The FERC and America's Power Distribution

The Federal Energy Regulatory Commission (FERC) is the central body regulating the US power industry, but while FERC’s responsibilities have historically been limited by federal statutes, recent moves by the very active commission have set it up to sharply increase its regulative authority in the future, making it the dominant arbiter of the growth of the renewable sector in the United States.  As lawmakers push to increase the country’s share of renewable energy generation, strategic transmission projects and greater grid interconnection will be needed to meet this goal.  With the nation moving towards a more integrated power supply, FERC will naturally see an increase in its regulatory jurisdiction.  The FERC currently benefits from some strong relationships with key legislators, and if the Senate moves on a Federal Renewable Portfolio Standard for electricity, the power of the Commission will only grow further.  But expanded FERC authority has also raised questions.  Central among these are whether the commission can effectively sort out regional disparities in electric markets, manage hugely complex logistical challenges like the future of the SmartGrid, and referee growing frictions between itself and other Federal agencies and state governments that are not eager for a new layer of Federal regulations.

The Broadening Purview of FERC

Oversight of power industry regulation and transmission in the United States has long been fragmented, with an array of federal and state agencies overseeing various components of the country’s energy production, transmission, pricing and end-use supply.  The primary of these regulatory bodies is the Federal Energy Regulatory Commission (FERC), the central federal regulatory body for the oil, gas, hydropower and electric industries. 

Full article here.