The Federal Energy Regulatory Commission (FERC) is an independent agency of the United States government that regulates the interstate transmission and wholesale sale of electricity and natural gas and the prices of interstate transport of petroleum by pipeline. FERC also reviews proposals to build interstate natural gas pipelines, natural gas storage projects, and liquefied natural gas (LNG) terminals, in addition to licensing non-federal hydropower projects.
FERC was created in 1977 by the U.S. Congress in the aftermath of the 1973 oil crisis. It is an independent agency, despite being part of the U.S. Department of Energy. It is headed by five commissioners who are nominated by the U.S. president and confirmed by the U.S. Senate. There may be no more than three commissioners of one political party serving on the commission at any given time.
Primary duties The responsibilities of FERC include the following: 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 large independent regulatory agency, within the United States Department of Energy, that participates in business oversight. The President and Congress do not generally review FERC decisions, but the decisions are reviewable by the federal courts. FERC is self-funding, in that Congress sets its budget through annual and supplemental appropriations and FERC is authorized to raise revenue to reimburse the United States Treasury for its appropriations, through annual charges to the natural gas, oil, and electric industries it regulates.
FERC is independent of the Department of Energy political structure because FERC activities "shall not be subject to further view by the Secretary [of Energy] or any officer or employee of the Department".42 U.S.C. § 7172(g) The Department of Energy can, however, participate in FERC proceedings as a third party.
FERC has promoted voluntary formation of regional transmission organizations (RTOs) and Independent System Operators (ISOs) to eliminate the potential for undue discrimination in access to the electric grid; it has made key decisions expanding its own power in regional and interregional transmission planning and cost allocation through the landmark Order Nos. 1000, 1920, 1977, and 2023.
FERC investigated the alleged manipulation of electricity market by Enron and other energy companies, and their role in the California electricity crisis. FERC has collected more than $6.3 billion from California electric market participants through settlements. Since passage of the Energy Policy Act of 2005, FERC has imposed, through settlements and orders, more than $1 billion in civil penalties and disgorgement of unjust profits to address violations of its anti-market manipulation and other rules.
FERC regulates approximately 1,600 hydroelectric projects in the U.S. It is largely responsible for permitting construction of a large network of interstate natural gas pipelines. FERC also works closely with the United States Coast Guard to review the safety, security, and environmental impacts of proposed LNG terminals and associated shipping.
Commissioners FERC is composed of up to five commissioners who are appointed by the President and confirmed by the Senate to staggered five-year terms. The President appoints one of the commissioners to be the chairman of FERC, the administrative head of the agency. FERC is a bipartisan body; no more than three commissioners may be of the same political party. Commissioners may continue in office past the end of their term if a successor has not yet been confirmed, up to the end of the current session of Congress.
The commissioners are:
Position Name Party Took office Term expires Chair Republican Commissioner Democratic Commissioner Republican Commissioner Democratic Commissioner Republican
Past commissioners Commissioners Years servedDon S. SmithDecember 13, 1973 – June 30, 1979 (Served as FPC)Charles B. Curtis August 10, 1977 – December 31, 1980Georgiana SheldonAugust 11, 1977 – July 19, 1985Matthew Holden Jr. October 28, 1977 – August 31, 1981George R. HallOctober 28, 1977 – May 8, 1981J. David HughesSeptember 8, 1980 – July 13, 1984C.M. Butler IIIJune 5, 1981 – October 7, 1983Anthony G. SousaSeptember 1, 1981 – July 30, 1988Oliver G. Richard IIIAugust 31, 1982 – July 12, 1985Raymond J. O'ConnorNovember 10, 1983 – January 31, 1986Charles G. StalonJuly 14, 1984 – November 10, 1989C.M. NaeveNovember 4, 1985 – April 30, 1988Charles A. TrabandtNovember 4, 1985 – March 31, 1993Martha O. HesseOctober 6, 1986 – November 28, 1989Jerry J. LangdonOctober 4, 1988 – June 5, 1993Elizabeth Anne MolerOctober 7, 1988 – June 16, 1997Martin L. AlldayNovember 13, 1989 – October 20, 1993Branko TerzicOctober 20, 1990 – May 24, 1993James J. HoeckerMay 20, 1993 – January 18, 2001Donald F. Santa Jr.May 20, 1993 – June 30, 1997William L. MasseyMay 20, 1993 – December 9, 2003Vicky A. BaileyMay 20, 1993 – January 28, 2000Curtis L. Hebert Jr.November 14, 1997 – August 31, 2001Linda Key BreathittNovember 13, 1997 – November 22, 2002Patrick H. Wood IIIJune 5, 2001 – July 8, 2005Nora Mead Brownell June 12, 2001 – July 21, 2006Joseph T. Kelliher November 21, 2003 – March 13, 2009Suedeen G. KellyNovember 24, 2003 – December 24, 2009Marc Spitzer July 21, 2006 – December 14, 2011Jon Wellinghoff July 31, 2006 – November 24, 2013Philip D. MoellerJuly 24, 2006 – October 30, 2015John R. NorrisJanuary 11, 2010 – August 20, 2014Cheryl LaFleur July 13, 2010 – August 30, 2019Tony Clark June 15, 2012 – September 30, 2016Norman Bay August 4, 2014 – February 3, 2017Colette D. HonorableJanuary 5, 2015 – June 30, 2017Robert Powelson August 10, 2017 – August 10, 2018Kevin J. McIntyre December 7, 2017 – January 2, 2019Neil Chatterjee August 8, 2017 – August 30, 2021Richard Glick November 29, 2017 – January 3, 2023Bernard L. McNamee December 11, 2018 – September 4, 2020James DanlyMarch 30, 2020 – January 3, 2024 Allison ClementsDecember 8, 2020 – June 30, 2024 Willie L. PhillipsDecember 3, 2021 – April 22, 2025 January 4, 2021 – August 8, 2025
Chairperson Chairmen Years servedCharles B. Curtis October 1, 1977 – January 1, 1981Georgiana Sheldon (Acting) January 2, 1981 – June 5, 1981C.M. Butler IIIJune 5, 1981 – October 5, 1983Raymond J. O'ConnorNovember 10, 1983 – January 31, 1986Anthony G. Sousa (Acting) February 1, 1986 – October 5, 1986Martha O. HesseOctober 6, 1986 – November 19, 1989Martin L. AlldayNovember 21, 1989 – February 5, 1993Elizabeth Anne MolerFebruary 5, 1993 – June 16, 1997James J. HoeckerJune 19, 1997 – January 18, 2001William L. MasseyJanuary 19, 2001 – January 21, 2001Curtis L. Hebert Jr.January 22, 2001 – August 31, 2001Patrick H. Wood IIISeptember 1, 2001 – July 8, 2005Joseph T. KelliherJuly 9, 2005 – January 23, 2009Jon Wellinghoff (Acting) January 23, 2009 – March 19, 2009Jon Wellinghoff March 19, 2009 – November 24, 2013Cheryl LaFleur (Acting) November 25, 2013 – July 30, 2014Cheryl LaFleur July 30, 2014 – April 14, 2015Norman Bay April 15, 2015 – January 23, 2017Cheryl LaFleur (Acting) January 23, 2017 – August 10, 2017Neil Chatterjee August 10, 2017 – December 7, 2017Kevin J. McIntyre December 7, 2017 – October 24, 2018Neil Chatterjee October 24, 2018 – November 5, 2020James Danly November 5, 2020 – January 21, 2021Richard Glick January 21, 2021 – January 3, 2023Willie L. Phillips (Acting)January 3, 2023 – February 9, 2024Willie L. PhillipsFebruary 9, 2024 – January 20, 2025Mark ChristieJanuary 20, 2025 – August 8, 2025August 13, 2025 – October 23, 2025Laura SwettOctober 23, 2025 – Present
History Federal Power Commission The Federal Power Commission (FPC), which preceded FERC, was established by Congress in 1920 to allow cabinet members to coordinate federal hydropower development.
In 1935, the FPC was transformed into an independent regulatory agency with five members nominated by the President and confirmed by the Senate. The FPC was authorized to regulate both hydropower and interstate electricity.
Natural Gas Act of 1938 In 1938, the Natural Gas Act gave FPC jurisdiction over interstate natural gas pipelines and wholesale sales. In 1942, this jurisdiction was expanded to cover the licensing of more natural gas facilities. In 1954, the Supreme Court decision in Phillips Petroleum Co. v. Wisconsin extended FPC jurisdiction over all wellhead sales of natural gas in interstate commerce.
Birth of DOE; FPC Becomes FERC In response to the 1973 oil crisis, Congress passed the Department of Energy Organization Act in 1977, to consolidate various energy-related agencies into a Department of Energy. Congress insisted that a separate independent regulatory body be retained, and the FPC was renamed the Federal Energy Regulatory Commission (FERC), preserving its independent status within the department.42 U.S.C. § 7134 Its most basic mandate was to "determine whether wholesale electricity prices were unjust and unreasonable and, if so, to regulate pricing and order refunds for overcharges to ratepayers." FERC was also given added responsibility to hear appeals of DOE oil price control determinations and to conduct all "on the record" hearings for DOE.42 U.S.C. § 7172(d). As a result, DOE does not have any administrative law judges. As a further protection, when the Department of Energy proposes a rule, it must refer the proposal to FERC, and FERC can take over the proceeding if FERC determines that the rulemaking "may significantly affect" matters in its jurisdiction.42 U.S.C. § 7174. The DOE Act also transferred the regulation of interstate oil pipelines from the Interstate Commerce Commission to FERC.42 U.S.C. §7172(b) (since repealed) However, the FERC lost some jurisdiction over the imports and exports of gas and electricity.
In 1978, FERC was given additional responsibilities for harmonizing the regulation of wellhead gas sales in both the intrastate and interstate markets. FERC also administered a program to foster new cogeneration and small power production under the Public Utilities Regulatory Policy Act of 1978, which was passed as part of the National Energy Act of 1978. The National Energy Act included the Natural Gas Policy Act of 1978, which reduced the scope of federal price regulation, to bring greater competition to both the natural gas and electric industry.
In 1989, Congress ended federal regulation of wellhead natural gas prices, with the passage of the Natural Gas Wellhead Decontrol Act of 1989.
Order Nos. 888 and 889 In 1996, FERC issued Order No. 888, which spurred the creation of regional transmission organizations in the United States. This would impact existing electric power pools by rebranding themselves as independent transmission operators. Electric utilities in some regions began to spin off their generation units as separate companies that would compete in a wholesale electric market administered by the RTOs.