Overview of federal energy regulatory commission

The Federal Energy Regulatory Commission (FERC) is an independent regulatory agency with up to five members that are appointed by the president and confirmed by the Senate. The members are the following; Chairman Kevin J. McIntyre, Commissioner Cheryl A. LaFleur, Commissioner Neil Chatterjee, and Commissioner Richard Glick. These members are the ones who vote if a project should be accepted or declined, they have a five year term in the FERC. According to the FERC Fiscal Year Government Budget request for 2018, the budget rounded up to 367, 600 dollars. Congress grants authority under the Federal Power Act, Natural Gas Act, and interstate commerce to regulate interstate transmission of electricity, natural gas and oil. FERC has authority to review proposals such as interstate natural gas pipelines, natural storage facilities and liquefied natural gas terminals.

FERC also have the responsibility to license Federal power hydro plants which include the responsibility to overview the inspection of private, municipal and state hydroelectric project and also if a company wants to bond a gas pipeline. Even though FERC is a Regulatory Commission Agency it does not regulate production of gas or delivery of gas, the states are responsible for such activities. Before licensing any proposed plan FERC has a team of experienced and typical legal and economic review applicants for a proposed project that when the relation is done FERC also looks for public reviews which may include the public’s opinion of whether the projects should be in process. Evaluation also includes environmental cultural geological land use and socioeconomic concerns of the project based on environmental analysis engineering, economic, policy review and public opinion the FERC uses this to determine whether to licence the project.

Even though project acquires a license, this can have an expiration date. If this occurs companies can relicense. Relicensing can take up to five years and a new inspection is to be done. FERC also protects the real ability of the high voltage Interstate transmission system through mandatory reliable standards and monitor energy markets to ensure that everyone in these markets are following the rules. The FERC was essential to the government, the rapid population expansion was in need of regulatory system since there was a demand on new power plant projects.

The FERC can be traced back in 1920 when the federal Water Power Act created the Federal Power Commission (FPC) which is what is now today the FERC. The FERC gained strength in 1928 when the Congress granted FPC enough funding to hire its own staff. In 1938 the Natural Gas Act gave the jurisdiction to FPC over its natural gas pipeline industry and the FPC was now responsible for regulating transportation and sales of natural gas. The 1977 The FPC was now converted to f e r c even though FERC have the same challenges at FPC the change in time made Industries have different dilemmas which shifted how the arc would regulate the new industries. This had major problems since the regulation guidelines were shifting to a new era, and the new shift was hard to follow. Even though the FERC had a bumpy start it managed to keep afloat and regulate what is now the U. S energy power industries. Now the FERC main goals are to provide safe, efficient and secure energy for consumers. Its primary goals are to ensure consumers of reasonable rates, terms and conditions towards their energy providers. The FERC aims to insure the power provider’s infrastructure are safe and reliable. Apart from consumer interest, the FERC also focuses on other aspects such as wildlife.

In the West the FERC has approved over 210 projects in California. These projects have been traced back to the Gold Rush era and some of the hydro plants have been affected by the drought. The National Oceanic and Atmospheric Administration (NOAA) works alongside the FERC to provide full reports over the wildlife that surrenders the potential projects areas. NOAA also supports the aquaculture that also lives around the areas the hydro plants are settled in. Aquaculture is big on this dams, this include sustainable seafood, working waterfronts, and restoration and enhancement of marine species. NOAA is essential to the license of hydro plants and its contribution is essential to the future of water energy. One of the biggest dilemmas the FERC is facing apart from the legal situations it has to go through with the acceptance of projects and license process, is the need of more energy because of the growing population and the increase of energy use for new corporations. The FERC needs to find a way to gather enough energy without exhausting the primary energy resources such as oil and electricity. The FERC needs to approve new innovative ideas that use more reliable sources such as solar power, wind power or any power that can be sustainable. The dependence of un-sustainable sources will end but it’s hard to know if the sustainable sources we know today will be sufficient to sustain the consumers. For now the most immediate solution would be to use green power even though it might be enough to reach the demand.

The development is crucial now, since the renewable power industry is poorly funded. As the consumers demand more green power, the development of improvements in the sustainable energy resources will improve. As this improves we would see a change not only in our resources but in our environment. The FERC has been one of the most crucial Agencies in the U. S, the development of a fair and uncorrupted system for the development of energy has been the major reason the U. S did not fall into a lasting monopoly of energy. The need of sustainable energy is huge since our resources are compromising the environment and the health of the consumers. Oil, fossil fuels and coal consumption should have ended, this are caveman ideas that should be left in the past.