15 Dec, 2022

With no 'path forward' for renomination, Glick plans departure from FERC

Federal Energy Regulatory Commission Chairman Richard Glick said Dec. 15 that he plans to leave the agency at the end of the year or in early 2023 when Congress adjourns, adding that he does not wish to be renominated in 2023.

At the conclusion of the Dec. 15 monthly open FERC meeting, Glick said it became clear there is "not a path forward anymore for the president's nomination of me to serve a second term."

Following Glick's announcement, a White House spokesperson said the administration did not have any information to share. "We continue to hope our FERC nomination can move this year," a White House official said. "When we have more information to share, we will."

Glick's departure will leave FERC with a 2-2 partisan split in early 2023, complicating action on thorny issues pending before the commission, such as how to speed the development of electric transmission infrastructure and consider climate change when permitting natural gas projects.

But the outgoing chairman pushed back on the notion that FERC would be deadlocked, even though he told reporters that a full, five-member commission is optimal.

"I don't expect the commission is going to come to a standstill," Glick told reporters. The Senate could also pair Glick's replacement with a nominee to fill Commissioner James Danly's seat since the Republican member's term expires at the end of June, Glick said.

Glick could be renominated in the 118th Congress, but the chairman said he notified the White House that he is not interested in returning to FERC next year.

"Even under the best of circumstances, that would take a number of months," Glick said, suggesting he wanted to avoid the impact on his family and himself. He also acknowledged inherent uncertainty in making another try, given that Sen. Joe Manchin, D-W.Va., is still expected to chair the Senate Committee on Energy and Natural Resources.

Manchin stalled in holding a confirmation hearing for Glick this fall, stating that he "was not comfortable" doing so.

"I don't know why things might be different next year versus this year," said Glick, who indicated he has not yet lined up future employment.

On the natural gas side of FERC's work, Glick's departure sparked debate over the risk of 2-2 votes holding up project authorizations, although FERC has mostly voted 5-0 to advance gas project orders for much of 2022. Glick also departs while two draft policies remain in limbo that would have revised FERC's approach to reviewing gas projects.

Glick told reporters that the imperative for regulatory change, including increased climate considerations, is driven by the courts and would remain a risk to the durability of FERC's orders until the commission alters its approach. Republicans on the panel have argued FERC risked stretching beyond its statutory authority, particularly in light of a recent U.S. Supreme Court ruling in West Virginia v. EPA and the establishment of a new "major questions doctrine."

Glick's exit will require "probably more compromise than what would otherwise be needed" while the commission is split between two Republicans and two Democrats, said Larry Gasteiger, executive director of transmission advocacy group WIRES.

FERC has several major electric transmission rulemakings underway. Some of the most pivotal ones were launched by Glick, including an overhaul to planning and cost allocation for new transmission projects and a proposal to streamline the interconnection process for new power generators. FERC is also weighing changes to how it determines incentives for utilities to join or stay in commission-jurisdictional wholesale power markets.

Although FERC faces a period of leadership uncertainty, "I think there's a pretty broad recognition within the commission on the importance of transmission," Gasteiger said. Whoever ends up leading the commission next year "will continue to carry that forward," he added.

Clean energy advocates praised Glick's tenure at FERC and warned that a divided four-member commission could set back climate progress.

"Chairman Glick's departure will create a 2-2 split at FERC, leaving the commission divided and potentially stalling progress on critical transmission policy that is key to realizing the immense potential for investment and renewable deployment under the Inflation Reduction Act," the American Council on Renewable Energy's President and CEO Gregory Wetstone said in an emailed statement. "We respectfully urge the President to quickly nominate a worthy successor and call on the Senate for rapid confirmation to restore a full complement of five FERC commissioners."

S&P Global Commodity Insights reporter Maya Weber produces content for distribution on Platts Dimensions Pro. S&P Global Commodity Insights is owned by S&P Global Inc.

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