Legal Definitions - Federal Power Commission

The Federal Power Commission, now known as the Federal Energy Regulatory Commission (FERC), is an independent commission within the U.S. Department of Energy. Its main responsibilities include:

• Licensing hydroelectric-power projects
• Setting interstate rates on transporting and selling natural gas for resale
• Setting interstate rates on transporting and selling electricity at wholesale
• Setting interstate rates on transporting oil by pipeline

The FERC was created by the Department of Energy Organization Act of 1977 and is made up of five members. It enforces the Natural Gas Act and succeeded the Federal Power Commission.

For example, if a company wants to build a hydroelectric-power project, they would need to obtain a license from the FERC. The FERC would also set the rates for transporting natural gas or electricity across state lines.