The Federal Energy Regulatory Commission (FERC) issued an order on July 3, affirming its increased scrutiny of the ties between investors and public utilities. Of particular concern are the investors who exert control over these utilities through their representation on company boards, or the boards of companies that hold interests in these utilities.
This order was prompted by a request for rehearing of an earlier October 2022 order concerning Evergy Kansas Central Inc. It demonstrates FERC’s commitment to ensuring public utilities function in the broader public interest and are not unduly influenced by private investor mechanisms.
Despite the intricacies involved in these legal procedures, the essential point to glean is that FERC is actively assessing the investor-utility landscape and taking steps to mitigate possibly compromising relationships. The regulatory body’s involvement is an indication of its ongoing commitment to maintain transparency and balance in the public utilities industry.
This increased scrutiny could have significant implications for legal professionals advising corporations on their investment strategies. It should make them keenly aware of FERC’s regulatory purview and ensure their clients’ actions adhere not just to the letter, but also to the spirit, of operating public utilities.