"An independent agency that regulates the interstate transmission of electricity, natural gas, and oil. FERC also reviews proposals to build liquefied natural gas (LNG) terminals and interstate natural gas pipelines as well as licensing hydropower projects. The Energy Policy Act of 2005 gave FERC additional responsibilities[:] Regulates the transmission and sale of natural gas for resale in interstate commerce; Regulates the transmission of oil by pipeline in interstate commerce; Regulates the transmission and wholesale sales of electricity in interstate commerce; Licenses and inspects private, municipal, and state hydroelectric projects; Approves the siting of and abandonment of interstate natural gas facilities, including pipelines, storage and liquefied natural gas; Ensures the reliability of high voltage interstate transmission system; Monitors and investigates energy markets; Uses civil penalties and other means against energy organizations and individuals who violate FERC rules in the energy markets; Oversees environmental matters related to natural gas and hydroelectricity projects and major electricity policy initiatives; and Administers accounting and financial reporting regulations and conduct of regulated companies.

Many areas outside of FERC's jurisdictional responsibility are dealt with by State Public Utility Commissions."

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