There’s a lot to sift through here. First, Wellinghoff directly contradicts President Obama’s pledge to “take control of our energy future” with policies that promote “every source of American energy.” That may not be surprising because, judging by the administration’s
poor record when it comes to supporting energy production, President Obama himself does not support an all-of-the-above energy policy. .
Perhaps more revealing, however, is Wellinghoff’s statement that we should
continue to do away with the “all of the above” energy strategy. In that statement, does he admit that advocates like himself in government positions are closing the door on energy sources they don’t like—namely coal, oil, and natural gas? These are the fuels Americans have chosen for
80% of the energy they use.
Chairman Wellinghoff’s casual mention that he advocates for a specific niche in the energy industry flies in the face of his
mantra that, under his Chairmanship, FERC has remained “
technology neutral.”
Lastly, the problem with Wellinghoff’s advocacy for energy efficiency is that market-driven energy efficiency is so cost-effective, there is no need for FERC or any other government action. Energy efficiency is common sense, and people do it because it makes economic sense, but we doubt that’s what Wellinghoff is talking about. He is talking about
forced energy “efficiency” which is not economically efficient at all. Like many advocates of energy efficiency, he would compel it through brute government strength.
The Rise of the Regulator-Advocate?
As
we explained about the failed nomination of renewables advocate Ron Binz to replace Chairman Wellinghoff, Binz would likely lead FERC further down the anti-energy path Wellinghoff has been forging since 2009, based upon his public statements and well established positions.
President Obama nominated Binz to head FERC just two days after his aggressive
climate speech in late June, in which Obama promised to do all he could to push his climate agenda through regulations in the absence of support in congress for costly new programs. And although FERC is a relatively obscure agency, its impact is significant—the Congressional Research Service conservatively estimated that its economic reach is
$435 billion per year. Given FERC’s reach and Binz’s
history of overreach, IER published
several articles highlighting the problems of promoting a renewables advocate to the head of FERC.
Like Wellinghoff, Ron Binz recently exposed his advocacy roots. In his withdrawal letter to the President, he stressed the importance of favoring “
clean” energy and appeared to side with Wellinghoff’s sentiments on doing away with “all of the above.”
Binz wrote:
“Our nation’s move toward clean energy resources will be much slower without a strong commitment at the FERC to enhance investment in energy infrastructure and to ensure that clean energy resources have full access to electricity markets. It is essential that your next and future appointees to the FERC have that commitment.”
President Obama has yet to announce his next nominee to fill out the five-person Commission. However, with Binz’s failed nomination and Wellinghoff’s departure last Sunday, FERC has a fantastic opportunity to return to its independent regulatory role. In the meantime, existing Commissioner
Cheryl LaFleur is taking over as acting Chairwoman. Notably absent from her
acceptance remarks are any references to specific technologies or outcomes, which makes her point of view a welcome contrast from FERC gavels past.
Conclusion
Wellinghoff’s rejection of the administration’s purported “all of the above” energy strategy highlights the need for pro-consumer and pro-energy groups to pay attention to the off-the-radar regulators like FERC and the people appointed to lead them. In fact, this rare glimpse into the mind of an anti-energy regulator
justifies the efforts of free-market groups in defending an objective approach to energy policy against regulator-advocates like Wellinghoff and Binz.
IER Policy Associates Travis Fisher and Alex Fitzsimmons authored this post