Which commission sets rates for interstate distribution of natural gas and electricity?

Which commission sets rates for interstate distribution of natural gas and electricity?

• A. Nuclear Regulatory Commission
• B. Federal Energy Regulatory Commission
• C. Federal Communications Commission
• D. Securities and Exchange Commission

Answer: (B)

The main concept is recognizing which federal regulator handles rates for energy moved across state lines. The Federal Energy Regulatory Commission oversees the interstate transmission and wholesale distribution of electricity and natural gas and sets the rates for those services. Its authority comes from laws like the Federal Power Act and the Natural Gas Act, and it issues rate schedules and tariffs to ensure prices are just and reasonable for interstate pipelines and transmission. States typically regulate intrastate energy rates, while FERC handles the interstate side. The Nuclear Regulatory Commission deals with nuclear safety, the Federal Communications Commission with communications, and the Securities and Exchange Commission with financial markets, so none of them regulates interstate energy rates.

The main concept is recognizing which federal regulator handles rates for energy moved across state lines. The Federal Energy Regulatory Commission oversees the interstate transmission and wholesale distribution of electricity and natural gas and sets the rates for those services. Its authority comes from laws like the Federal Power Act and the Natural Gas Act, and it issues rate schedules and tariffs to ensure prices are just and reasonable for interstate pipelines and transmission. States typically regulate intrastate energy rates, while FERC handles the interstate side. The Nuclear Regulatory Commission deals with nuclear safety, the Federal Communications Commission with communications, and the Securities and Exchange Commission with financial markets, so none of them regulates interstate energy rates.