The Energy Regulation and Markets Review - Stikeman Elliott

Chapter 27
United States
Michael J Gergen, Natasha Gianvecchio and David L Schwartz 1
I
OVERVIEW
Energy regulation in the United States is complex, broad and enforced by a variety of
federal and state governmental entities. Further, it is continually evolving in response
to global and national events, market shifts, political dynamics and priorities, and
technological advances. As such, this chapter is intended to be an overview of the nature
and scope of energy regulation and markets, with a particular emphasis on the federal
regulation of electric energy and various regional bulk power markets.
II
REGULATION
i The regulators
Multiple federal and state agencies, departments and other governmental entities
regulate US energy development, and the ownership, control and operation of electric
generation, transmission/transportation and distribution, including with respect to the
rates, terms and conditions of wholesale and retail services, as well as energy market rules.
The Federal Energy Regulatory Commission (‘FERC’) is an independent federal
regulatory agency established by the United States Congress to regulate wholesale sales
of electric energy and the transmission of electric energy in interstate commerce. FERC
is also responsible for hydroelectric project licensing and safety, natural gas pipeline
transportation rates and services and oil pipeline transportation rates and services.
FERC’s authority is granted, and limited, by statutes, including the Federal Power Act, as
amended, the Natural Gas Act, as amended, the Interstate Commerce Act, as amended
and the Public Utility Holding Company Act of 2005.
1 Michael J Gergen, Natasha Gianvecchio and David L Schwartz are partners at Latham &
Watkins LLP.
334