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Federal Energy Regulatory Commission (FERC)
Practical Law Glossary Item 6-508-1007 (Approx. 3 pages)
Glossary
Federal Energy Regulatory Commission (FERC)
An independent federal agency within the Department of Energy established in 1977 pursuant to the Department of Energy Organization Act. FERC, among other things:
- Monitors and investigates energy markets.
- Regulates the transmission and wholesale sales of electricity in interstate commerce. This includes approving rates, terms and condition for among others, investor owned utilities and regional transmission organizations.
- Regulates the transmission and sale of natural gas for resale in interstate commerce.
- Regulates the transmission of oil by pipelines in interstate commerce.
- Ensures the reliability of high voltage interstate transmission lines.
- Oversees environmental matters related to natural gas and hydroelectricity projects and major electricity policy initiatives.
- Licenses and inspects hydropower projects.
- Reviews proposals to build liquefied natural gas terminals.
FERC is comprised of five presidentially appointed commissioners and derives its regulatory authority from several statutes, including the Energy Policy Act of 2005.