By Michael Brooks

WASHINGTON — It was little more than a year ago that FERC Chairman Neil Chatterjee gathered reporters at commission headquarters to assuage worries that Energy Secretary Rick Perry’s recent proposal to compensate coal and nuclear plants would destroy the markets. (See FERC Chair Praises Perry’s ‘Bold Leadership’ on NOPR.)

Much has happened since: Kevin McIntyre took over as chair; the commission unanimously rejected Perry’s proposal; and, last week, McIntyre relinquished the chair back to Chatterjee while staying on as a commissioner.

On Wednesday, Chatterjee once again met with reporters at FERC headquarters, where he struck a more muted, sober tone in explaining the commission’s work under his leadership while McIntyre struggles with what he called a “serious setback” in his battle with a brain tumor. (See McIntyre Steps Down; Chatterjee Named FERC Chair.)

“Kevin McIntyre is not just my colleague; he is my friend,” Chatterjee said. “I think it is important that he is focusing his energies on his health and his family. This situation is certainly not something I sought, and I most definitely do not relish it. But we have important work to do, and Kevin wants me to be a strong leader for him and for the agency that he cares so deeply about. And I am committed to working with my colleagues to live up to that expectation.”

Chatterjee said he would not discuss McIntyre’s health, saying he wanted to give him and his family privacy. But he spoke extensively about McIntyre’s leadership at the commission, and the influence McIntyre has had on him.

“I thought Chairman McIntyre was exemplary in his leadership,” he said. “I had time to meet with stakeholders, with staff in the building, with my colleagues and folks around the country to learn the importance of the commission’s processes, and culture, and mores, and traditions. And I think the individual who is … most responsible for my growth in this position is Kevin McIntyre. …

“He so emphasized the importance of the rule of the law … of adhering to [the record]; he could not be more strenuous in saying that politics could not be allowed to interfere with the work of the commission. And that has really helped me grow in my role as I made the transition from formerly partisan legislative aide to independent regulator. … I hope to lead in the same way. But I have big, big shoes to fill.”

Resilience and Avoiding Politicization

Chatterjee joined the commission as chair in August 2017, holding it until McIntyre joined later in December.

“The circumstances in which I stepped into the chairman role last time were not ideal,” he said Wednesday. But “quite frankly, they were a dream compared to this circumstance.”

Before being replaced by McIntyre, Chatterjee appeared supportive of Perry’s Notice of Proposed Rulemaking for FERC to order RTOs and ISOs to compensate the full operating costs of generators with 90 days of on-site fuel. The commission unanimously rejected the NOPR in January, opening its own docket to explore grid resilience (AD18-7). (See DOE NOPR Rejected, ‘Resilience’ Debate Turns to RTOs, States.)

On Wednesday, Chatterjee was asked whether he felt FERC was doing enough on the resilience issue. A former energy adviser to Senate Majority Leader Mitch McConnell (R-Ky.) and Kentucky native, he again brought up his partisan background.

“Again, this is where my growing into this role has been significant. I first came to the commission last fall, coming from a partisan legislative role in which I worked on behalf of my boss to fight against the retirement of coal-fired generation. Initially I was sympathetic to Secretary Perry’s proposal because of my concern for these rural communities, because of my concern about what the retirement of nuclear units might mean for mitigating carbon emissions.

“But as I evolved into the role, I realized that that is not part of our record. That doesn’t factor into the statutes that govern us. And I had to make a decision on the DOE NOPR based on the record that was before us. I have been thus far satisfied with the record that is being formed since we opened that new docket in January. And I’m going to review that docket and see what could the facts bear out. …

“So, it’s premature for me to say we’re doing enough or we’re not doing enough until I’ve really had the opportunity to work with my colleagues and analyze that record. … This will not be a politically influenced decision.”

Chief of Staff

Chatterjee said he had not given any thought to personnel changes. “In light of the difficult circumstances in which this transition is occurring, I think it is important for all stakeholders of the commission, as well as us inside the commission, that we have some continuity moving forward.”

Chatterjee praised Chief of Staff Anthony Pugliese. “There [are] tremendous administrative responsibilities in the chairman’s office, and as someone who has been a commissioner for the past year, from what I’ve seen, Anthony has managed the administrative capabilities of the agency very well.”

Speaking at the Energy Bar Association’s Mid-Year Energy Forum on Tuesday, however, Commissioner Richard Glick said Pugliese’s appearance in July on the conservative “Breitbart Radio Show” was “ill-advised.” (See Democrats Call Out ‘Partisan’ Remarks by FERC Chief.)

“To go on various radio shows and make attacks against the governor of New York and then to … take certain positions that were more in line with … the administration than the commissioners I think is not a wise strategy,” Glick said. “I’ve had this conversation with the chief of staff; I’m sure others have as well. And I’m hoping that we won’t see that anymore. I thinks it’s very important that we demonstrate that we truly are independent and that we’re acting on what we think is in the best interest [of the public and] … make sure that we’re not either doing the [bidding] of the Trump administration, or … [House Minority] Leader [Nancy] Pelosi [D-Calif].”

“I agree completely with Commissioner Glick that we should be separate and apart from any political influence on either side,” Chatterjee said Wednesday. “No one was more committed to ensuring the depoliticization of the agency and not allowing political interference than Kevin McIntyre. And I think that if you look at the record under Chairman McIntyre’s leadership, there’s no evidence that there’s been political influence or interference at the agency. … And I’ve made very clear to all of the staff at the agency, including the chief of staff, that the agency’s independence from political influence will continue.”

The chair downplayed recent 3-2 rulings by the commission on natural gas pipeline certificates, in which Glick and Commissioner Cheryl LaFleur have insisted the commission’s analyses include consideration of downstream greenhouse gas emissions.

“While much has been made of the fact that we’ve been having 3-2 votes and it appears to be political, I think there’s some genuine disagreements on policy, but my colleagues have been narrow and discreet in their dissents. And I view that as an opportunity to build consensus.”

He said he wasn’t concerned about 2-2 ties since the departure of Commissioner Robert Powelson in August. He also noted that in his resignation letter to President Trump, McIntyre said he felt he could fulfill his duties as commissioner. “I expect he will do that,” Chatterjee said. “In terms of votes that he will cast, that is entirely his determination and decision. … I am not empowered to deny him his vote.”

Going Forward

Chatterjee said his priorities as chairman will be the same as they were when he was a commissioner. He listed the reliability and resilience of the grid, processing LNG facility applications, breaking down barriers to entry for new technology, and cybersecurity, the last of which “continues to be foremost on my mind.”

He declined to give a timeline on the commission’s resilience proceeding, nor on its work on updating its policy statement on pipeline certificates.

Asked what he thought could accomplish before the end of the year, he half-jokingly said, “I think my first and most significant priority that I know I have the support of my colleagues on — but I’m not sure whether I’ll be able to achieve it — is to fix eLibrary.”

Earlier this month, Trump nominated Bernard McNamee, DOE executive director of the Office of Policy, to the commission. Chatterjee said the commission’s work would proceed without regard for McNamee’s confirmation process. That includes a disregard for the date of McNamee’s hearing before the Senate Energy and Natural Resources Committee: He seemed unaware that it had been scheduled for Nov. 15, the same as the commission’s next open meeting.

“There’s so much on the commission’s plate right now that we need to take action on.”

Based on his career as McConnell’s aide and his own nomination, he said he knew that the road to confirmation “is an unpredictable one.”

Rich Heidorn Jr. contributed to this report.