Certified Energy Manager Practice Exam

The correct interpretation of FERC is Federal Energy Regulatory Commission. This agency, established in 1977, plays a crucial role in regulating the transmission and wholesale sale of electricity and natural gas in interstate commerce. It also oversees the licensing of hydroelectric projects. By maintaining the integrity of the energy market, FERC helps ensure reliable service, fair prices, and the equitable treatment of all energy producers and consumers. Understanding the function and scope of FERC is essential for professionals in the energy management field, as it directly impacts energy policies and regulations that affect energy efficiency and sustainability initiatives.