Pipeline projects in limbo as energy commissioner departs

Image
AP Washington
Last Updated : Feb 04 2017 | 5:42 AM IST
Major natural gas pipeline projects along the East Coast and Midwest face uncertainty as the federal agency that oversees the work loses a commissioner and will be unable to decide on projects indefinitely under President Donald Trump.
Democrat Norman Bay is stepping down today from the Federal Energy Regulatory Commission, leaving the five-member panel with just two commissioners, one short of the number needed to form a quorum.
Lack of a quorum blocks major agency actions and could short-circuit Trump's goal to jump-start infrastructure projects, a key part of his campaign pledge to create jobs.
More immediately, Bay's exit leaves the commission unable to approve or reject natural gas pipelines or settle proposed mergers, including a USD 12 billion plan to unite Great Plains and Westar energy companies in the Midwest.
At least a half-dozen major pipeline projects totaling more than USD 10 billion hang in the balance as FERC seeks a third commissioner to allow the commission to resume normal operations. The projects include the USD 2 billion Nexus pipeline in Ohio and Michigan; the USD 1 billion PennEast pipeline in Pennsylvania and New Jersey; and the USD 450 million Northern Access pipeline in Pennsylvania and New York.
The turmoil at FERC would not affect the proposed Keystone XL and Dakota Access oil pipelines. FERC does not issue permits for oil pipelines.
The agency approved a special order today granting additional authority to agency staff to carry out some of the commission's responsibilities, but the order does not allow approval of major projects or mergers.
Senate Energy Committee Chairwoman Lisa Murkowski said she was deeply concerned about the shortage of voting members and said she has advised the White House for months of the need to nominate a new commissioner.
"We have not seen any names" of possible nominees, Murkowski, R-Alaska, told reporters this week.
"I would think (White House officials) would be moving on this sooner than later, but at this point in time I have not heard anything," Murkowski added.

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Feb 04 2017 | 5:42 AM IST

Next Story