[UPDATED Nov. 10, 2020 8:45 a.m.]

As his path to re-election narrowed late Thursday, President Trump demoted FERC Chairman Neil Chatterjee, replacing him with fellow Republican James Danly.

Trump’s move — which came as his electoral leads in Georgia and Pennsylvania appeared at risk of evaporating as vote counting continued — could be just the first of a series of personnel changes the president has contemplated, according to The Washington Post, which reported that he was considering sacking infectious disease expert Anthony Fauci, FBI Director Christopher Wray and Defense Secretary Mark T. Esper. (On Monday, Trump announced via Twitter that he had fired Esper.)

Chatterjee likely became a target after joining with Democratic Commissioner Richard Glick on Oct. 15 in supporting a proposed policy statement inviting states to introduce carbon pricing in wholesale electricity markets to address climate change. (See FERC: Send Us Your Carbon Pricing Plans.) Trump’s action came a day after the president, who had promised to restore the coal industry, formally withdrew the U.S. from the Paris Agreement on climate change.

Chatterjee’s willingness to address climate policies got the attention of the Washington Examiner, which published an article describing him, “a Kentucky Republican, [who] used to be known as [Senate Majority Leader] Mitch McConnell’s coal guy, eager to advance President Trump’s pro-fossil fuel agenda” as “staking a claim as one of the government’s leading problem solvers on addressing climate change.”

The author of the Examiner article, Joshua Siegel, tweeted that the policy statement and Order 2222 — which directed RTOs and ISOs to make their markets accessible to distributed energy resource aggregations — “was a clear driver in this decision by the White House.”

Danly dissented on both issues.

In an interview with RTO Insider, Chatterjee said he was informed of the decision around 6 p.m. Thursday. He said was given no reason for the move and could only speculate that it had to do with his “promoting market-based solutions to climate change,” citing the commission’s policy statement on carbon pricing.

“Perhaps folks [at the White House] weren’t in favor of that, and I think that validates my independence,” he said.

Although he said he was given no earlier indication that the move was coming, Chatterjee said he was not surprised. “I knew I was taking a risk when I was pursued these policies.”

Chatterjee also confirmed to E&E News that he had refused to follow Trump’s executive order in September prohibiting diversity training at federal agencies.

FERC announced Danly’s promotion in a statement at 9:05 p.m. Thursday night that provided no reason as to why Trump made the decision to switch chairs. Danly only became a commissioner in March after serving as general counsel since 2017.

Glick tweeted: “Although we haven’t always agreed, I know that Chairman Chatterjee arrived at his views honestly and independently. And I appreciate his willingness to ignore party affiliation and work with me on several key initiatives that will prove beneficial to this nation.”

Chatterjee served as chair August to December 2017 while Trump’s pick for chair, Kevin McIntyre, went through the Senate confirmation process. The president made Chatterjee chair again in October 2018 when McIntyre resigned from the position, ailing with brain cancer that would claim his life. (See McIntyre Steps Down; Chatterjee Named FERC Chair.)

In the statement and on Twitter, Chatterjee congratulated Danly on the promotion and said he was proud of his time as chair. “It’s been the honor of a lifetime to serve as the chairman of FERC alongside my colleagues and staff, who represent some of the most talented and hardworking professionals in the U.S. government,” he said.

Chatterjee also indicated he would complete his term, which ends at the end of June 2021. “Our work — my work — at the commission isn’t over. I look forward to working with my friend, Chairman Danly, as well as the next administration to continue to carry out our important mission.”

He posted a more emotional statement on his personal Facebook page early Saturday morning, saying that he didn’t “give a f@&! what people think of me. I will be judged by my grandchildren. And as of this moment I am confident that I will be able to look them in the eyes when they ask me where I stood on the most significant issues of this time and be proud.”

Though he told RTO Insider he was “at peace” with the move and sounded upbeat, he admitted on Facebook that “it’s been a difficult few days. I have dedicated almost the entirety of my professional career to public service. I am a deeply flawed person. I know for certain I have not always made the right decision. But I can honestly say that I tried to get it right to the best of my limited abilities.”

“It has been my utmost pleasure to have served under Neil Chatterjee, both as general counsel and alongside him as commissioner,” Danly said via FERC’s statement. “I have learned a tremendous amount from his expertise and insight, and I am proud of the work we’ve been able to accomplish under his thoughtful watch.

“Neil has truly left his mark on FERC and the energy sector by brokering a significant agreement allowing us to move forward with liquefied natural gas terminals, which helped secure our American energy independence,” he added. “He also made a lasting impact through his commitment to protecting competitive markets, modernizing our policies under [the Public Utility Regulatory Policies Act], expediting the approvals of much needed critical energy infrastructure and so much more. I thank Neil for his leadership, and I look forward to continuing to work with him in this new role.”

Up in the Air

The president cannot fire members of FERC without cause, but he can name any sitting member that is also a member of his party as the chair. Given former Vice President Joe Biden’s election as president Saturday, Danly’s time as chair will be limited to little more than two months.

Biden and Senate Democrats will also have control over three of FERC’s five commission seats once Chatterjee’s term expires. Though Biden will ultimately be able to nominate at least four commissioners during his term, only three of them may be Democrats.

In July, Trump nominated Democrat Allison Clements, energy policy adviser for the Energy Foundation, and Republican Mark Christie, chair of the Virginia State Corporation Commission, to fill FERC’s two current vacancies. (See FERC Nominees Bob and Weave Through Senate Hearing.)

ClearView Energy Partners noted that “it is customary but not required that a chairman appointed by an outgoing administration to tender his resignation to allow a new president to fill the seat and change the majority.” It is unclear at this point whether the Senate will vote on Clements’ and Christie’s nominations during Trump’s lame duck period. If it doesn’t, Biden will be able to nominate two Democrats to fill the vacancies.

While Chatterjee has said he intends to complete his term, Danly’s intentions are unknown. His term ends June 30, 2023.

“We don’t have anything on that right now,” Mercedes Kearney, Danly’s executive coordinator, said Friday when asked whether Danly would give up his seat if Biden wins. “So much is going on right now.”