FERC performance report and budget request

A U.S. energy regulatory agency has published a report detailing its fiscal year 2017 performance and requesting an appropriation of $369,9000,000 in funds from Congress for fiscal year 2019, to be offset by fees on regulated industries.

The Federal Energy Regulatory Commission or FERC is an independent regulatory agency, housed within the U.S. Department of Energy. The Commission has statutory jurisdiction over many aspects of the nation's wholesale electricity, natural gas, hydropower, and oil pipeline sectors. 

FERC's FY 2019 Congressional Performance Budget Request / FY 2017 Annual Performance Report describes the Commission's mission assisting consumers in obtaining reliable, efficient, and sustainable energy services at a reasonable cost through appropriate regulatory and market means. It recites the Commission's 3 goals: ensuring just and reasonable rates, terms and conditions; promoting safe, reliable, secure and efficient infrastructure; and mission support through organizational excellence.

The Commission recovers the full cost of its operations through annual charges and filing fees assessed on the industries it regulates as authorized by the Federal Power Act (FPA) and the Omnibus Budget Reconciliation Act of 1986, which requires it to “assess and collect fees and annual charges in any fiscal year in amounts equal to all of the costs incurred . . . in that fiscal year.” This revenue offsets the Commission's appropriation, resulting in a net appropriation of zero.

The report projects a FY 2019 appropriation of $369,900,000 "for necessary expenses of the Federal Energy Regulatory Commission to carry out the provisions of the Department of Energy Organization Act." This represents an increase of $2,300,000, or about 0.6%, over the Commission's FY 2018 budget request. The report describes its activity as requiring 1,465 full-time equivalents (FTEs) to execute its mission in FY 2019.

What federal shutdown means for energy

With Congress's failure to pass a budget, today the U.S. federal government entered shutdown mode.  For 800,000 federal workers, shutdown means being furloughed until Congress resolves the budget.  What does the shutdown mean for the energy sector?

Each federal agency is reacting differently to the shutdown.  For the Federal Energy Regulatory Commission, it means continued normal business operations - as long as it still has funds on hand.  What happens after that?  According to a contingency plan issued last week, when those funds run out, FERC will continue "only those excepted activities authorized by law" to the extent that they protect life and property.  These activities include the work of the Commissioners themselves, hydroelectric and liquefied natural gas inspections, managing the reliability of the nation's electric and gas systems, and monitoring market operations.

The U.S. Department of Energy faces similar impacts from the shutdown.  It has some funds remaining on hand, but when those funds run out, according to its "lapse in appropriations plan", of its 13,814 employees, only 1,113 excepted personnel and 11 Presidentially-appointed and Senate-confirmed employees will remain on the job.

The Bureau of Ocean Energy Management will continue some operations.  According to its contingency plan, between 35 – 40% of Bureau employees will continue to report for full time duty, and BOEM will continue to work on current offshore wind projects and other renewable energy plans.