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.