Federal Energy Regulatory Commission (FERC) – Definition and Pronunciation
What is FERC?
Federal Energy Regulatory Commission (FERC): the chief energy regulatory body of the US government. Responsible for regulating LNG facilities in the US. FERC is considered an independent regulatory agency responsible primarily to Congress, but is housed in the US Department of Energy.
Examples of FERC
Historically, natural gas prices were fixed by the government, but in 1992, the Federal Energy Regulatory Commission (FERC) issued its Order 636. Prices were decontrolled and interstate natural gas pipeline companies were required to split-off any non-regulated merchant (sales) functions from their regulated transportation functions.
From “Analyzing the Dynamics of LNG Pricing: Regional Markets, Indexation, and Recent Challenges”.
Each country has its own regulations and agencies responsible for marine vessel security. For example, in the United States FERC is among several federal agencies overseeing the security of LNG terminals and peak shaving plants.
From “FAQ about Basic Facts, Safety and Security Clarifications of Liquefied Natural Gas”.
The Federal Energy Regulatory Commission (FERC) grants approval for new onshore facilities and is the lead agency for review of environmental and safety concerns, including public comment meetings.
From “Safety, Risks and Security Aspects in Liquefied Natural Gas Industry”.
Pronunciation of FERC
