Warning
Info
Warning
Info
Simple English definitions for legal terms
Federal Energy Regulatory Commission
Read a random definition: perjury-trap doctrine
A quick definition of Federal Energy Regulatory Commission:
Federal Energy Regulatory Commission (FERC) is a group of five people who work for the U.S. Department of Energy. They are responsible for making sure that companies who sell natural gas, electricity, and oil by pipeline charge fair prices. They also give permission for companies to build hydroelectric-power projects. FERC was created in 1977 and replaced the Federal Power Commission.
A more thorough explanation:
The Federal Energy Regulatory Commission (FERC) is an independent commission within the U.S. Department of Energy. It is responsible for regulating and overseeing various aspects of the energy industry in the United States.
FERC has several key responsibilities:
- 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
- Setting interstate rates for transporting oil by pipeline
FERC was created by the Department of Energy Organization Act of 1977 and succeeded the Federal Power Commission as the enforcer of the Natural Gas Act.
For example, if a company wants to build a hydroelectric-power project, they must obtain a license from FERC. FERC will review the project to ensure it meets certain safety and environmental standards before granting the license.
Another example is if a natural gas company wants to transport and sell gas for resale across state lines, they must obtain approval from FERC for the rates they will charge. FERC will review the rates to ensure they are fair and reasonable for both the company and the consumers.