About FERC

Mission: Reliable, Efficient and Sustainable Energy for Customers Assist consumers in obtaining reliable, efficient and sustainable energy services at a reasonable cost through appropriate regulatory and market means.

Fulfilling this mission involves pursuing two primary goals:

1. Ensure that rates, terms and conditions are just, reasonable and not unduly discriminatory or preferential.
2. Promote the development of safe, reliable and efficient energy infrastructure that serves the public interest.

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What FERC Does

What FERC Does NOT Do

FERC is an independent agency that regulates the interstate transmission of natural gas, oil, and electricity. FERC also regulates natural gas and hydropower projects. Economic Regulation Transmission and sale of natural gas for resale in interstate commerce; Transmission of oil by pipeline in interstate commerce; Transmission and wholesale sales of electricity in interstate commerce; Administers accounting and financial reporting regulations and conduct of regulated companies, and; Infrastructure Regulation Licenses and inspects private, municipal, and state hydropower projects; Approves the siting of and abandonment of interstate natural gas facilities, including pipelines, storage and liquefied natural gas; and Oversees environmental matters related to natural gas and hydropower projects and major electricity policy initiatives.

Areas considered outside of FERC's jurisdiction are: Economic Regulation Retail electricity and natural gas sales to consumers; Oil company mergers and acquisitions; Regulation of municipal power systems, federal power marketing agencies like the Tennessee Valley; Authority, and most rural electric cooperatives; and Infrastructure Regulation Approval to construct electric generation, transmission, or distribution facilities, except hydropower; Nuclear power plant regulation; Oversight of oil pipeline construction; Abandonment of service related to oil facilities; Pipeline safety or pipeline transportation on or across the Outer Continental Shelf; Regulation of local distribution pipelines of natural gas; and Development and operation of natural gas vehicles.

How the Commission is Appointed
The Federal Energy Regulatory Commission is composed of five commissioners who are appointed by the President of the United States with the advice and consent of the Senate. Commissioners serve five-year terms, and have an equal vote on regulatory matters.

To avoid any undue political influence or pressure, no more than three commissioners may belong to the same political party. There is no review of FERC decisions by the President or Congress, maintaining FERC's independence as a regulatory agency, and providing for fair and unbiased decisions. The Commission is funded through costs recovered by the fees and annual charges from the industries it regulates.

One member of the Commission is designated by the President to serve as Chair and FERC's administrative head.