SALT LAKE CITY, UTAH – Attorney General Sean D. Reyes co-led a letter with the State of Indiana to the Federal Energy Regulatory Commission (FERC) to address its policy of providing blanket authorizations for investment companies under Section 203(a)(2) of the Federal Power Act (FPA). The letter from several attorneys general focuses on the legal and ethical responsibilities and duties of asset managers of investment companies that manage investment funds for their clients.
In their letter, the attorneys general note that FERC’s practice for granting company-specific blanket authorizations to asset managers under Section 203(a)(2) must have three critical requirements to achieve the FPA’s pro-competitive and consumer-protection focus. First, asset managers must limit ownership to 20% or less in the company. Second, asset managers must pledge to FERC to function as passive investors for the company. Finally, recipients of blanket authorizations must follow and keep their fiduciary duties to their investors. Adherence to these stipulations would practically eliminate companies’ involvement in ESG organizations and agendas.
“The State of Utah has led the fight to hold asset managers accountable to the rule of law and to their fiduciary duties,” said General Reyes. “We trust FERC will protect American interests from a radical environmental agenda seeking to fundamentally transform entire industries and institutions in dangerous and irresponsible ways. I am grateful for our coalition of AGs and other stakeholders working to safeguard everyday Americans from the excesses of the ESG movement.”
FERC’s statutory duty is to perform due diligence on these authorizations to ensure robust competition among electricity providers and a reliable and affordable electricity supply for consumers and businesses. If FERC does not take its statutory obligations seriously, then unsuspecting Americans would be harmed by anti-competitive actions of large investment companies promoting the ESG agenda. As the letter highlights, the lawful compliance of FERC and asset managers directly affects, not just economic security in each state across the union, but also the health, safety, and welfare of citizens.
Joining Utah and Indiana on this letter were the States of Alaska, Arkansas, Florida, Georgia, Idaho, Iowa, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Dakota, South Carolina, South Dakota, Tennessee, Texas, Virginia, and Wyoming.
