As the Supreme Court’s ruling in Trump v. Slaughter raises questions about the future independence of federal agencies, energy industry observers are assessing the decision’s impact on the Federal Energy Regulatory Commission (FERC) and how closely the agency may align with White House priorities.
Even if commissioners are not at risk of removal today, Bracewell’s Scott Segal told S&P Global’s Gas Daily that “it still may change the practical dynamic at FERC, even as we sit here, because it will lash FERC closer to administration priorities.” Segal added that the decision could affect “the political direction that a proceeding could undertake … because the FERC is, simply put, more politically exposed.”
Looking longer term, Segal warned that increased political influence could create a regulatory “whipsaw effect” and lead companies to reassess how they evaluate risk. “You wonder if in the future, when contracts and financing structures are put in place, if they will have to take into account greater political risk,” he said.
