Hawley to FERC's Clements: 'Who Were the Donors?' (May 4, 2023)

On May 4, 2023, the Senate Energy and Natural Resources Committee held an oversight hearing on the Federal Energy Regulatory Commission, with all four sitting commissioners as witnesses [1]. FERC’s chairman, Willie Phillips, told the committee that the agency must ensure that “rates for the wholesale sale and transmission of electricity, as well as transportation of oil and natural gas by pipeline, are just and reasonable,” and that “the nation’s bulk power system remains reliable” [1]. Sen. Josh Hawley, a Missouri Republican, used part of his time to question Commissioner Allison Clements, a Democrat, about a briefing she had given early in 2022 at an event hosted by the Energy Foundation, where she had directed the energy markets program for two years before joining FERC in 2020 [2]. This video shows that exchange. Quotes are from the official hearing record, Senate Hearing 118-271 [1].

Key Moments

”Who were the donors?”

“Some emails disclosed last year via a FOIA request showed that you briefed a funders-only session at a left-leaning grantmaking foundation called the Energy Foundation about FERC 2022 priorities,” Hawley said. “Who were the donors who attended that session?” “There was not fundraising in the meeting you ask about,” Clements answered. “It was a convening of foundation staff from across the country and I was having a very straightforward, above-the-board conversation about 2022 priorities. Subject to my ethics agreement and any ex parte restrictions, I have an open-door policy.” “Wait a minute. You said it was staff? The FOIA information says it was advertised as a funders-only session, meaning donors,” Hawley said. “I want to know who the donors are. Who were the donors? Can you get me a list?” “I would be happy to,” Clements said. “I don’t remember specifically, but I would be happy to” [1].

”Almost everyone I speak to”

“Do you think it’s appropriate that you would be giving closed-door briefings to donors?” Hawley asked. “No, and I didn’t do that, sir,” Clements said. “I provide my stump speech on my own FERC priorities to many different kinds of groups.” Hawley asked: “Did any of those donors who were present that day have a financial interest in the energy industry?” “Almost everyone I speak to has a financial interest in the energy industry,” she answered. “Oh, wow,” Hawley said. Clements explained that she also spoke to the boards and chief executives of industry groups representing power suppliers, utilities and interstate pipeline companies, and that, “subject to ethical responsibilities and also my ex parte restrictions, I engage with them” [1].

”A pattern and practice”

“Do you think it is appropriate to speak to advocacy groups at a donors-only session?” Hawley asked. “I think it is appropriate to speak with foundations who are interested in the energy----” Clements began. “To their donor sessions? Wow. Wow. I have to say, I think that is pretty problematic,” Hawley said, describing “what you have now described as a practice—pattern and practice of speaking to donor groups that have financial interests in the industry you are regulating.” “If that is not currently foreclosed by law, we ought to foreclose it,” he told the chairman, Sen. Joe Manchin. “I think I am probably going to need to see a list of all the groups you have spoken to,” he added. “We have members of the executive branch who are buying and selling stock in industries that they regulate and now we have you speaking to donors in industries that you regulate” [1].

Background: The January 2022 Briefing

In October 2022, Fox News reported records obtained by the Institute for Energy Research, an energy policy group, showing that Clements “ultimately agreed to attend the Jan. 10 funder event despite an Energy Foundation official suggesting her presence might be ‘inappropriate.’” A week before the event, an Energy Foundation staff member had emailed FERC staff a schedule that “included a ‘funders only’ portion and a briefing led by Clements and a question and answer session afterwards” [2]. A spokesperson for Clements told Fox that she had “held hundreds of stakeholder meetings during her time on the Commission, including with representatives of utilities, regional grid operators, gas pipeline companies, consumer advocates, NGOs, and trade associations.” The Energy Foundation said it “routinely host[s] briefings for the climate and clean energy philanthropy community to hear from experts in the field” [2].

The Record

The funders-only session. The records Fox described listed a “funders only” portion of the event alongside her briefing, as Hawley said [2].
The list of donors. Clements agreed to provide one. The printed hearing record does not include it, and HYGO News found no public copy [1].

”Catastrophic” Warnings on the Grid

The same hearing produced stark warnings about keeping the lights on. “I think the United States is heading for a very catastrophic situation in terms of reliability,” Commissioner Mark Christie told the committee. “We are retiring dispatchable generating resources at a pace and in an amount that is far too fast and far too great and it is threatening our ability to keep the lights on” [1].

Commissioner James Danly warned of “a looming reliability crisis in our electric markets, which is driven primarily by the effects of state and federal subsidies and FERC’s maladministration of our markets” [1].

What Happened Next

No second term: On February 9, 2024, Clements said she would not seek a second term, Utility Dive reported [3].
Her departure: FERC bade farewell to her at its June 27, 2024, meeting, and her term ended on June 30, 2024 [4].
A full commission: In June 2024, the Senate confirmed three new commissioners, Judy Chang, David Rosner and Lindsay See, restoring FERC to five members [5].