On April 14, 2023, the U.S. Supreme Court issued an opinion that is expected to result in historic changes to the Federal Energy Regulatory Commission’s (FERC) use of in-house administrative law judges (ALJs). In Axon Enterprise, Inc. v. Federal Trade Commission, et al., (Axon), the Court unanimously held that federal district courts may hear constitutional challenges to regulatory enforcement actions taken by federal agencies before final agency adjudication. While the Court’s holding in Axon applies to the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC), it is expected to be applied in two active cases concerning FERC.
