Federal Energy Regulatory Commission

The Federal Energy Regulatory Commission (FERC) is the independent agency of the United States government that regulates the transmission and wholesale sale of electricity and natural gas in interstate commerce and regulates the transportation of oil by pipeline in interstate commerce. FERC also reviews proposals to build interstate natural gas pipelines, natural gas storage projects, and liquefied natural gas (LNG) terminals, in addition to licensing non-federal hydropower projects. FERC is an independent federal agency, even though it is part of the U.S. Department of Energy. FERC is composed of five commissioners who are nominated by the U.S. president and confirmed by the U.S. Senate. There may be no more than three commissioners of one political party serving on the commission at any given time. Primary duties The responsibilities of FERC include the following: Regulating the transmission and sale of natural gas for resale in interstate commerce; Regulating the transmission of oil by pipelines in interstate commerce; Regulating the transmission and wholesale sales of electricity in interstate commerce; Licensing and inspecting private, municipal, and state hydroelectric projects; Approving the siting of and abandonment of interstate natural gas facilities, including pipelines, storage and liquefied natural gas; Ensuring the reliability of high voltage interstate transmission system; Monitoring and investigating energy markets; Using civil penalties and other means against energy organizations and individuals who violate FERC rules in the energy markets; Overseeing environmental matters related to natural gas and hydroelectricity projects and major electricity policy initiatives; and Administering accounting and financial reporting regulations and regulating businesses of regulated companies. Jurisdiction and authorities FERC is a large independent regulatory agency within the United States Department of Energy that participates in business oversight. The President and Congress do not generally review FERC decisions, but the decisions are reviewable by the federal courts. FERC is self-funding, in that Congress sets its budget through annual and supplemental appropriations and FERC is authorized to raise revenue to reimburse the United States Treasury for its appropriations, through annual charges to the natural gas, oil, and electric industries it regulates.