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The IT Law Wiki


The Federal Energy Regulatory Commission (FERC) is an independent, self-funded, regulatory agency within the Department of Energy with statutory authority over major aspects of the wholesale electric, natural gas, hydroelectric, and oil pipeline industries.[1] It

  • Regulates the transmission and wholesale sales of electricity in interstate commerce;
  • Reviews certain mergers and acquisitions and corporate transactions by electricity companies;
  • Regulates the transmission and sale of natural gas for resale in interstate commerce;
  • Regulates the transportation of oil by pipeline in interstate commerce;
  • Approves the siting and abandonment of interstate natural gas pipelines and storage facilities;
  • Reviews the siting application for electric transmission projects under limited circumstances;
  • Ensures the safe operation and reliability of proposed and operating LNG terminals;
  • Licenses and inspects private, municipal, and state hydroelectric projects;
  • Protects the reliability of the high voltage interstate transmission system through mandatory reliability standards;
  • Monitors and investigates energy markets;
  • Enforces FERC regulatory requirements through imposition of civil penalties and other means;
  • Oversees environmental matters related to natural gas and hydroelectricity projects and other matters; and
  • Administers accounting and financial reporting regulations and conduct of regulated companies.
FERC's responsibility for the reliability of the grid and related ratemaking authority allow the Commission to discover issues and authorize utilities to recover the jurisdictional portion of costs related to grid critical infrastructure protection upgrades.[2]


  1. The FERC is the successor to the Federal Power Commission.
  2. The Smart Grid and Cybersecurity: Regulatory Policy and Issues, at 15.