FERC is an independent commission that oversees the interstate transmission and wholesale sale of electricity and natural gas, sets rates and terms for interstate oil and gas pipelines, and licenses hydroelectric projects. It approves the siting of interstate natural gas facilities (including LNG terminals and pipelines) and polices energy markets for fraud and manipulation. Its authority covers utilities, pipeline operators, and power marketers operating across state lines.
A component of Energy Department.
Created by Congress under the Department of Energy Organization Act (Pub. L. No. 95-91; 42 U.S.C. 7171), it acts within the authority that statute grants. Its actions are subject to judicial review and to congressional oversight and funding.