An agency of the government of the United States created by an Act of Congress, the Department of Energy Organization Act, in 1977. This Act transferred to the FERC most of the former Federal Power Commission's interstate regulatory functions over the electric power and natural gas industries. The Act also transferred from the Interstate Commerce Commission the authority to set oil pipeline transportation rates and to set the value of oil pipelines for ratemaking purposes. In 1978, Congress passed the Natural Energy Act, broadening the FERC's jurisdiction and regulatory functions. The FERC now also regulates producer sales of natural gas in intrastate commerce. The FERC establishes uniform ceiling prices for each of several categories of natural gas, and these prices apply to all sales on a nationwide basis.

This definition is in context to Natural Gas. See more contextual defintions for Federal Energy Regulatory Commission (Ferc).