Federal Energy Regulatory Commission

The Federal Energy Regulatory Commission (FERC) is an independent agency within the U.S. Department of Energy that regulates the interstate transmission of electricity, natural gas, and oil ^[1][1] U.S. Congress. "Department of Energy Organization Act of 1977." Federal Energy Regulatory Commission, Accessed: 2026-03-28, https://www.ferc.gov/.. Its legal mandate includes overseeing wholesale electricity markets, licensing hydroelectric projects, and approving the construction of interstate natural gas pipelines and storage facilities ^[2][2] Ballotpedia. "Federal Energy Regulatory Commission." Ballotpedia, Accessed: 2026-03-28, https://ballotpedia.org/Federal_Energy_Regulatory_Commission.. While technically part of the Department of Energy, the commission functions as a separate body to ensure nonpartisan, expertise-driven decision-making ^[3][3] Kinsey, Hannah. "How DOE's Changing Relationship with FERC Implicates the Major Questions Doctrine." Georgetown Environmental Law Review, 6 Feb. 2026, https://www.law.georgetown.edu/environmental-law-review/.. It is led by five commissioners, who are appointed by the President and confirmed by the Senate to serve staggered five-year terms ^[4][4] PBS Frontline. "Regulation - What Is Ferc?" Blackout, Accessed: 2026-03-28, https://www.pbs.org/wgbh/pages/frontline/shows/blackout/regulation/.. No more than three commissioners may belong to the same political party ^[3][3] Kinsey, Hannah. "How DOE's Changing Relationship with FERC Implicates the Major Questions Doctrine." Georgetown Environmental Law Review, 6 Feb. 2026, https://www.law.georgetown.edu/environmental-law-review/.. As of 2024, the agency operated with a budget of approximately $520 million and a staff of 1,560 employees ^[5][5] S&P Global. "FERC plans 2025 budget amid staffing concerns, federal workforce cuts." S&P Global, 28 Feb. 2025, https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/ferc-plans-2025-budget-amid-staffing-concerns-federal-workforce-cuts-85474681..

Historical Background

Congress created FERC in 1977 through the Department of Energy Organization Act to replace the Federal Power Commission ^[1][1] U.S. Congress. "Department of Energy Organization Act of 1977." Federal Energy Regulatory Commission, Accessed: 2026-03-28, https://www.ferc.gov/.. The Federal Power Commission was originally established in 1920 to coordinate federal hydropower projects and later expanded to regulate interstate electricity and natural gas under the 1935 Federal Power Act and 1938 Natural Gas Act ^[2][2] Ballotpedia. "Federal Energy Regulatory Commission." Ballotpedia, Accessed: 2026-03-28, https://ballotpedia.org/Federal_Energy_Regulatory_Commission.. The 1977 reorganization aimed to consolidate energy functions following the 1973 oil crisis while maintaining an independent regulatory authority ^[1][1] U.S. Congress. "Department of Energy Organization Act of 1977." Federal Energy Regulatory Commission, Accessed: 2026-03-28, https://www.ferc.gov/.. Major structural changes occurred through the Energy Policy Act of 1992 and the Energy Policy Act of 2005, which granted the agency enhanced authority over wholesale competition and the ability to overlook state-level objections for certain energy projects ^[4][4] PBS Frontline. "Regulation - What Is Ferc?" Blackout, Accessed: 2026-03-28, https://www.pbs.org/wgbh/pages/frontline/shows/blackout/regulation/.. The agency played a controversial role during the early 2000s California electricity crisis, facing scrutiny over its response to market manipulation ^[2][2] Ballotpedia. "Federal Energy Regulatory Commission." Ballotpedia, Accessed: 2026-03-28, https://ballotpedia.org/Federal_Energy_Regulatory_Commission..

Current Events

In early 2026, Chairman Laura Swett emphasized that the agency would focus on implementing existing transmission and interconnection reforms rather than introducing new policy shifts ^[8][8] Utility Dive. "FERC in 2026: Rising costs cloud regulators' options on data centers, transmission and more." Utility Dive, 29 Jan. 2026, https://www.utilitydive.com/news/ferc-2026-outlook-data-centers-transmission-interconnection/738605/.. On January 22, 2026, the commission held a monthly meeting where Commissioner Judy Chang warned that inadequate grid upgrades could hinder the integration of new generation supplies ^[8][8] Utility Dive. "FERC in 2026: Rising costs cloud regulators' options on data centers, transmission and more." Utility Dive, 29 Jan. 2026, https://www.utilitydive.com/news/ferc-2026-outlook-data-centers-transmission-interconnection/738605/.. The Department of Energy attempted to influence the agency's agenda in February 2026 by proposing rules through Section 403 of the DOE Organization Act, a move that sparked debate regarding the commission's independence ^[3][3] Kinsey, Hannah. "How DOE's Changing Relationship with FERC Implicates the Major Questions Doctrine." Georgetown Environmental Law Review, 6 Feb. 2026, https://www.law.georgetown.edu/environmental-law-review/.. On March 19, 2026, the commission issued new reliability safeguards for the American power grid during its monthly open meeting ^[9][9] Federal Energy Regulatory Commission. "News Releases & Headlines." FERC.gov, 19 Mar. 2026, https://www.ferc.gov/news-events/news-releases.. Additionally, the agency released its State of the Markets Report for 2025 in March 2026, noting that 50 gigawatts of data center load had come online by the end of the previous year ^[8][8] Utility Dive. "FERC in 2026: Rising costs cloud regulators' options on data centers, transmission and more." Utility Dive, 29 Jan. 2026, https://www.utilitydive.com/news/ferc-2026-outlook-data-centers-transmission-interconnection/738605/..