The Federal Energy Regulatory Commission (FERC) consists of five individuals employed by the U.S. Department of Energy. Their primary role is to ensure that companies selling natural gas, electricity, and oil through pipelines adhere to fair pricing practices. Additionally, FERC grants authorization for the construction of hydroelectric-power projects. Established in 1977, FERC took over the responsibilities of the former Federal Power Commission.
The U.S. Department of Energy houses the Federal Energy Regulatory Commission (FERC), an autonomous commission responsible for regulating and supervising various aspects of the energy industry in the United States. FERC’s duties include licensing hydroelectric-power projects, setting interstate rates for transporting and selling natural gas for resale, setting interstate rates for transporting and selling electricity at wholesale, and setting interstate rates for transporting oil by pipeline. FERC was established by the Department of Energy Organization Act of 1977 and replaced the Federal Power Commission as the enforcer of the Natural Gas Act. FERC ensures that companies comply with safety and environmental standards before granting licences for hydroelectric-power projects. Additionally, natural gas companies must obtain approval from FERC for the rates they will charge when transporting and selling gas for resale across state lines. FERC reviews the rates to ensure they are equitable for both the company and the consumers.
FERC is responsible for regulating the interstate transmission of electricity, natural gas, and oil, as well as reviewing and approving proposals for new energy infrastructure.
FERC’s regulations and oversight can impact energy prices by influencing the cost of transmission and infrastructure development, which can ultimately affect consumer prices.
Yes, FERC has the authority to regulate the transmission and sale of electricity generated from renewable sources, such as wind and solar power.
FERC works to ensure the reliability of the energy grid by overseeing the development and implementation of mandatory reliability standards for the transmission and distribution of electricity.
FERC considers environmental impacts when reviewing proposals for new energy infrastructure, and may require developers to mitigate any adverse effects as a condition of approval.
Yes, parties affected by FERC decisions can appeal to the federal courts if they believe FERC has acted unlawfully or inappropriately.
FERC works to promote competition in the energy market by overseeing wholesale electricity markets and ensuring that they operate in a fair and transparent manner.
FERC has authority over the siting, construction, and operation of interstate natural gas pipelines, and reviews proposals for new pipelines to ensure they are in the public interest.
Yes, FERC has the authority to investigate and take enforcement actions against energy companies that violate its regulations, including imposing fines and penalties.
FERC works closely with state regulatory agencies to coordinate on energy policy and regulation, particularly in areas where federal and state jurisdiction overlap.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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