DEFINITION of 'Federal Energy Regulatory Commission - FERC'

An independent agency responsible for regulating interstate oil and gas pipelines and sales, as well as the transmission of electricity from state to state. In addition, the Energy Policy Act of 2005 charged the FERC with further duties, such as imposing mandatory standard regulations. The FERC also regulates expansion projects and the operations of gas pipelines.

BREAKING DOWN 'Federal Energy Regulatory Commission - FERC'

The FERC ensures that energy business matters are conducted in proper ethical fasion. For example, it investigates potential fraud and manipulation in the markets, and make sure that consumers have proper access to natural gas when needed.

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