of FERC — 100%."

Neutral treatment of power sources

The nominees were also questioned multiple times on whether they would be agnostic to the type of power generation when making decisions about interconnection, permitting and other matters at FERC.

"The Federal Power Act requires that a commissioner be neutral in those decisions, and I commit to following the law," LaCerte said.

In response to questioning from Heinrich on the benefits of solar and wind power, Swett said the commission "should do whatever we can to ensure that the lights are on."

Data centers

Both nominees stressed the importance of building sufficient generation to support the deployment of artificial intelligence and data centers. Meeting data center demand is critical to national security and would be one of Swett's top priorities if confirmed, she said.

"We must preserve national and economic security by doing everything within FERC power to buttress the AI revolution and facilitate the connection of large load and data centers so that data centers are not forced to build in other countries, making every American vulnerable to foreign adversaries," Swett said.

S&P Global Market Intelligence 451 Research forecast earlier this year that US utility power demand from data centers could more than double by 2029.

LaCerte also said that the growth of data centers and AI would require "diligent planning" from both state regulatory bodies and FERC.

Meeting demand from data centers and AI is expected to be a top priority for the commission if LaCerte and Swett are confirmed. Especially after FERC rejected Talen Energy 's amended interconnection agreement with PPL to provide colocated power to an Amazon data center campus in November 2024.

Many FERC observers expect the commission to issue guidelines for colocation agreements for data centers and other large loads if the new commissioners are confirmed.

"This is a challenge that must be met and cannot be delayed," LaCerte said.

Project permitting

Sen. John Barrasso, Republican-Wyoming, questioned the nominees on how FERC's energy project reviews will be impacted by a May Supreme Court ruling (Seven County Infrastructure Coalition v. Eagle County) that found the National Environmental Policy Act (NEPA) had been transformed from a modest procedural requirement into a tool used to block projects.

"I see Seven County as significantly narrowing the scope of environmental review required under NEPA," Swett replied. Now that it is clearer what FERC is required to do, commissioners should be able to "take a hard look at FERC's processes to see what efficiencies are available."

FERC staffing levels

Another matter drawing senators' attention was the Trump administration's call for large-scale reductions in federal agency staffing, which FERC has evaded thus far.

Both nominees committed to go to bat for maintaining staffing levels in response to questioning.

"As someone who worked alongside FERC staff myself, I know how hard they work, how mission-driven they are, how technically strong and legally strong they are," Swett said.

LaCerte did not foresee the administration asking FERC to implement a large-scale reduction. "The mission of FERC is directly in line with the president's management agenda," he said.

ClearView Energy Partners, in a note, called the hearing harmonious and uncontroversial. The research firm said it anticipated the committee could approve nominees with bipartisan support later this month, although debate over appropriations could delay a Senate floor vote.