US Senate unanimously confirms Biden nominee Phillips to fill fifth slot at FERC

The US Senate Nov. 16 confirmed Willie Phillips to be the fifth commissioner at the Federal Energy Regulatory Commission, giving Democrats a 3-2 majority at the key regulator for the first time under the Biden administration.

The full Senate approved his confirmation by voice vote, following his approval in the Senate Energy and Natural Resources Committee Nov. 2, with no sign of opposition emerging on the panel.

The recent 2-2 split at FERC has complicated the path for natural gas projects, as commissioners have been divided over Chairman Richard Glick's and Democratic Commissioner Allison Clements' stance that FERC must do more to assess climate impacts of projects after several appeals court rulings.

Phillips' confirmation could strengthen the hand of Democrats as FERC seeks to update its 1999 natural gas pipeline certificate policy. Teed up in a long-pending proceeding on that policy are questions pertaining to how to assess climate impacts, how to determine whether projects are needed, and how to weigh environmental justice impacts in project siting.

Project sponsors have been seeking greater clarity about what will be required to gain FERC approval for future development or projects connecting gas supplies to demand centers.

Potential for added clarity

Center for Liquefied Natural Gas Executive Director Charlie Riedl, in a statement Nov. 17, said that by bringing the commission to a full quorum, the confirmation provides "greater certainty for buyers and sellers of LNG and project developers."

On the power side, Phillips' confirmation could also break 2-2 deadlocks at FERC that have recently resulted in a contested PJM Interconnection capacity market overhaul and the proposed Southeast Energy Exchange Market becoming effective by operation of law. The Democrat's vote could also help Glick advance several other key proceedings dealing with electric transmission buildout.

"By function of math, simply having a fifth commissioner will break some of those ties," said former FERC Commissioner Tony Clark, in an interview Nov. 17. But he noted that adding a new commissioner can change the dynamics in a host of ways that do not necessarily mean there will be a raft of 3-2 votes. Having someone well-regarded in the regulatory community and who has existing relationships on the commission could help FERC get to more unanimity than some are expecting, he said.

Phillips enters at a time when core issues keep resurfacing on pricing in the wholesale power markets, integrity of the markets, and how to incorporate state public policy choices, Clark said. "Having a full slate of commissioners might bring some clarity to those issues," he added.

Phillips brings to FERC deep experience in electric sector regulation. Aside from his work as a state regulator and leadership roles in state associations, he also worked for the North American Electric Reliability Corp. and as a private sector regulatory attorney. He would serve a term at FERC expiring June 30, 2026.

Senators welcome 'balance'

Senate Energy and Natural Resources Chairman Joe Manchin, Democrat-West Virginia, in a statement Nov. 16, said Phillips understands the need to balance affordability and reliability and will bring that outlook to the commission.

"[H]is unanimous confirmation, at a time when the Senate is uniquely divided, is evidence that he is supremely qualified and the right person to fully seat FERC," Manchin said.

During his confirmation hearing Oct. 19, Phillips emphasized a need for balance, likening bulk power system operations to a three-legged stool, and stressing the need to weigh affordability and reliability alongside sustainability.

His confirmation was welcomed by some clean energy advocates.

"Commissioner Phillips' work to deliver the benefits of clean energy to consumers in the District of Columbia makes him well-positioned to understand the value that open, competitive, and non-discriminatory markets have for scaling clean energy and reducing consumer costs," said Jeff Dennis, managing director and general counsel at Advanced Energy Economy.

Some environmental groups stressed a need for Phillips to help alter FERC's approach to gas project permitting.

"Commissioner Phillips must push the agency to address climate and environmental justice impacts of fracked gas pipelines and export terminals and accelerate the transition to clean affordable energy," said Kelly Sheehan, Sierra Club senior director of energy campaigns, in a statement Nov. 17.

Food & Water Watch's policy director, Mitch Jones, said his group would be keeping tabs on Phillips' actions from day one, contending he has "spent his career working on the side of the oil and gas industry and electric utility giants."