Federal Energy Regulatory Commission
From Wikipedia, the free encyclopedia
The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over interstate electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. FERC also reviews and authorizes liquefied natural gas (LNG) terminals, interstate natural gas pipelines and non-federal hydropower projects.
The Energy Policy Act of 2005 expanded FERC's authority to impose mandatory reliability standards on the bulk transmission system and to impose penalties on entities that manipulate the electricity and natural gas markets. The Energy Policy Act of 2005 gave FERC additional responsibilities as outlined in FERC's Top Priorities and updated Strategic Plan. As part of that responsibility, FERC:
- Regulates the transmission and sale of natural gas for resale in interstate commerce;
- Regulates the transmission of oil by pipeline in interstate commerce;
- Regulates the transmission and wholesale sales of electricity in interstate commerce;
- Licenses and inspects private, municipal, and state hydroelectric projects;
- Approves the siting of and abandonment of interstate natural gas facilities, including pipelines, storage and liquefied natural gas;
- Ensures the reliability of high voltage interstate transmission system;
- Monitors and investigates energy markets;
- Uses civil penalties and other means against energy organizations and individuals who violate FERC rules in the energy markets;
- Oversees environmental matters related to natural gas and hydroelectricity projects and major electricity policy initiatives; and
- Administers accounting and financial reporting regulations and conduct of regulated companies.
[edit] Position within the government
FERC is an independent regulatory agency within the United States Department of Energy. There is no review of FERC's decisions by the President or Congress. All FERC decisions are reviewable by the federal courts. FERC is also self funding. The Commission pays for itself by recovering costs directly from the industries it regulates.
In recent years, the FERC has been promoting the voluntary formation of Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) to eliminate discrimination in access to the electric grid. However since the passage of new energy legislation, it has aggressively developed regulations to implement key provisions of the new law dealing with LNG terminals, electric reliability, Public Utility Holding Company Act repeal, new merger regulations and new anti-market manipulation regulations.
FERC has also been heavily involved in the California electricity crisis and in investigating allegations of electricity market manipulation by Enron and other energy companies. FERC has collected over $6.3 billion from energy companies by facilitating settlements. FERC is also working with Canadian energy officials to facilitate processing of the Alaskan Natural Gas Pipeline, which would bring natural gas from Alaska's North Slope to the lower 48 States.
FERC regulates approximately 1,600 hydroelectric projects in the U.S. It is largely responsible for permitting the construction of a large network of interstate natural gas pipelines. FERC also works closely with the U.S. Coast Guard in reviewing the safety, security and environmental impacts of proposed LNG terminals and associated shipping.
Currently the Commission is chaired by Joseph T. Kelliher. The other members of the Commission include Commissioner Suedeen G. Kelly, Commissioner Philip D. Moeller, Commissioner Marc Spitzer, and Commissioner Jon Wellinghoff.
