An oversight hearing to examine the Federal Regulatory Commission.

Yeah.

Committee will come to order.

Oh.

Uh, I apologize for the late start time. I was, uh, a serve on the Foreign Relations Committee along with a couple of our members and, um, as we often find ourselves in that position, uh, we were in a mark-up and, um, had any of us left, they would have lost a quorum, so we ran over here as quickly as we could. Today the, uh, Committee on Energy and Natural Resources holds a hearing to conduct oversight over the Federal Energy Regulatory Commission, or FERC. Pursuant to the Federal Power Act and the, uh, uh, Natural Gas Act, the commission regulates the interstate transmission and wholesale market of electricity and natural gas as well as oil and gas pipelines and hydroelectric power. It ensures that Electricity rates are just and reasonable and licenses facilities within its statutory jurisdiction. All of these things happen to be vital to America's energy dominance, ensuring both our security and prosperity at home, and also our ability to advance the interests of the United States on the world stage by supplying the energy needs of others. Today we'll be hearing from FERC's five commissioners to report on their priorities and the commission's operations. They are Chairman Laura Sweat, and Commissioners David Rosner, Lindsay See, Judy Chang, and David Lissert. Following my opening statement today, and that of Ranking Member Heinrich, we'll hear opening statements from each of the commissioners, followed by questions from each of the senators in attendance. There was a time when the Federal Energy Regulatory Commission operated largely outside the public spotlight. Those days, of course, are now over. FERC now sits at the center of some of the most important questions facing our country. Reliable electricity, affordable energy, data centers, manufacturing, national security. Every one of these issues, in its own way, now runs directly through FERC. Some estimates suggest that the commission regulates activity representing roughly five percent of the American economy. This of course understates the matter because in reality the Commission's influence reaches much much further than that. Energy is an input for basically everything we produce, everything we do. So when energy becomes more expensive or when it becomes less reliable, every American pays the price in far more ways than one. That, of course, makes first mission more important now than ever. The United States is experiencing the fastest growth in electricity demand in a generation. After years of relatively flat load growth, utilities across our country are now forecasting dramatic increases, increases driven by data centers, artificial intelligence, advanced manufacturing, electrification, and industrial development. It means America is building again. It means investment is returning. But none of it happens if we cannot produce and deliver enough reliable electricity. That's why I was encouraged by the Commission's recent action, under section two O six of the Federal Power Act, addressing how regional transmission organizations and independent system operators manage large load interconnections. Rather than imposing a rigid one-size-fits-all federal mandate, the commission directed six regional grid operators to re-examine how large data centers and other major new customers might connect to the grid. With particular attention to interconnection delays, who pays for the necessary upgrades, and what impact all these things might ultimately have on consumers. These are extraordinarily difficult questions. No one, uh, suggests that they are easy. Large data centers create tremendous economic opportunity, but they also consume enormous amounts of electricity. Existing rate payers should not be forced to subsidize costs that properly belong to new entrants. But we also cannot allow outdated processes to prevent new investment from connecting to the grid. Getting that balance right will, of course, be difficult, but I'm confident that if you maintain your current trajectory, uh, you, uh, as our, uh, commissioners will be more than up to that great task. I'm also encouraged by FERC's recent efforts to improve the permitting process for natural gas infrastructure. FERC is modernizing environmental reviews, reducing unnecessary delays, uh, uh, those that don't, uh, provide any additional value added on the environmental front. And it's expanding the use of blanket certificates for routine upgrades. Every year that we happen to delay needed infrastructure is another year that um Americans have to pay higher prices and face greater reliability risks. More importantly, I hope today's discussion reinforces something that should unite all of us, uh regardless of political party, is this committee continues its work on permitting reform I hope we can build on the bipartisan momentum that has emerged around many of these issues. Look forward to getting, uh, perspectives from each one of you today on the challenges ahead and to working with each of you to ensure that we lower costs for consumers while simultaneously improving grid reliability. Thank you, member Heinrich.

Thank you, Chairman Lee, and, uh, special thanks to all five of, uh, first commissioners for attending this hearing today. We very much appreciate having you here. Uh, the Federal Energy Regulatory Commission has long been an important independent agency. It serves the public interest by regulating electricity, hydroelectric dams, natural gas, and oil in a manner that is both fair and impartial, uh, from the President and from Congress as required by statute. Now, historically, uh, considered by some to be a bit of a sleepy agency, FERC faces a very pivotal time in our nation's history right now. Uh, electricity prices are rising, and electricity supply has not been able to keep up with demand. According to a recent report, seventy-five percent of US adults say that they've noticed their home energy costs increasing in recent years. Some of that blame can be squarely placed on our current president. I recently released a report on how this administration is waging a war on cheap, clean energy, and the impact of that is rising energy costs. The administration is slow-walking installing seventy-three gigawatts, think about that, gigawatts of solar, forty-three gigawatts of storage, thirty gigawatts of onshore wind, and sixteen gigawatts of offshore wind. Constraining this build-out would increase economy-wide utility costs by approximately eleven point six billion dollars per year. But that is not the only reason that costs are rising. We're also seeing a rapid increase in electricity demand and are hampered by not getting enough power from generators to end users and struggling to quickly add new needed generation sources. Luckily, we can take steps to improve our grid to help make help move electricity more efficiently and bring new power sources online. I recently launched an initiative called Grid for Growth, a plan to meet surging electricity demand without shifting the cost of that to consumers. This effort complements ongoing efforts to pass bipartisan permitting reform. And as part of the effort, last week I introduced the Grid Connection and Congestion Management Act, to create a faster path for generator interconnection. Moodled after ERCOT's connect and manage process, projects are rewarded for being flexible in their output by getting onto the grid faster. Other bills will follow in the next few weeks and months. but our ability to meet the rising needs of the grid are based in large part on our ability to build more inter-regional transmission lines. That is why permitting reform is so important. Inter-regional transmission lines can be the best line of defense against extreme weather conditions, improving reliability, and reducing consumer costs. While FERC requires some inter-regional transmission planning under orders number one thousand and nineteen twenty, This coordination has not unfortunately produced a substantial number of inter-regional transmission projects in the last decade. We need to find a way to build more high-voltage transmission lines in the next decade. Our ability to grow our economy depends on it. And to FERC's credit, the agency has taken active steps to confront energy challenges. Last month, FERC issued six show-cause orders requiring grid operators and their transmission owners to justify or propose changes to their current tariffs with respect to large load customers. These steps by FERC can help protect consumers and encourage grid operators to integrate new advanced technologies when adding new large loads to the grid. FERC choosing to address major electricity users like data centers and manufacturers is an important step in the right direction. Nevertheless, more action can and should be taken to ensure that consumers are protected from sky-high costs associated with data centers, manufacturers, and other large loads. I have been working on a bill intended to do just that and hope to speak more about that soon. However, all of these efforts that I mentioned will be meaningless if the independence of FERC is erased. The Supreme Court's recent decision has put the impartiality of independent agencies at risk. Now more than ever, FERC's mission to ensure that utility rates remain just and reasonable, and not unduly discriminatory or preferential, is critical to making sure millions of Americans can keep their lights on. During this once-in-a-generation moment, I continue to believe that regulatory certainty and the freedom for commissioners of independent agencies like FERC to act in a way to provide that certainty will be critical in meeting the energy challenges of today. And I hope to discuss these issues with each of you during this hearing, and very much look forward to it. Thank you, Mister Chairman.

Thank you, Senator Heinrich. We'll now turn to each of the commissioners here today, give to give their opening statements. Um, and of course your full statements will be entered into the record in full. We'll begin with the first chairman, Laura Sweat. The Senate confirmed uh uh Chairman Sweat back in October of of twenty twenty five. Prior to that, she served At FERC is a legal advisor to two commissioners, including a former FERC chairman, and she litigated Federal Power Act and Natural Gas Act matters, uh, uh, for fifteen years. Chairman Swede, you're now recognized and you may give your opening statement.

Good morning. Thank you, Chairman Lee, Ranking Member Heinrich, members of the committee, for the opportunity to testify today. My testimony is rooted in the core principles that anchor my approach as FERC chairman, that is affordability, efficiency and legal durability. For many households, higher utility bills are debilitating burdens with personal consequences. I understand this firsthand from my childhood. M- monthly bills caused me deep anxiety when I was a child, and I carry the weight of that financial stress with me every day in the way that I lead this agency. And it forms my resolve to ensure that families across the country don't have that same burden and shouldering unnecessary costs. As electricity demand accelerates, the Commission is acting decisively to ensure that the grid remains reliable and affordable. For too long, this country has deferred critical decisions essential to maintaining the grid and that era has ended. The responsibility to steer our country through the energy future is squarely upon me and my four colleagues. The Commission's actions under my leadership reflect an unwavering commitment to our statutory obligations to ensure just and reasonable rates. At no point in its history has FERC advanced a more comprehensive set of reforms designed to safeguard American consumers nor been, I think, subject to leadership as consumed with honoring the law as I am. From aggressively modernizing natural gas permitting to instituting far-reaching transparency requirements in our June orders, we are executing a disciplined strategy to reduce costs while reinforcing reliability and encouraging infrastructure investment. That is a very tough needle to thread, and I am committed to doing it. At our June meeting, we took bold action to strengthen cost, discipline and reliability. You've mentioned, both of you, that we ordered the six jurisdictional electric markets to produce the most detailed cost transparency measures the Commission has ever required. Those actions should equip our State counterparts, who are responsible for doling out household bills, with tools to assess the expenditures, defend and ensure that emerging load drivers, such as data centers, do not impose unjustified costs on households or small businesses. Additionally, we have established transparent protective rules for integrating new loads quickly without compromising reliability. Still in the vein of affordability, the one of the most effective ways to lower energy prices is to eliminate infrastructure constraints that artificially restrict supply. Recent extreme weather events show this clearly. The regions that don't have enough gas pipeline capacity experience prices many times higher than those with sufficient infrastructure. These disparities translate directly into consumer hardship. In response, the commission is implementing targeted reforms to streamline permitting and accelerate project development. Following the seven-county decision and under my leadership, we are realigning our environmental review practices with the commission's statutory role as an economic regulator, a fact that appears to have been lost on several of my predecessors. Since I joined the commission late last year, FERC has proposed significantly expanding blanket authorizations for routine pipeline activities and initiated parallel efforts for LNG and hydropower to ensure that these projects can move quickly without burdensome case-specific reviews but based on FERC's decades of experience. These re-informs, these reforms, and deliberate recalibration of our processes will reduce administrative friction while preserving full statutory compliance. More energy means lower bills. Removing fast but maintaining regulatory excellence so that those investing in and building infrastructure are less vulnerable to judicial review through excellent orders and the associated gridlock and wasted resources that come with orders that are not. In closing, the work ahead demands clarity, urgency, and strong leadership. Our systems are changing faster than ever and the choices we make now will determine whether the nation is prepared for the coming decades. We've taken meaningful steps in the past nine months of my tenure, but the path forward requires sustained resolve, smarter tools, and dexterity as new technology and pressures emerge. I and my family have made many sacrifices so that I could realize the honor bestowed upon me

Thank you, Chairman Swede. We'll now hear from Commissioner David Rosner. He formerly served as an energy energy uh analyst at FERC. Um, he was also um someone who spent two years detailed of uh to this committee, in addition to prior service that he had at the US Department of Energy. He has served on uh FERC as a as a commissioner since two thousand twenty four, including as chairman uh for several months in twenty twenty five. The chair now recognizes Commissioner David Rosner.

Chairman Lee. Ranking Member Heinrich, uh, and members of the committee, it's an honor to appear before you alongside my colleagues to discuss FERC's work to deliver affordable and reliable energy for all Americans and our commitment to upholding Congress's vision for a bipartisan, independent, resource-neutral regulator. This mission entrusted to us, while simple to articulate, is increasingly complex to execute. Energy demand continues to grow at a pace that we haven't seen in a generation. driven by growth in new industries like artificial intelligence, reshoring manufacturing, and increased use of electricity in homes and businesses. And we face these challenges at a time when families and small businesses struggle with high prices especially in their utility bills. So while meeting this moment presents challenges, it also creates opportunities for us to modernize our nation's energy infrastructure. Upgrading our energy system is necessary. to ensure that every American receives reliable and affordable power, and is essential to our country's economic competitiveness and national security. With this in mind, I'd like to highlight a few of the specific actions FERC has taken uh to confront the challenges and realize the opportunities before us. First, we are accelerating the addition of new electric generation of all kinds. Building energy resources needed to meet growing demand and reducing consumer costs is my top focus. We have implemented FERC's landmark order number twenty twenty-three generator interconnection form reforms and fast-tracked more than fifty gigawatts of shovel-ready power plants. Looking forward, I'm encouraging grid operators to deploy automation and artificial intelligence tools that have been shown to accelerate steps in the interconnection study process from years to weeks. Second, we're establishing forward-looking grid planning centered around reliability, affordability, and economic growth. This year, FERP will begin acting on transmission providers' proposals to implement order number nineteen twenty, which modernized long-term transmission planning. When I arrived as a commissioner, this rule was divided along party mi- lines. Thanks to extensive State engagement and collaborative problem-solving, I am very proud that it is bipartisan and unanimously supported. Third, we are emphasizing predictability, speed, and legal durability for infrastructure permitting. Since January, twenty twenty five, FERC has issued over a hundred and twenty permits for hydropower and natural gas projects moving from NEPA review to final permit more than thirty percent faster than was typical during the last decade. Critically, we have done this without compromising quality. FERC's permits have routinely been upheld in court in recent years. And looking to the future, permitting efficiency will become only more essential as demand growth accelerates. Fourth, We are embracing innovative pathways to power data centers and other large loads while protecting consumers. Over the last year, the Commission has acted to ensure that demand growth leads to a more reliable, affordable, and sustainable grid, and that America can win the AI race without regular families paying for it. At FERC, this is another top priority. In December and January, the Commission implemented programs in the PJM and SPP regions to pair new large loads with new generation. This pairing reduces how much these projects lean on the grid, it minimizes the need to construct additional transmission upgrades, it promotes flexible operations, and it helps ensure that new loads pay their fair share. In parallel, more than thirty States have adopted special retail rate structures for large loads, an important complement to FERC action and a reminder of the cooperative federalism needed to protect regular consumers. Finally, Building upon the progress and the record developed in response to Secretary Reitz's A. Noper, in June, the Commission issued a show cause order to each regional grid operator, asking them to modernize their rules for interconnecting large loads. These orders are based upon four key pillars, protect consumers, enhance transparency, safeguard reliability, and foster innovation. Put simply, the goal is lowering costs, protecting grid reliability, and helping new customers and power plants get online faster. Fifth, we continue to enhance grid security and reliability through modernization and flexibility. It's essential that we continue to deploy twenty-first century reliability solutions like advanced demand response, dynamic line ratings, predictive artificial intelligence, and emerging cyber security technologies. And FERC's work now includes the development of robust reliability standards for large loads. Sixth, we're staying laser laser focused on affordability. In addition to the examples I've already mentioned, over the last two years FERC has approved expanded competitive electric markets in the West and the Southeast, which will enable customers access to lower-cost power. And in PJM, we approved a temporary price cap that saved consumers more than twenty-five billion dollars. It's my priority to deliver more examples like this in twenty-twenty-six. Finally, I'll conclude by highlighting the value of our current consensus-driven mindset. I'm immensely proud that the vast majority of orders I have voted on have been bipartisan and unanimous, including every single energy project permit. This consensus ensures regulatory predictability, legal durability, and strong outcomes for all Americans, informed by five distinct distinct perspectives among the Commissioners. I want to thank my colleagues for their collaboration, which I'm confident will continue to deliver for the country. Thank you again for the opportunity to testify today, and I look forward to your questions.

Thanks so much, Commissioner Rostrum. We'll hear next from Commissioner Lindsay See. Uh, she became a member of the Federal Energy Regulatory Commission in twenty twenty-four. Prior to that she had served as the Solicitor General of the state of West Virginia. Uh, a- and in that position she argued before the US Supreme Court at least twice. Uh, before that she was a a litigator in private practice, uh, practicing with the law firm of Gibson Dunn. Uh, Commissioner See? We now recognize you. You may begin.

Chairman Lee, ranking member Heinrich, committee members, thank you for inviting me and my fellow commissioners to appear before you today. While the five of us are at this table, please let me also recognize the hundreds of FERC employees whose expertise, integrity, and dedication make the commission's work possible. I'm honored to serve with public servants at their high caliber and the country is better for their work. The energy landscape has changed dramatically since the last time I and two of my colleagues appeared before this committee in twenty twenty four. Some issues persist, but many new ones have risen with striking urgency. All of them are defined by the overarching reality that America needs more power. And demand growth from domestic manufacturing, AI, and data centers and other sectors is an opportunity. A growing load and a growing grid are signs of a growing economy. But American competitiveness depends on our ability to deliver reliable and affordable power. So FERC, at FERC we need decisive flexible action within our legal authorities that let our regulatory framework keep pace with America's needs. That requires focus on three priorities, speed to power, keeping electricity affordable, and the kind of regulatory certainty that gets steel in the ground. So first on speed to power, we need processes that get new generation and large new loads connected to the grid quickly and pipelines and transmission that get power where and when it's needed. FERC has taken important steps to meet these challenges. We've talked about them already. Last month, for instance, we issued a series of orders that require clear rules for how organized electricity markets study and integrate large new loads. These actions are designed to improve transparency, coordination, and speed when it comes to large load interconnection. They also recognize that regional differences matter as part of a shared goal of connecting new demand safely and efficiently. We're also reforming permitting processes to speed infrastructure review. We've taken a close look at what NEPA does and does not require, as well as cut out the unneeded construction delays after a review is done. Modernizing permitting can uphold our statutory duties while improving predictability and helping get needed projects built. Second, we have to keep electricity affordable. Building the infrastructure to meet growing demand is expensive. But as we make investments across the electric system, we have to keep the consumers who ultimately pay for them at the center of our decisions. One path to cost responsibility is encouraging alternative transmission technologies when they make engineering and economics sense. While not always the right fit, these technologies can get more out of the existing system, speed interconnection, cut down on costly traditional upgrades that would otherwise show up in customers' bills. We also have to keep a close watch to ensure well-functioning, competitive electricity markets. Over time, organized markets have delivered real value for consumers. But today's markets were not designed pace and scale of modern large load growth. So FERC is focused on reviewing novel solutions we're seeing from various market regions and we're also keeping close attention on the regions that have more work ahead. In these and other areas, our guiding tenet should be that those who drive costs or benefit from new infrastructure pay their way. By keeping that focus, building needed infrastructure and protecting customers can be complementary goals and not competing ones. Third, regulatory certainty drives infrastructure. As a lawyer, I never forget that if FERC orders don't hold up in court, infrastructure doesn't get built. States, utilities, and developers need confidence in our regulatory processes. That comes from applying the statutes Congress enacted to the specific records before us. It also means not hesitating to improve when experience shows that we can move faster and in a transparent and legally responsible way. That drive to improve is animating our recent work in natural gas infrastructure. In May, we proposed expanding the blanket, program by upping cost thresholds and adding new categories of routine projects for streamlined review. The goal is to modernize permitting to reflect today's infrastructure and cost responsibility needs while preserving resources for more complex reviews. One of my priorities has been expanding that approach to the liquefied natural gas infrastructure project category. I'm proud that we're now several months into a process to design a more efficient and predictable program for the LNG space that fully meets our legal responsibilities. We're also focused on our hydropower related reviews. Hydro brings critical reliability features to the grid, and I support the Commission's continuing efforts to find opportunities to improve post-licensing processes in this important area, too. Today's energy landscape reveals extraordinary opportunities, but also generational challenges to meet them. In these areas and the others I know we'll be discussing today, I resperk uh I respect FERC's twin duties not to go beyond our statutory limits, but also not to hold back, exercising the power we do have in a moment that requires decisive action. Thank you again for the opportunity to testify today, and I'm looking forward to the discussion and questions.

Thanks so much, uh, Commissioner See. We're we're gonna hear next from Commissioner Judy Chang. Commissioner Chang, um, uh, along with Commissioners, uh, See and Rosner has served on FERC since two thousand twenty-four. Um, prior to that she served, uh, in Massachusetts' state government. as the Under Secretary of Energy and Climate Solutions and also taught at the Kennedy School at Harvard University. The chair now recognizes Commissioner Chain.

Thank you. Chairman Lee, Ranking Member Heinrich, and members of the committee, thank you very much for inviting me and my fellow commissioners to testify here today. Since I last appeared before the committee two years ago, the country's energy sector has transformed at a pace that would have previously be unimaginable. From the position uh at the commission, I'm focused on setting the rules of the road that ensure that our energy system can keep up with the rapid change and continue to deliver affordable and reliable electricity to the American people. I would like to highlight three priorities, set clear rules, upkeep efficient markets, and drive efficient planning and building of infrastructure. First, Our most pressing mandate is to set clear rules to enable the interconnection of new large loads and deliver the electricity needed to power them while protecting existing customers against reliability risks and unwarranted cost shifts. The Commission has been tasked with solving this problem and over the last year we have taken action based on the substantial record before us. Last month we reached an important milestone through the initiation of six regional proceedings in which I highlighted a a number of important issues. Given the increased cost of power in many regions of the country, affordability must continue to be top of mind. The Commission must ensure that creating new pathways for large loads does not lead to major cost shift to existing customers. Though we are improving our understanding of the types of tools that can provide these protections ultimately the details will matter. In addition, the sheer size of the large computational loads will have m- major reliability implications for the grid. I will continue to work closely with NERC to understand the risks and make sure they are addressed through appropriate commission action. With ever-increasing importance, advanced transmission technologies will play a major role in getting most out of our existing and expanding grid, which will in turn help ensure affordability and reliability. Overall, the commission has an important responsibility as both the Economic and Reliability Regulator to take actions that protect consumers. Second, as we experience rapid growth, the Commission must work to ensure that our wholesale electricity markets continue to deliver efficiencies for customers. For decades, FERC has promoted the development of competition in the electricity and natural gas sectors, and I remain fundamentally supportive of those efforts. Our current market structures have been tailored over time to each region's specific needs, but they must now adapt to the major changes underway. In the eastern interconnection, markets must find ways to keep pace with the growing demand, on the supply side by modifying capacity, energy and ancillary services markets to provide the right economic signals to incent new generation and preserve needed existing resources, and on the demand side by enabling more savings through increased participation of demand side resources. In the Western interconnection, new markets are taking shape that may present more complex designs, seams, and dynamics to resolve than their Eastern counterparts. One of my priorities is to work closely with the market operators and and the Western stakeholders to identify and address those challenges, to optimize operations that prevent potential manipulation. Third, the Commission must continue to set clear rules and regulations so that the infrastructure needed to support the US economic growth can be built. More focus is still needed on planning, particularly on the backbone transmission system through regional and inter-regional processes. Order nineteen twenty set the appropriate approach for regions to reach agreement on the long-term trajectory of grid gr grid growth and cost allocation. I'm looking forward to see that the compliance process has begun and working with my colleagues to implement those reforms. The commission also has prominent role in siting hydroelectric and natural gas infrastructure, and we are looking for efficiencies that will facilitate the permitting of next generation of energy projects. We can gain most efficiencies by ensuring that the roles and the responsibilities are clear from the outset, and that our decisions are legally durable and account for people who live near the projects. Making the appropriate process changes can improve access to energy, which in turn improve energy affordability and reliability. I hope that the commission can continue to be good partners to states and regional entities in this effort. Again, thank you for the opportunity to testify and happy to answer questions as we get to them. Thank you.

Thank you. Uh, and I'll, uh, turn now to, uh, Mister Lissert who comes to us, uh, uh, with a distinguished career, twenty years in, uh, public service, uh, both the state and federal level, and also, uh, from the Service and Marine Corps. So, Mr. Lester, your uh remarks please.

Thank you, Senator, Chairman Lee, Ranking Member Heinrich, distinguished members of the committee. It's good to be back before you again. I know it's been a few short months since I was last he- since I was last here, and I was beginning to wonder whether you missed me or not. So it's good to be back. Um, it's my honor to serve the American people by implementing the Commission's statutory mandate to ensure just and reasonable rates for the Commission's reliability for reliable electricity, to site natural gas pipeline infrastructure, and liquefied natural gas facilities and licensed non-federal hydropower facilities. I'm also thankful that the Senate confirmed my appointment to serve on the commission for a subsequent five-year term. I'd like to speak on a few of our accomplishments since I joined the commission and addressed my priorities going forward. I will also discuss where I believe Congress should effectuate important reforms so that the American public can benefit from the world-class infrastructure that they deserve. Uh, I'll repeat my Commissioner's sentiments on the June open meeting where the commission took bold action where we where we in- issued six show cause orders, one to each of the RTOs and ISOs within the commission's jurisdiction. The orders direct these groups where the majority of Americans reside, to either show cause why their current tariffs do not need to be reformed, or to file reforms to ensure that large loads, such as data centers, can connect to the transmission system in a swift manner. Importantly, the show cause orders direct the grid operators to ensure that such reforms insulate customers from undue costs stemming from the interconnection of data centers. As I have told this body numerous times, my pledge to the American people is to keep consumer costs top of mind. And I will do so as I continue to review the responses to the show cause orders. This commission also continues to permit projects and issue such authorizations in a timely and legally durable manner. At a time when energy demand is rising and elect- and reliability challenges- challenges are mounting the commission has acted with efficiency and urgency. Year to date, the commission has already issued fifteen percent more orders over the same time period into twenty-five. Since I've joined the Commission, we voted in over seven hundred and twenty proceedings. And the Commission has authorized the addition of approximately thirteen point four two million decatherms per day of natural gas transportation capacity, enough fuel to support the electricity needs of over sixty million American households. But how much energy is that? It's enough to power every household in all States represented by the twenty committee members in this body, plus an additional twenty million Americans. The Commission has also certified roughly nine hundred and eighty thousand decatherms per day of storage deliverability. which provides a critical safety net for the nation's natural gas supply, that can help balance seasonal spikes, mitigate price volatility, and ensure reliability. As Commissioner, I will continue my steadfast focus on removing distractions and extra jurisdictional side quests in strict alignment with our statutory authorities granted us by Congress to ensure the Commission continues to expeditiously review all matters before us under the FPA and the NGA. One such example relates to how the Commission performs its statutory responsibilities under NEPA. Frankly, state and federal reviews have bogged down investments in infrastructure to the detriment of our nation our economy and our environment. We are looking at ways to streamline our internal process to better align obligations under NEPA with the Supreme Court's decision in seven county. As I've said in last month's open meeting, we'll begin implementing changes to the way we evaluate projects against their environmental backdrop as appropriate, and in such a way as to ensure the analysis actually informs the Commission's evaluation of the project at hand, rather than wading into the never-ending quick-stand inquiries about where to draw the NEPA line. We will fulfill the requirements under NEPA, but in a way that is consistent with the NEPA's textual f- textual focus on the proposed action as outlined by a unanimous Supreme Court in seven county. As you've heard me say before, affordability and reliability are my top commitments, and this load growth must not come at the expense of ordinary Americans who are already concerned about their energy bills. Although the commission can take significant action to help ensure America is positioned to win the challenges of the century we need help from Congress. And as sa- as I said before, permitting statutes must be designed to ensure responsible infrastructure, develop it and not stymie it. I'm of the opinion that durable permitting reform must be enacted in the hundred and nineteenth Congress. My view has been reinforced as a commissioner, where I have witnessed firsthand how difficult it is for companies to invest in our infrastructure. I continue to approach the responsibility of commissioner with diligence and dependence and a clear understanding of whom I serve, the American people. It is a profound honor to serve on this commission, Thank you, Chairman Lee, Ranking Member Heinrich, and the rest of the distinguished members of the committee, um, for bringing us together today to discuss these important issues in oversight. The only way we win, the only way the American people win, is by coming together to craft solutions to these problems before us. And I look forward to answering your questions.

Thanks so much, uh, C- Commissioner Lissert. Um, I apologize, I had to step out briefly. Th- there, um, when you first start to watch proceedings in the Senate, they can look chaotic. And then when you read, uh, watch them more, they can look even more chaotic. Sometimes we have multiple committees going on at once, with multiple committees voting at the same time. Uh, rig- rigid quorum requirements can be unforgiving, so that's why we sometimes have to balance it out. We'll now begin our five minute rounds of questions, alternating between Republicans and Democrats in order of seniority, subject to the early bird rule. And, and I'll begin. Uh, Miss, uh, Commissioner Sweat, Chairman Sweat, I'd like to begin with you, if that's okay. Uh, last month, FERC took bold action to address issues related to uh uh the interconnection of data centers to the grid. Now, i- your orders were designed to uh uh ensure that each region uh will be able to take its own approach to prevent data centers from raising costs to regular consumers. Um, uh the - the orders also seek to modernize the uh electricity sector, which is operated under the same regulatory paradigm for many decades. Uh, even as technology has changed, even when population centers and, uh, electricity demand patterns have, uh, have evolved significantly. Can you explain how, how you intend to use these orders, uh, to help modernize electricity markets and usher in a new era of innovation in the electricity sector?

Thank you for the question, Senator, modernizing and innovation were absolutely the goal of those orders, so I'm very pleased that that has come through. So, it's very clear to me after my decade and a half of litigating FERC law that utilities and markets do not want to change with the exception of a few of them. And it requires aggressive instruction for them to innovate. And so these June orders were the perfect vehicle for us to employ the market experts, the markets themselves, in order to push the grid into the future. And so we are accomplishing that. some main tenants here, which is first, we have directed fast on type timeline modernization of transmission services, and also the study processes that our jurisdictional markets employ. Uh, this will save our consumers a lot of money, and with our instructions, they are now in the markets forced to consider advanced transmission technologies in their study processes, and also to study load that may appear near-generation which will uh reduce the amount of transmission built that is necessary to get the load online. These are all innovations that are not necessarily considered across the country. Some markets have proposed some type of them, but now we are really prompting them on a shot clock to do it. And the third component was that we are forcing more accountability to solve the generation issue. Now, you well know that FERC has no jurisdiction over generation, but because we have directed each market to come back to us, with reporting on what they intend to do, how to handle this generation cliff that we are standing on as a nation, that is forcing thought and hopefully action. And together, these tight timelines and instructions should bring our grid to the future.

Right. Based on the, eh, the interconnectedness, so to speak, of the, of generation and transmission. And, yeah, that makes sense.

Yes.

Um, uh, Commissioner Ching, um, FERC order one thousand was issued by the commission back in two thousand eleven. Its goal was to usher in more competition in the electric power sector, uh, particularly by identifying regional transmission upgrades that could be made and ensuring that those selected projects were awarded through a competitive process. A decade and a half later, um, the FERC order one thousand has has not yet fully materialized. What else do you think the commission can do to bring more competitive pressure into the electricity sector, uh, in a way that's likely to improve conditions, including prices and reliability for consumers? And what what action can Congress take to be helpful?

Thank you, Chairman, for the question. Um, I th- I think I wanna h- first highlight what you already said, which is the intent of order one thousand regarding competitive transmission really has not materialized. There are some regions that I have definitely spent the last decade or so implementing competitive processes, um but to actually bring efficiencies and cost savings to consumers, um those processes are really just beginning to bring some benefits to to the to the grid. And I do think that um we should find additional efficiencies through competition where it's possible. And um as as you probably heard from my uh opening statement, the backbone transmission system is extremely important in integrating the large loads that we're seeing and the large generation that we're adding to the system. And to bring down the cost to all consumers require competition. And um I hope that uh, order one thousands in the, in the, and the, uh, the original, uh, goals of order one thousand could be materialized in the future. Thank you.

Uh, thank you. Commissioner Le- LeCert, um, I think it's fair to say that natural gas is, um, is a key element. Some might say backbone, others might say cornerstone or a keystone of, um, of, of a reliable, affordable electric power grid. And This commission has been moving quickly to help get needed infrastructure approved. Um, you know, based on this understanding, would you walk the committee through FERC's recent accomplishments on natural gas, uh, the - the certificates and the capacity you've approved, the steps you've taken to speed up reviews, and what that might mean for consumers, uh, particularly as they get their energy bills.

Yeah. Absolutely, Chairman. Um, so first you can take a look at how we survived the recent winter storms and And it's really easy to see the, the way of the future, how we power the country, uh, through the future is with natural gas. And the economists at FERC have been consistent and clear that with additional supplies of plentiful and abundant natural gas, that will help, um, drive prices lower. Um, and it's e- simply economics, you know, you're gonna increase the supply, um, you're gonna increase the opportunities for consumers to utilize it. Um, and especially in the municipally owned utility space. You know, some of these municipal governments are captive by one single pipeline, which they get their rates from. If we could, we can increase competition for natural gas, especially amongst the municipally owned utilities, I think you're gonna see prices go down. I think you're gonna see investments in our infrastructure. You're gonna see, um, re-onshoring of, of industry, you're gonna see data centers grow, um, which is of vital importance to our country. Um, but we're gonna do it in a responsible way that protects the consumers. And we're we're doing that right now in a bipartisan way with all five commissioners.

Thank you. Senator Heinrich.

Thank you, Chairman. Um, I was, I was pleased to hear, uh, Commissioner See, Commissioner Chang, and, uh, Chairwoman Swett all mention advanced, uh, transmission technologies. And we all know that, uh, there haven't always been the built-in economic incentives to put some of those things onto the grid. despite the fact that they can all uh often have very outsized uh and and and efficient impacts um on how we utilize the the existing grid um you know in a way that doesn't require enormous economic upgrades. So I I wanted to ask if you wanted to add anything to that conversation um and also what would be helpful from congress in terms of congressional action uh to reinforce a posture of incentivizing these these technologies commissioner see do you wanna jump on that first you were the first to mention it so

happy to senator heinrich yeah i i think when we look at our reliability and affordability challenges it it's certainly necessary that we need to build new infrastructure and that's expensive so nobody is denying that But there's also a really important moment for us to make the most out of the existing infrastructure, and that's when ATT's gets the these technologies can be incredibly helpful. They're not always the best solution, but they are and they can give significant speed and and cost savings to customers.

Mm-hmm.

So I was really, um, grateful that my colleagues and I were able to come together and include more language about that in the two O six orders we talked about to make sure that utilities take a hard

Mm-hmm.

look at these options when they're considering transmission upgrades. In terms of what more can be done, um, you know, FERC has limited authorities in this area, so we can encourage, we can incentivize, um, but if if Congress, if this is an issue Congress wants to take up and gives FERC more clarity and authorities I would love to see us to be able to run in this direction because I think it can be so helpful for both reliability and affordability.

Very helpful to either of the two, chair Wan.

Thank you for the question, Senator. I fully agree with you and Commissioner See on this one. we're looking at gets from every angle and we recently had a software conference where i had a panel added to have panelists specifically who have experience implementing gets in their utilities and their markets to see how that's playing out the um economics associated with it and i think it's getting a lot of traction the biggest barrier to answer your question and a final point the federal power act prohibits FERC explicitly from mandating building of any particular transmission facility except for the backstop sighting authority. And it is my per- personal opinion as a lawyer that gets fall under that category. So until Congress changes that prohibition, FERC's not really able to instruct anything more aggressively.

But you can uh force the analysis, which can then show the the the most efficient economic path.