FERC and NERC: FERC

The Federal Energy Regulatory Commission is a federal agency that regulates the transmission and wholesale sale of electricity and natural gas in interstate commerce. It also regulates interstate transportation of oil by pipeline. FERC is composed of 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. Furthermore, FERC is responsible for reviewing siting applications for electric transmission projects in some circumstances, licenses and inspects private, municipal, and state hydroelectric projects, and protects the reliability of the high voltage interstate transmission system through mandatory reliability standards. Furthermore, FERC enforces regulatory requirements through civil penalties.

The FERC has listed priorities in its 2022-2026 strategic plan , one of which includes “Safeguarding Electric Infrastructure from Emerging Threats to Reliability and Security.” Expounding on this, FERC cites extreme weather events, climate change, and cybersecurity as serious threats to the reliability of the grid. In reference to extreme weather, FERC cites heat waves, record cold, drought and wildfires as adversely affecting the energy grid. FERC states that through a two-pronged approach of enforcing standards while also partnering with stakeholders collaboratively, FERC can act to fulfil the priorities set fourth.