Cassidy Proposes Questions For Senate Energy Committee To Ask FERC

Press Release

Ahead of the Senate Energy and Natural Resources Committee hearing on the nominations of Cheryl LaFleur and Norman Bay to the Federal Energy Regulatory Commission (FERC), Congressman Cassidy suggested a list of questions he hopes the committee will address.

"FERC's decisions can make or break Louisiana's ability to increase oil and gas jobs. Our workers are ready and waiting to use our natural resources to lead the way in achieving energy independence," said Rep. Cassidy. "President Obama and Harry Reid's war on energy is no secret. Therefore, it must be a priority to make sure FERC's leaders can provide proper oversight and regulation so we can push our energy industries forward."

Questions For FERC

Under former Chairman Wellinghoff, FERC's "top initiatives" included: smart grid; demand response; integration of renewables; and Order No. 1000 -- transmission planning and cost allocation. How will you redirect FERC's priorities during your tenure as Chairman?

Do you agree that FERC's limited resources would be better spent on priorities such as natural gas pipeline permitting, hydropower licensing and relicensing, LNG facility siting, ensuring the proper function of organized wholesale electricity markets, and grid reliability?

The President has directed EPA to issue proposed regulations limiting emissions of greenhouse gases (GHG) from existing fossil fuel electric generation units by June. Have you or anyone at FERC had discussions with any EPA or DOE staff, or provided them information, regarding the potential reliability or price impacts of EPA regulation of GHGs from existing fossil fuel units?

If the Administration continues down its path of taking fuel choice decisions away from the electric industry, and reducing fuel diversity, what negative consequences would you expect?

Can you please discuss what FERC is doing, and plans to do, to review and improve wholesale power market rules so that markets are sending the proper investment signals in light of structural changes impacting the power sector?

When it comes to trading in natural gas and electricity markets, and without simply reciting statutory language, what is your understanding of how FERC defines market manipulation?

While FERC takes the appropriate steps to thoroughly review the abandonment application of the Midla Pipeline requested by American Midstream Partners, I hope the application will include an investigation on the following:
- How exactly were premium payments utilized in the process of maintenance and developing a long-term strategy for pipeline infrastructure to the region that would otherwise replace or modify Midla's service over the last several decades

- Were these premiums adequately reinvested in the repair and maintenance of the pipeline by American Midstream or were the premiums allocated and spent elsewhere within the company?

- Was the maintenance history sufficient in preceding decades to meet all standards for strategic pipeline planning to ensure the integrityand safety to customers in the region?

- Did the purchasers who recently acquired Midla adequately review the integrity of the pipeline, and were they aware of the physical state of the asset they were acquiring?

- And finally, if the purchases were not aware of the physical state or integrity of the pipeline, why did they fail to take such factors into consideration when purchasing the pipeline as a matter of due diligence?

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