PrintRegulatory Bodies
In the United States there are three levels of government: Federal, State and Local. Each of these levels of government regulates the various aspects or functions of the energy delivery systems. When it comes to the economic regulation of the energy business, the Federal and State governments provide the vast majority of economic regulation. At the federal level, we have the Federal Energy Regulatory Commission (FERC), which is responsible for regulating the interstate sale and transmission of crude oil, refined products, natural gas and electricity. We will mostly focus on the regulation of the transportation of natural gas and electricity. FERC ensures the proper operation, expansion, abandonment and rate structure and level for interstate natural gas pipelines, which move gas from production areas like Texas, Louisiana, and the Appalachian regions of Pennsylvania, West Virginia and Ohio to load centers like New York City, Chicago and San Francisco. FERC also regulates interstate electric transmission through its regulation of Regional Transmission Organizations like PJM, ISONE and CalISO.
At the state level, each state has a utility commission which ensures the safe operation and fair rates for natural gas and electricity. These bodies include the Pennsylvania Public Utility Commission, The Illinois Commerce Commission and the Massachusetts Department of Public Utilities. These agencies provide important oversight to gas and electric utilities due to the nature of most utility service being a natural monopoly.