The U.S. Federal Energy Regulatory Commission (“FERC”) shares jurisdiction with the states over matters that fundamentally affect investment in critical energy infrastructure. In general, FERC’s policies have favored investment in assets that have the lowest short-term incremental cost, while state policies have tended to take a longer-term view that considers a variety of different factors, including fuel diversity, generation diversity, environmental externalities, energy efficiency, environmental justice, security and sustainability, economic development, affordability and stability of retail rates, global warming emissions, and other public interest considerations. he fundamental disconnect between FERC policy and state priorities has so far been resolved by the federal courts in favor of FERC. Courts have cited the Supremacy Clause of the U.S. Constitution, which requires state policies to yield to FERC in relevant respects. But the federal law preserves to states important energy and environmental responsibilities, and to the extent that federal policy stymies the accomplishment of the states’ legitimate objectives in areas traditionally reserved to them, a more serious, and substantive, conversation should occur.