The Federal Energy Regulatory Commission (FERC) is an independent governmental agency in the United States. Originally created in 1977, FERC was established to regulate and oversee the interstate transmission of electricity, natural gas, oil, and the wholesale sales of electricity in the country. FERC's primary objective is to ensure effective and efficient energy markets, where consumers have access to reliable, affordable, and sustainable energy sources.
As a regulatory body, FERC has various responsibilities. It approves and monitors the rates, terms, and conditions of energy services to prevent market manipulation, anti-competitive activities, and ensure fair practices. FERC plays a significant role in licensing and overseeing the construction, operation, and safety of hydroelectric projects in the U.S., promoting the development of renewable energy resources.
Additionally, FERC facilitates the integration and modernization of the energy infrastructure, promoting the use of advanced technologies and grid management techniques. It also oversees the reliability of the bulk power system, working closely with regional entities to maintain grid stability and respond to emergencies.
FERC operates independently from political influence and its decision-making processes follow transparent procedures, where stakeholders and interested parties can participate and voice their concerns. The commission comprises five commissioners, who are nominated by the President of the United States and confirmed by the Senate, serving impartially to enforce federal energy laws and regulations. FERC's actions contribute to shaping the energy landscape in the United States, ensuring a secure and efficient energy market for the benefit of consumers, industry, and the overall economy.
