Federal Energy Regulatory Commission

The Federal Energy Regulatory Commission (FERC) is an independent agency of the United States government that helps manage important energy resources. It looks after the movement and sale of electricity, natural gas, and petroleum across state lines. FERC makes sure these energy products are moved safely and fairly.

FERC also checks plans for building new natural gas pipelines and storage areas. It also gives approval for projects that create power using water, but are not run by the government.

The commission was started in 1977 by the U.S. Congress. Even though it is part of the U.S. Department of Energy, it operates on its own. FERC is led by five commissioners. The U.S. president chooses them, and the U.S. Senate must agree. No more than three commissioners can be from the same political group at the same time.

Primary duties

The Federal Energy Regulatory Commission (FERC) helps manage how energy moves and is sold between states. It makes sure natural gas, oil, and electricity can travel safely between states and checks new energy projects like pipelines and power plants. FERC also works to keep the electric grid strong and reliable, watches over energy markets, and makes sure companies follow the rules. It handles environmental reviews for big energy projects and oversees financial reports for energy businesses.

FERC’s job includes:

• Regulating the transmission and sale of natural gas for resale in interstate commerce;
• Regulating the transmission of oil by pipelines in interstate commerce;
• Regulating the transmission and wholesale sales of electricity in interstate commerce;
• Licensing and inspecting private, municipal, and state hydroelectric projects;
• Approving the siting of and abandonment of interstate natural gas facilities, including pipelines, storage and liquefied natural gas;
• Ensuring the reliability of high voltage interstate transmission system;
• Monitoring and investigating energy markets;
• Using civil penalties and other means against energy organizations and individuals who violate FERC rules in the energy markets;
• Overseeing environmental matters related to natural gas and hydroelectricity projects and major electricity policy initiatives; and
• Administering accounting and financial reporting regulations and regulating businesses of regulated companies.

Jurisdiction and authorities

FERC is a big independent regulatory agency that helps watch over important business in the United States. It is part of the United States Department of Energy, but it works mostly on its own. The President and Congress usually don’t change FERC’s decisions, but these decisions can be checked by federal courts.

FERC helps make sure everyone can get electricity fairly by supporting groups that manage power in different areas. It has made choices to improve how power is planned and paid for. FERC looks into problems in the electricity market. It also oversees many hydroelectric projects and helps approve plans for natural gas pipelines, working with the United States Coast Guard to keep these projects safe.

Commissioners

FERC can have up to five commissioners. The President chooses them, and the Senate approves them for five-year terms. One commissioner is picked by the President to be the chairman, or leader, of FERC. FERC needs to have members from both political parties, but no more than three can be from the same party. Sometimes, a commissioner stays longer until a new one is approved.

The commissioners as of October 27, 2025 are:

Past commissioners

Chairperson

History

Federal Power Commission

The Federal Power Commission (FPC) was created in 1920 to help manage hydropower projects. In 1935, it became an independent group with five members chosen by the President and approved by the Senate. The FPC was in charge of hydropower and electricity across states.

Natural Gas Act of 1938

In 1938, a law called the Natural Gas Act let the FPC control natural gas pipelines between states and sales of natural gas. Later, its powers grew to include more gas facilities. In 1954, a court decision let the FPC control all sales of natural gas from wells between states.

Birth of DOE; FPC Becomes FERC

Because of the 1973 oil crisis, Congress made a new law in 1977. This created the Department of Energy but also kept an independent group called the Federal Energy Regulatory Commission (FERC). FERC’s main job was to check if electricity prices were fair and to fix them if needed. It also took on some jobs from the Department of Energy and started controlling oil pipelines between states.

Order Nos. 888 and 889

In 1996, FERC made a rule called Order No. 888. This rule helped create groups called regional transmission organizations to manage electricity across big areas. Another rule, Order No. 889, made sure these groups shared information so everyone could buy and sell electricity easily.

Order No. 2003

In 2003, FERC made a rule called Order No. 2003. This rule helped make it easier for new power plants to connect to the electricity grid and paid them back for the costs over time.

Energy Policy Act of 2005

In 2005, a new law gave FERC more power. It let FERC make rules to keep the electricity system safe and to punish people who tried to cheat in the markets for electricity and natural gas. It also let FERC help build new power lines in some places.

Order No. 1000

In 2010, FERC made a rule called Order No. 1000. This rule asked groups that manage electricity to make plans for new power lines and to share the costs fairly.

Order No. 841

In 2018, FERC made a rule called Order No. 841. This rule let storage systems, like batteries, join the markets for buying and selling electricity. Some people disagreed, but a court said the rule was okay.

Order No. 2222

In 2020, FERC made a rule called Order No. 2222. This rule let things like batteries and programs that save energy join the markets for electricity.

Order No. 2023

In 2023, FERC made a rule called Order No. 2023. This rule changed how new renewable energy projects connect to the big electricity grid. It helped make the process fairer and faster.

Order Nos. 1920 and 1977

In 2024, FERC made two new rules. One helps plan for future electricity needs and lets states work more with companies. The other makes sure FERC can build important power lines even if a state says no. It also adds rules to help protect the environment and work with local communities.

Criticism

FERC has faced criticism from communities affected by its decisions on pipelines and other projects. Some people believe FERC approves too many projects and may be biased because its funding comes from the industries it regulates. Critics have disrupted FERC meetings and protested outside its headquarters.

Courts have generally supported FERC’s decisions. In one case, a court said pipeline companies usually only apply for projects that make sense for them financially, and this does not mean FERC is biased. Another court case dismissed claims that FERC’s funding structure makes it favor industry, stating FERC does not control its own budget.

In New Jersey, FERC’s approval of a pipeline called PennEast drew strong opposition from environmental groups, who felt the decision was unfair. However, a court later rejected these claims, saying FERC did not unfairly favor the pipeline company.

FERC leaders encourage people to share their opinions during public comment periods when new projects are proposed, as decisions can be challenged in court up to the Supreme Court.

Federal versus state authority

In some areas, like New York State, both state authorities and FERC have a say in planning big power projects. This can lead to disagreements about who has more control. For example, large power plants or transmission lines must go through reviews by both state boards and FERC. This dual process can sometimes cause delays, as different groups may use legal ways to slow things down. These disagreements also happen when decisions about wholesale electricity prices could affect prices that state customers pay.