Supreme Court Overturns Humphrey’s Executor, Upends FERC Commissioner Removal Protections
Energy companies, utilities, and FERC-regulated market participants must track developments because the ruling allows at-will presidential removal of FERC commissioners, undermining the agency's longstanding bipartisan, expertise-driven decision-making.
On June 29, 2026, the Supreme Court issued Trump v. Slaughter, overruling 90-year-old Humphrey’s Executor precedent and holding that for-cause removal protections for independent agency commissioners violate the separation of powers. While the Court did not explicitly rule on FERC, the agency’s identical for-cause removal protections and core executive functions (rulemaking, enforcement, adjudication) align with the FTC structure the Court invalidated. FERC’s recent alignment with executive policy directives, paired with risk of politically motivated commissioner turnover, creates uncertainty for energy infrastructure permitting, market rulemaking, and enforcement actions. Regulated entities should monitor FERC leadership changes and upcoming policy shifts.