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Law360 (March 19, 2020, 6:27 PM EDT) -- The Federal Energy Regulatory Commission will provide some regulatory flexibility as the electricity and pipeline industries grapple with coronavirus-related restrictions, but Chairman Neil Chatterjee said Thursday that the agency won't delay orders on matters before it.
FERC said Thursday it's taking several steps to respond to the COVID-19 pandemic and its impacts on the agency's work. That includes offering extensions for certain required filings that are due by May 1, mulling further filing extensions and waivers of FERC orders, regulations and other requirements on a case-by-case basis and postponing some previously scheduled enforcement proceedings.
But on a conference call the same day — scheduled after FERC canceled its monthly open meeting and has largely closed its Washington, D.C., headquarters — Chatterjee threw cold water on a suggestion from fellow Commissioner Richard Glick that FERC hold off on issuing initial orders on matters unless the agency is legally required to do so by a certain time or the matter is essential.
"Of course we'll be flexible, but I think FERC pausing action right now would not be good for the economy, and the last thing the industry needs now is delays," Chatterjee said.
Chatterjee said the handful of orders FERC issued Thursday, including the approval of a controversial liquefied natural gas export project and a proposed revamp of the agency's electricity transmission incentive policies, shows that FERC can function even if the commissioners and staff are all working remotely.
In a statement suggesting that FERC proceed "judiciously over the next several months on orders that are not statutorily mandated, Glick noted that both the Federal Power Act and Natural Gas Act only give parties 30 days to seek rehearing of FERC orders.
"To the extent commission action is not statutorily required or needed in the short term, I believe we should refrain from acting to allow parties who are otherwise dealing with the pandemic to avoid putting resources toward seeking rehearing of a commission order," Glick said.
Glick later told Law360 that FERC should focus on issuing rehearing orders "as quickly as we can regardless of COVID-19."
Still, Chatterjee wasn't enthusiastic about the idea of delaying orders, even if they're nonessential.
"The energy bar should largely be able to telework, as is most of the commission," Chatterjee said Thursday. "Delaying commission action wouldn't be fair to those who have been waiting for initial orders or orders on rehearing."
While FERC is granting extensions for companies to make certain filings originally due by May 1, there's one notable exception: FERC Form No. 6, which provides the financial and operational information of oil and liquids pipelines whose rates are regulated by FERC.
The agency uses the information for its five-year review and setting of the oil pipeline index rate, which allows pipeline companies to increase their rates subject to caps based on an adjusted index of industrywide cost changes instead of making formal rate increase applications with FERC.
The next five-year review takes place this year, and April remains the deadline for Form No. 6 submissions, Chatterjee said Thursday.
--Editing by Orlando Lorenzo.
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