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What is FERC?
FERC and the States
FERC and the States
The U.S. has adopted a federalist system for regulating the electricity industry in this country. The Commission has an important role, and state regulators have an important role. Below is an illustration of these roles:
FEDERAL REGULATION
- Wholesale transactions (sales of energy for resale)
- Interstate transmission (transfers of power across state lines)
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Rates charged for transmission of oil
- Hydroelectric licenses
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Licensing of nonfederal hydroelectric projects
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Inspection of hydroelectric projects for safety issues
- Natural gas pipeline certification
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STATE REGULATION
- Retail sales (sales of energy to users)
- Intrastate transmission (transfers of power with state boundaries)
- Certification for new electric generation and electric transmission facilities
- Certification for oil pipelines
- Develop retail franchise areas
- Enforce service and quality standards
- Set retail tariffs
- Approve planning of transmission and generation facilities
- Approve construction of non-hydro generation and transmission facilities
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