What is the FERC (Federal Energy Regulatory Commission)

Established in 1977, 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.A predecessor agency, the Federal Power Commission, was founded in 1920 to permit cabinet members to coordinate federal hydropower development.

In 1935, the FPC was reworked into an freelance regulatory agency with 5 members nominated by the President and confirmed by the Senate. At that time the FPC regulated both hydropower and interstate electricity.

In 1938, the Natural Gas Act gave FPC jurisdiction over interstate natural gas pipelines and wholesale sales. In 1942, this jurisdiction was expanded to hide the licensing of more natural gas facilities. In 1954, the Supreme Court decision in Phillips v. Wisconsin extended FPC jurisdicition over each wellhead sales of natural gas in interstate commerce.