Democrats are unconvinced that federal energy regulators can be independent in evaluating President Trump’s coal bailout plan, even after the chairman of the Federal Regulatory Commission tried to assure them that his panel is impartial.
Sen. Maria Cantwell of Washington and Rep. Frank Pallone of New Jersey, the top Democrats on the Senate and House energy committees, released a letter Thursday written by FERC Chairman Kevin McIntyre responding to their questions about “inappropriate partisan” public comments made by commission staff.
Anthony Pugliese, FERC’s chief of staff, told an American Nuclear Society conference last month that the agency is helping the National Security Council as well as the departments of Defense and Energy to create a list of “critical” power plants that could benefit from a Trump administration bailout.
Cantwell and Pallone wrote McIntyre shortly after to say they are “deeply troubled” by Pugliese’s comments.
“We believe this action would violate the requirement that FERC remain a neutral and unbiased decisionmaker,” the Democrats wrote of the commission, which is an independent agency.
McIntyre, a Republican nominated to FERC by Trump, responded to their questions in a Aug. 24 letter made public by the Democrats on Thursday. In it, he writes: “While I understand your concerns, I can assure you that this Commission remains independent and impartial.”
The Democrats are unimpressed with that response.
“While I appreciate Chairman McIntyre’s assurance of FERC’s continued independence, I am disappointed that he failed to acknowledge in the least that the partisan comments of his chief of staff, Anthony Pugliese, were wholly inappropriate, unhelpful and distasteful,” Pallone said Thursday. “To my knowledge, no other FERC chief of staff under either Republican or Democratic administrations has used that position as a platform for partisan attacks. The chairman should renounce Mr. Pugliese’s petty attacks and ensure that they are never repeated.”
Added Cantwell: “I hope Chairman McIntyre and each commissioner will publicly affirm that political and partisan statements perceived as prejudging an issue are not appropriate by the commission or staff.”
McIntyre, in his response letter, said no FERC staff has discussed with Trump administration officials the president’s plan to use emergency powers to subsidize uneconomic coal and nuclear plants.
McIntyre stressed that Pugliese, or any other FERC staff, does not speak for commissioners like himself. He also defended Pugliese. McIntyre said he authorized Pugliese to speak at the nuclear conference, under FERC normal protocol, however the chairman did not review Pugliese’s planned comments beforehand.
“I had no basis for concern with Mr. Pugliese’s participation in the interview or speech,” McIntyre said. “Pugliese is qualified to serve as chief of staff because of his demonstrated leadership ability. His prior government experience thoroughly prepared him for the management role in which he currently serves.”
FERC, including three commissioners nominated by Trump, has already unanimously rejected a proposal from Energy Secretary Rick Perry to provide special payments to coal and nuclear plants for their ability to store fuel on-site for 90 days.
But the Energy Department, on the orders of Trump, is considering a new proposal that may come before FERC, potentially using executive national security powers to force wholesale power operators to buy power from a list of coal and nuclear plants deemed “critical” to the grid.
Critics, which include almost the entire energy industry, say saving coal and nuclear plants would undermine the objectives of the large electricity markets that FERC oversees, which are meant to spur competition and ensure fair and reasonable rates for consumers.
