What is the Federal Energy Reulatory Commission?

What is the Federal Energy Regulatory Commission?

The Federal Energy Regulatory Commission, also known as FERC is an independent government agency, officially organized as part of the Department of Energy.
FERC is responsible for regulating the interstate transmission of natural gas, oil, and electricity. What that means is that FERC makes sure that natural gas, oil and electricity are transported from state to state in a way that complies with the law.
FERC regulates the wholesale sales of electricity and oil. It sets the charges for the cost of transport of natural gas but it does not regulate the wholesale or retail cost of natural gas. The individual States are free to regulate retail sales of electricity and oil, but not natural gas.
FERC also licenses and inspects hydroelectric projects and approves the construction of interstate natural gas pipelines, storage facilities, and Liquified Natural Gas Terminals.
The Commission's headquarters is located at 888 First Street, NE, in Washington D.C. FERC also has regional offices in Atlanta, Chicago, New York, Portland, and San Francisco.
FERC also protects the public and energy customers. It monitors the energy markets and conducts investigations to ensure that energy companies are acting within the law.

The Commission is composed of five members who are appointed by the President of the United States, with the advice and consent of the Senate.
Commissioners serve five-year terms, and have an equal vote on regulatory matters. Pat Wood III, pictured above, is a FERC commissioner.
To insure independence from undue political influence, no more than three members of the Commission may belong to the same political party.
Since there is no review of FERC’s decisions by the President or Congress, the Commission is insulated from pressure by the branches of government. This is what makes it an independent regulatory agency.
FERC is further protected from outside influence through self-funding. The Commission pays for itself by recovering costs directly from the industries it regulates through fees and annual charges.
By shielding FERC from outside pressures and influence, investors and consumers can be assured that the regulatory process and decisions are fair and in the public’s best interests.
The above information is courtesy of the Federal Energy Regulatory Commission. Visit their well written and informative site at www.ferc.fed.us by clicking on the underlined text.
Visit the Student section to learn more about FERC and everything it does. Read about your rights if you are a property owner affected by a FERC approved project by visiting the Citizens section.