Informed or doesnt inform your approach at ferc. Absolute. Thank you foryo having me and is a pleasure to you today. Yes, i did spend a good chunk of my youth in lexington, kentucky, and obviously had the opportunity to serve the senior senator and party leader from kentucky in the United States senate, senator mcconnell. In terms of how that informs my work at the commission, i cant quantify how much i learned from senator mcconnell just about his work ethic and his discipline and his leadership style, his approach to governance is approach to bipartisanship i think, you knew, in my working for him, most of, if not all of the legislative initiatives that ieg worked on, it didnt pass the senate with 60 votes. They pass with 85 plus votes. Oftentimes, and were talking substantial legislation on the energy front, on the Infrastructure Sector multiple. Farm bills, multiple highways built. Hes a consequential pieces of hgislation, and i saw how senator mcconnell worked to bridge the interests of kentucky ends with a diverse array of folks within his own conference in the senate as well as across the senate. Ultimately a number of these deals were cut while president obama was in the white house as we had to ensure that legislation could clear both chambers and be signed by the president. That experience prepared me well for my role at the commission. However, that said, i also have a keen understanding im in a different job today, and serving as an independent Regulatory Agency where its incumbent that we view issues in a nonpartisan, neutral, technical way. I think that is important, and that is a distinction and ill be the first to admit, as with any transition into a job, it took me a while to make that transition from partisan legislative aide to independent regulator. I think the clearest example of that, i had spent nearly a decade with senator mcconnell advocating for the interests of kentuckians, and obviously in kentucky, cold, coalfired generation is central to kentuckys economy, to its culture. And so when i first came to the commission, one of the issues initiallyre confronted with wasas a proposal from the department of energy, a proposed rulemaking to compensate coal and Nuclear Plants for having the attribute of t onsite fuel. When i say transitions are difficult here, i am a kentuckian who worked on these policy issues for senator mcconnell and initially, instinctively, once Natural Inclination is i want to do something to help the people i care about. But in making that transition to independent regulator, i take very seriously that in this new role we have to abide by the record before us and by the evidence. As difficult as it was for me to swallow personally, that i could not do something to help the communities that i care about, at the end of the day the record that was before us in the proceeding did not justify the action that d. O. E. Was asking us to take, and we made the decision unanimously to set aside that proceeding and open a new one. And i think that experience, while challenging, thrusting us and that was a good one for really throwing in the defense and showing me that i had to, in a very quick fashion, make that transition from partisan legislative aide to independent regular. So the same time the commission rejected that proposal you opened up a docket on great proposal. Give us a sense on where that stands, where the conversation stands. There are legitimate issues around Grid Resilience. Give us also a sense of some of the greatest risks the great faces and what your role is in trying to communicate those risk. An excellentnt question. The questions that were posed by the d. O. E. , nrp did not, the record didre not support thet action that was taken. The question of Grid Resilience, of what our the attributes of ai resilient grid, what do we need to focus on and value, what, if any, potential threats to resilience are there . These are real questions. What weve been carefully doing, my colleagues and i come the staff of the commission, he is pouring through the record which we have to take which is far more robust than we had in the fall of 2017 when the d. O. E. Was proposed. What we need to first do and it seems simplistic on his face but we need to define what we view resilience to be. It is a question specifically asked in opening a new proceeding and we have received numerous comments on it. I think thats the first determination that needs tona be made. What constitutes Grid Resilience. This isnt something i think with the polarizing or partisan or not fuelfe neutral. But i think also theres a two defining what Grid Resilience is. Once we make that determination of what constitutes Grid Resilience with enough to evaluate, is there in fact, any sort of threat shortterm or longterm to the resilience of the grid works if we determine there is or isnt, what steps to take from there . I know its taken a long time. I hope that we will be able to proceed with the docket soon and in short order, and i think we will do it in a thoughtful, deliberative, evidencedbased way. And i have complete confidence in my colleagues and team at the commission that we will be able to handle this complex subject. Any advanced insight on what you arean seeing in terms of comments or other factors that we do see, some of the biggest essk are, or concerns are . Some of the challenges that we are seeing throughout this proceeding and others, the Energy Transition we are seeing in this country has been remarkable, i think has provided tremendous benefit for consumers, forth the environmen. We been able to maintain grade reliability and security. But we need to understand whatty the implications of these changes are. One of the things we are seeing is the increased interdependence of gas and the power sector is one that we need to be cognizant of. 0 20 years ago, if a gas pipeline was interrupted, generator might not have even flinched. Today, you might have eight or nine generators, depending on a single gas pipeline, and anha outage could have significant consequences. And so understanding where these kinds of potential dynamics, how the impact the reliability and security of the grid is important and its a worthwhile question to look at. Ive been pleased to see the action that is been taken by some of the rtos and isos did you indepth fuel security analyses of their own systems. And again this isnt something that is political or based on putting a thumbn on the scale from one fuelon source or anoth. These are very technical, sober minded, indepth looks in the systems. At a think thats a valuable exercise. Does cybersecurity enter into this particular conversation or does it show elsewhere in fercs deliberation . Cybersecurity i think is something that is unfortunately we all have to contend with now on a much more serious level. I mentioned the tremendous benefits of the Energy Transition and of technologicala innovation. But that innovation comes with a downside risk, and that is that we are increasingly vulnerable to cyber and physical attack, and that is something that with commission take veryso seriousl. In the past couple of years weve taken some significant steps to address this. Looking at supply chain risks, looking at reported entities and making sure that attempted intrusions and intrusions are reported to the appropriate bodies. But we can always do more and we have to remain vigilant. We have an office of Energy Infrastructure security at the commission that goes beyond some of the standards that we have in place working with our partnersr at nerc. I think standards are very much the floor, not the ceiling of what we need to go to stay ahead of ourea adversaries, and i thik our offices work with our state and federal partners and the regulated community to stay ahead of these evolving threats. There some other areas that ive highlighted. For instance, we at the commission have the responsibility to certificate Natural Gas Pipelines but we dont have any authority over the security. That falls to the department of homeland security, specifically to the tsa. Andec weve engage in pretty aggressive dialogue with tsa. I that direct conversations with the da tsa administrator to ensure a are taking appropriate steps and putting the appropriate focus and seriousness on the threat of a physical or cyber attack on her infrastructure. What are the key roles that ferc place at the federal agency but involves in interstate Energy Commerce working with states . And that at times, conflicts isnt a good word but can lead to challenges, and in particular, many states have Different Energy and a mental policies, which then with the apply to the power sector intersect with the powered markets. And so for many states can for example, opacity markets is one place we could have a little bit of the conversation. Particularly in pjm, also some extent in new york iso, theres been a conversation and deliberations around capacity markets,ap something called minimal offering price will come how they compete in this capacity markets. Just last week there was a letter that you received from ten Democratic Senators expressing concern about fercs role in potentially not allowing certain or putting rules about how certain clean energy supported sources participate in those markets. They estimated or theres been, they have cited estimates this could cost consumers seven dollars per year. The question is, this is an area of ongoing backandforth, give us a sense of fercs role in ensuring the integrity of markets but at the same time accommodating statelevel desires. Obviously very important and significant question. I have to be very careful in how i answer it because it is a painting contested matter before us and i will be clear that while theres been some speculation about what the ultimate order may look like because of our stringent export a communication rules, all of that is speculative x partake. Ou without getting into the specific matters before, the question of this collisionat between states rights and function markets, its a challenging one. I believe fundamentally in states rights and the ability of states and local governments to make decisions about their own Energy Futures also really want these markets to succeed because i genuinely believe that we are seeing benefits economically the consumers, but also to the environment from e these markets. We want them to function. When states make Public Policy decisions regarding their own resource mix, that have implications in other states that may not share the same Public Policy goals, it creates challenges within our markets. But these are not insurmountable challenges adages want to cite u couple examples that go outside of the pending contested matter we have before us. In iso new england in 2018, the Commission Approved an order on a kasper case in which the states came together and work both independently and collectively to try and see how their myriad state policies could be supported but also not disrupt the benefits that we were seeing in the regional market. And ultimately with some conditions, ferc was able to accept the submission from iso new england. I think that was an example of where i really want to applaud the states for the way that the engaged with stakeholders. They engaged with each other and found a way to try and find that delicate benefit in that market. Similarly, you look at the energy and balance market west where the core idea behind forming that vim is the gutter greater pool of supply to address demand, ultimately consumers would see the benefit. Were talking about a wide array of states totally diverse resource portfolios ranging from high amount of wind and solar hydro to call. And again, to call. States demonstrated, worked collectively together. We are seeing some estimates ,that the savings to consumers seven upwards of 650 million in the eim. And also towards decolonization weve seen a reduction in Carbon Emissions in the west as a result of thehe collaboration tt is taking place in the eim. Thats my longwinded way ofhe saying these are complex challenges when youre dealing with diverse states, with diverse resource mixes, and different governmental dynamics within them. I think its important that these markets function, that we try we can to adapt state policies but we have to ensure that the markets function. One of the options that now, theyre starting conversations, deliberations aroundd particularlys theres an exampe in new york that certain states or areas that have capacity markets may, in fact, remove the capacity market, just do away with the capacity market, and then take over the function of Resource Adequacy back at the state level with the public utility commission. Basically taking the current conflict and opting out. Do you have any thoughts or advice . I guess thats one way to ameliorate the interstate challenge, but i think, again, i dont want to get too far ahead of myself and say what may come before us. I will note a least one of my colleagues, commissioner glick, like in sight cite to him, hes been out there questioning whether the utility capacity markets and whether im paraphrasing, i dont know his exact statements, but hes kind of raised this question, i think it is a question that is taking place in some circles with a capacity markets are delivering what was envisioned andts intended. I just come back to again my belief in markets and how i want these markets to succeed. But we are clearly coming to a point where different states are taking actions for different reasons, and those are having an impact on the markets and its something were struggling with. A related issue that is currently occurring in new york state with the independent system operated there is the notion t of a carbon added. The id you can incorporate into the wholesale market itself something that is reflective of the extra nelson sosa with Carbon Dioxide emissions and thereby reconcile the desire for Clean Energy Sources which is currently done through things like renewable portfolio standard 40 emission credits, do that through a more comprehensive carbon adder to ameliorate some of the oallenges that have arisen and so on with the markets. Do you have aci few as new yorky the states might consider that approach to reconcile this desire for clean Power Sources, at the same thing doing it in aa way that works in the marketplace . Again, i do want to speculate on something that could come before the commission. I dont want to prejudge anything that may come before the commission so i cant speak to that. Okay. So related to this, talk a little bit about Climate Change. So youre on the record as expressing serious concern about Climate Change. Give us a sense of how you feel fercs role in the challenge relative to other institutions. So i think at the commission we are not an environmental regulator we are a market regulator. And i think, in my view as somebody who is concerned about Climate Change and police we need toge mitigate emissions, i believe that marketbased solutions are the key to achieving those carbon reductions. And i think that is borne out by the evidence that weve seen, where in our power markets, and we just look at the state of our power markets, federal capandtrade was never passed through congress. Federal carbon tax was never passed through congress. The Clean Power Plan was stayed by the courts, and the administration told the u. S. Out of pairs climate records. And yet we see power sector Carbon Emissions are on the decline. E. And i think that is the result not of Government Policies but if market forces, of consumer demands, and market efficiencies. Ive been out there saying that there is a real Business Case to be made for Renewable Energy. And i think that Renewable Energy, as advocates have long touted, is at a point now where it is competitive on its own, renewals are competitive on their own without the necessary backing of government subsidies or Government Policies. When you look at markets, and over the course of time you have one source of generation that has no fuel cost, thats going to win out over the course of time over an alternative that has a fuel cost. To answer your question, the role that ferc can play is in creating a regulatory ecosystem that enables these new technologies to flourish, and by breaking down barriers to entry for those technologies. One of the measures that we moved to the commission in the past year im very proud of is our rule 841 re Battery Storage. Removing barriers to entry and competition for storage resources so they can become city for all of the attributes that they provide to the system, and i think we may look back five years of now, ten years fm now, that might be a seminal moment in our course to mitigate Carbon Emissions. Generally it has a capacity fundamentally alter our Energy Landscape and could answer the key reliability question surrounding the intermittency of renewables. And i think that order, enabling storage resources to compete, was the perfect example of how a market regulator like ferc can play significant role in mitigating Carbon Emissions. We currently have a rulemaking we are working on that would similarly look at distributed Energy Resources, similarly removing obstacles to competition to ensure that aggregated dtrs could be compensated for their attributes. And i thinknk those types of marketbased approaches to allowing new technology to thrive are, in my view, how we can play significant role in mit