Smart Grid Regulatory Bodies (Part 1) - FERC

I plan to introduce Smart Grid regulators and regulations through a sequence of medium sized blogs going forward. This piece introduces the FERC and highlights areas where it impacts the Smart Grid.  The FERC or Federal Energy Regulatory Commission is essentially the SEC of the Utility and Energy world.

As a Federal US agency, FERC’s primary responsibility is interstate wholesale Power, Oil and Natural Gas sale and transmission regulation as well as the management of energy markets. FERC has an additional focus on hydropower regulation and licensing of hydro projects as well. FERC however, does not do retail regulation or consumer level monitoring.

Ten cases where the FERC would get involved (as a result of the Energy Policy Act 2005), and areas where the FERC would impact Smart Grid are as follows –

      Direct Impact on Smart Grid

1.       Energy Market monitoring and investigation. This primarily includes transmission and   
    wholesale of electricity between states

2.       Establishment and monitoring of standards for high voltage transmission infrastructure

3.       Enforcement of regulation and imposition of penalties on utilities for non-adherence to FERC standards

4.       Administration of utility specific accounting & financial standards and monitoring of utility conduct

5.       Environmental Regulation

Indirect Impact on Smart Grid

6.       M&A of Electrical Companies

7.       Regulation of transmission and resale of natural gas between states

8.       Regulation of interstate oil transportation

9.       Regulation and approval of gas pipelines (and gas storage) and power transmission sites
    (limited). Also, regulation of site closure

10.   Licensing and inspection of private, municipal, and state hydroelectric projects

11.   Safety monitoring of proposed and existing LNG terminals