Federal Energy

Regulatory Commission

Strategic Plan

FY 2014–2018

March 2014

iii

Table of Contents

Message from the Acting Chairman.......................................................................v

Mission........................................................................................................................... 1

Introduction .................................................................................................................3

About the Federal Energy Regulatory Commission.......................................................................3

Strategic Plan Overview ........................................................................................................................... 4

Goal 1: Ensure Just and Reasonable Rates, Terms, and Conditions................7

Objective 1.1 Establish Commission rules and policy that will result in just, reasonable, 

and not unduly discriminatory or preferential rates, terms, and conditions of 

jurisdictional service....................................................................................................................................7

Objective 1.2 Increase compliance with FERC rules; detect and deter market 

manipulation ................................................................................................................................................ 12

Goal 2: Promote Safe, Reliable, Secure, and Efficient Infrastructure...........17

Objective 2.1 Foster economic and environmental benefits for the nation 

through approval of natural gas and hydropower projects....................................................... 17

Objective 2.2 Minimize risks to the public associated with FERC-jurisdictional 

energy infrastructure. ...............................................................................................................................19

Goal 3: Mission Support through Organizational Excellence........................ 25

Objective 3.1 Manage Commission resources effectively and efficiently............................. 25

Objective 3.2 Empower Commission employees to drive success. ....................................... 28

Objective 3.3 Facilitate public trust and understanding of Commission activities by 

promoting transparency, open communication, and a high standard of ethics................ 31

Appendix A: Future Challenges ........................................................................... 35

Appendix B: Statutory Authorities...................................................................... 37

Appendix C: Organization Chart.......................................................................... 38

Appendix D: FERC’s Responsibilities.................................................................. 39

v

Message from the Acting Chairman

The Federal Energy Regulatory Commission (FERC or the Commission) will have very important work to do in the 

years covered by this Strategic Plan, fiscal years (FY) 2014 through 2018. The nation is experiencing significant changes 

in energy supply due to a number of factors, including the increased availability of domestic natural gas; the growth 

in renewable, demand-side and storage technologies; and new environmental requirements. Both the nation’s energy 

infrastructure and energy markets must adapt to these changes to ensure that consumers have access to reliable, efficient 

and sustainable energy at a reasonable cost. 

This Strategic Plan is not focused on specific technology or policy adaptations, but rather on the underlying and 

enduring responsibilities of the Commission under our enabling statutes. It is intended to be flexible and adaptable as 

energy challenges evolve, while providing clear and measurable targets. 

This Strategic Plan builds on the success of our prior Strategic Plan, which covered FY 2009 through 2014. Among other 

changes, it more clearly reflects all major functions and operations of the Commission. In addition, this Strategic Plan 

includes a third strategic goal to highlight our commitment to our employees and empowering them to drive success at 

the Commission. The third strategic goal further emphasizes the value the Commission places on serving the American 

public through integrity, openness, and transparency.

The Commission is fortunate to have a highly dedicated and professional team of employees across all areas of its 

operations. We are dedicated to executing our Strategic Plan to achieve results and to address the challenges that face the 

energy industry and the nation.

Cheryl A. LaFleur

Acting Chairman

Federal Energy Regulatory Commission

1

Mission

Reliable, Efficient, and Sustainable Energy 

for Consumers

Assist consumers in obtaining reliable, efficient, and sustainable 

energy services at a reasonable cost through appropriate regulatory 

and market means.

Fulfilling this mission involves pursuing three primary goals:

Ensure Just and Reasonable Rates, Terms, and Conditions

Promote Safe, Reliable, Secure, and Efficient Infrastructure

Mission Support through Organizational Excellence

1

2

3

3

I

Introduction

About the Federal Energy 

Regulatory Commission

Statutory Authority

The Federal Energy Regulatory Commission (FERC or 

the Commission) is an independent agency that regulates 

the transmission and wholesale sale of electricity and 

natural gas in interstate commerce, and regulates the 

transportation of oil by pipeline in interstate commerce. 

FERC also reviews proposals to build interstate natural 

gas pipelines, natural gas storage projects, and liquefied 

natural gas (LNG) terminals, and FERC licenses nonfederal hydropower projects. Congress assigned these 

responsibilities to FERC in various laws enacted over 

nearly 100 years, such as the Federal Power Act, Public 

Utility Regulatory Policies Act, Natural Gas Act, and 

Interstate Commerce Act. More recently, as part of 

the Energy Policy Act of 2005, Congress gave FERC 

additional responsibility to protect the reliability and 

cybersecurity of the bulk power system through the 

establishment and enforcement of mandatory standards, 

as well as additional authority to enforce FERC regulatory 

requirements through the imposition of civil penalties and 

other means. 

Organizational Structure

FERC is composed of up to five commissioners who are 

appointed by the President of the United States with the 

advice and consent of the Senate. Commissioners serve 

staggered five-year terms and have an equal vote on the 

orders through which FERC takes action. The President 

appoints one of the commissioners to be the chairman of 

FERC, the administrative head of the agency. FERC is a 

bipartisan body; no more than three commissioners may 

be of the same political party.

The staff of FERC is organized into 12 offices:

" The Office of Energy Projects (OEP) fosters economic 

and environmental benefits for the nation through 

the approval and oversight of hydroelectric, natural 

gas pipeline, natural gas storage, and liquefied natural 

gas projects that are in the public interest.

" The Office of Energy Market Regulation (OEMR)

analyzes filings submitted by electric utilities 

and natural gas and oil pipelines to ensure that 

rates, terms, and conditions of service are just 

and reasonable and not unduly discriminatory or 

preferential. OEMR also analyzes filings submitted 

by the Electric Reliability Organization (ERO) 

dealing with its budget, rules of procedure, and 

bylaws.

" The Office of Enforcement (OE) protects customers by 

conducting oversight of energy markets, identifying 

and remedying market problems in a timely manner, 

assuring compliance with rules and regulations, and 

detecting and combating market manipulation.

" The Office of Energy Policy and Innovation (OEPI)

advises the Commission on policies to ensure the 

efficient development and use of transmission, 

generation, and demand-side resources, remove 

barriers to the participation of emerging technologies 

and resources, and create a platform for innovation in 

wholesale energy markets.

" The Office of Electric Reliability (OER) oversees the 

development and review of mandatory reliability and 

security standards and ensures compliance with the 

approved mandatory standards by the users, owners, 

and operators of the bulk power system.

" The Office of Energy Infrastructure Security (OEIS) 

identifies and—working with other governmental 

agencies, industry, and other stakeholders—seeks 

comprehensive solutions to potential threats to 

FERC-jurisdictional infrastructure from cyber and 

physical attacks, including geomagnetic disturbance 

and electromagnetic pulse events.

" The Office of General Counsel (OGC) provides 

sound and timely counsel to the Commission and 

Commission staff as it fulfills responsibilities such 

as assisting in the development of Commission draft 

orders, rulemakings and other decisions; representing 

the Commission before the courts; advising the 
4

Federal Energy 

Regulatory Commission

Commission and Commission staff on legal matters; 

and advising other government agencies, regulated 

entities and the public on matters within the 

Commission’s jurisdiction.

" The Office of Administrative Litigation (OAL)advances 

the public interest in cases set for hearing by 

providing expert and independent analyses, building 

a full record of compelling evidence, and leading 

negotiations to achieve beneficial settlements.

" The Office of Administrative Law Judges and Dispute 

Resolution (OALJDR) develops an evidentiary record 

in contested cases as directed by the Commission. 

Through trial-type hearings and the issuance of an 

initial decision, OALJDR ensures that the rights 

of all parties are preserved. OALJDR also assists 

interested parties engaged in disputes to achieve 

consensual decision making through services such as 

mediation, negotiation, conciliation, arbitration, and 

facilitation.

" The Office of the Secretary (OSEC) serves as the 

focal point through which all filings are made for 

all proceedings before the Commission, notices of 

proceedings are given, and from which all official 

actions are issued by the Commission. OSEC 

promulgates and publishes all orders, rules, and 

regulations of the Commission and prescribes the 

issuance date for these unless such date is prescribed 

by the Commission.

" The Office of External Affairs (OEA) is responsible 

for communications and public relations of the 

Commission. OEA provides informational and 

educational services to Congress; federal, state and 

local governments; the news media and the public; 

regulated industries; and consumer and public 

interest groups. This office also is the Commission’s 

liaison with foreign governments.

" The Office of the Executive Director (OED) provides 

administrative support services to the Commission 

including human resources, procurement, 

information technology, organizational management, 

financial, and logistics.

Strategic Plan Overview

To achieve the mission of Reliable, Efficient, and 

Sustainable Energy for Consumers, FERC has established 

three strategic goals. Each goal is in turn broken down 

into multiple objectives that represent key components of 

the Commission’s approach to achieving the goal:

Goal 1: Ensure Just and Reasonable Rates, 

Terms, and Conditions

Objective 1.1: Establish Commission rules and 

policy that will result in just, reasonable, and not 

unduly discriminatory or preferential rates, terms, 

and conditions of jurisdictional service. 

Objective 1.2: Increase compliance with FERC rules; 

detect and deter market manipulation.

Goal 2: Promote Safe, Reliable, Secure, and 

Efficient Infrastructure

Objective 2.1: Foster economic and environmental 

benefits for the nation through approval of natural 

gas and hydropower projects.

Objective 2.2: Minimize risks to the public 

associated with FERC-jurisdictional energy 

infrastructure.

Goal 3: Mission Support through 

Organizational Excellence

Objective 3.1: Manage Commission Resources 

Effectively and Efficiently.

Objective 3.2: Empower Commission Employees to 

Drive Success.

Objective 3.3: Facilitate public trust and 

understanding of Commission activities by 

promoting transparency, open communication, and a 

high standard of ethics.

Within the strategic plan, goals represent broad outcomes 

that FERC is trying to achieve. The first two goals 

are mission critical and correspond to key aspects of 
5

FERC’s legislative authority. The third goal is a mission 

support goal focused on establishing a foundation of 

organizational excellence that enables the achievement of 

FERC’s mission. The objectives in this plan describe more 

specific, action-oriented steps that FERC will employ to 

meet the goal. 

In presenting its strategic plan, FERC has identified and 

incorporated the following elements.

A Core Function is an integrated and focused 

combination of activities and capabilities that carry 

out a critical operational function necessary to 

achieve the objective. 

A Strategy is a particular approach, initiative, 

or course of action to achieve an objective and 

is designed to address specific challenges or 

opportunities relative to achieving the objective. 

A Strategic Performance Measure provides a general 

indication of progress toward achieving the objective.

Core functions and strategies represent two important 

and complementary means by which FERC achieves the 

objectives. Core functions are operational in nature and 

describe what, as a regulatory agency, the Commission 

has an obligation to do. The core functions represent an 

investment in and commitment to maintaining FERC’s 

ability to fulfill its responsibilities as a regulatory agency 

and demonstrate its dependability and commitment 

to excellence. Strategies represent the Commission’s 

proposed approach for adapting to emerging issues 

and changing external conditions and demonstrate its 

awareness and responsiveness. 

The graphic below depicts the overall structure of the 

FERC strategic plan.

C F ORE UNCTIONS

STRATEGIES

EXTERNAL

ENVIRONMENT

LEGISLATIVE

AUTHORITY

OBJECTIVES

GOALS

R , ELIABLE

E , FFICIENT AND

SUSTAINABLE

E F NERGY OR

CONSUMERS

Performance Measure Targets

The strategic performance measures are new to this 

strategic plan and represent an effort to employ more 

outcome focused measurement within the strategic plan. 

Since these are new measures, the Commission will use 

FY 2014 to baseline the current level of performance and 

establish expectations for future performance. FERC 

will also use the baseline period to identify appropriate 

thresholds and enhance the interpretive framework for 

the measure. FERC will use this information to establish 

targets for FY 2015 – FY 2018. FERC will identify 

targets appropriate to the nature of the data and the 

specific intent of the activities being measured. 

Contractor Support

In preparing this plan for publication, FERC was assisted 

by Energetics Incorporated, who provided technical input 

into the design and assembly of this document.

7

The Strategic Plan 

FY 2014–2018

Goal 1: Ensure Just and Reasonable 

Rates, Terms, and Conditions

Ensure that rates, terms, and conditions of jurisdictional energy services are 1 just, reasonable, and not unduly discriminatory or preferential.

Electricity, natural gas, and oil are vital resources that FERC determines the appropriate approach balancing two 

fuel economic activity and help to meet the nation’s 

energy needs. Through the Federal Power Act, Public 

Utility Regulatory Policies Act, Natural Gas Act, and 

Interstate Commerce Act, among other laws, Congress 

gave FERC authority to regulate the transmission and 

wholesale sale of electricity and natural gas in interstate 

commerce, and to regulate the transportation of oil 

by pipeline in interstate commerce. The Commission’s 

responsibility in the exercise of this authority is to ensure 

that rates, terms, and conditions for wholesale sales and 

transmission of electric energy and natural gas in interstate 

commerce, as well as for transportation of oil by pipeline 

in interstate commerce, are just and reasonable and not 

unduly discriminatory or preferential. As part of this 

responsibility, the Commission balances the economic 

viability of energy suppliers with the protection of 

energy customers. Through these efforts, FERC ensures 

that consumers have reasonable access to the resources 

they need and that service providers are appropriately 

compensated. To achieve this goal, the Commission uses 

a range of ratemaking activities, including regulatory 

and market means, as well as market oversight and 

enforcement. 

Objective 1.1 Establish Commission 

rules and policy that will result in 

just, reasonable, and not unduly 

discriminatory or preferential 

rates, terms, and conditions of 

jurisdictional service.

To establish rules and policies, FERC draws on both 

market and regulatory means. When competitive markets 

exist and there are assurances against the exercise of market 

power, FERC leverages competitive market forces to 

promote efficiency for consumers while taking measures 

to make those markets more efficient. When competitive 

market conditions do not exist and competitive forces 

are inadequate to protect consumers, FERC relies on 

traditional rate-setting authority and tools such as cost-ofservice ratemaking. 

important interests: protecting consumers against excessive 

rates, and providing an opportunity for regulated entities 

to recover their costs and earn a reasonable return on their 

investments. Regardless of the approach, the Commission 

ensures that interested stakeholders have the opportunity 

to provide their views and that the Commission’s ultimate 

decisions are adequately supported by the evidentiary 

record. These techniques produce just, reasonable, and 

not unduly discriminatory or preferential rates, terms, and 

conditions.

Core Functions

To carry out the key responsibilities incumbent in this 

objective, FERC maintains a high degree of capability to 

perform the following core functions.

Core Function 1: Analyze and act upon filings 

by jurisdictional entities and interested 

stakeholders in a fair, clear, and timely 

manner.

Jurisdictional entities and interested stakeholders submit 

to FERC a continual stream of requests to change existing 

rates, terms and conditions of service, to implement new 

rates, terms and conditions of service, and to receive 

guidance through declaratory orders and other actions. 

Other interested parties, including ratepayers, state 

government agencies, and non-profit organizations, may 

participate in FERC proceedings. Prompt Commission 

action is essential to enable regulated entities to react to 

changing market and industry conditions; thoughtful 

action is critical because each filing raises an issue of 

importance to the parties providing or taking service. 

Teams of FERC economists, accountants, engineers, policy 

analysts, and attorneys bring deep and diverse experience 

to the analysis of each filing, and advise the Commission of 

potential actions. After careful consideration of each filing 

and subsequent comments or protests, FERC issues fair, 

clear, and timely orders based on the record established 

in each proceeding. These orders are carefully considered 

to protect energy customers by ensuring that the rates 

and terms and conditions of jurisdictional service are just, 

reasonable, and not unduly discriminatory or preferential.
8

Federal Energy 

Regulatory Commission

Core Function 2: Develop adequate 

evidentiary records through hearing and 

settlement processes.

The Administrative Procedures Act (APA) requires that 

FERC develop an adequate evidentiary record to support 

each of its decisions. The information provided to the 

Commission at the onset of a proceeding may not be 

adequate to resolve all issues presented. When FERC 

determines that more information is needed, it may set 

the matter for hearing or direct the parties to engage in 

settlement procedures. Either process—settlement or 

hearing—will address the identified inadequacy of the 

evidentiary record.

The Office of Administrative Law Judges and Dispute 

Resolution (OALJDR) and the Office of Administrative 

Litigation (OAL) play separate but important roles in 

developing an evidentiary record, providing FERC the 

technical, legal, and dispute resolution expertise necessary 

to resolve highly technical legal, engineering, finance, 

accounting, cost-of-service, and market power issues. 

In the settlement phase, an OALJDR judge facilitates 

negotiations among parties; OAL and the parties secure 

the information necessary. In cases that go to hearing, 

OAL staff members file testimony by expert witnesses 

on the disputed issues, conduct cross-examination of 

witnesses at the hearing, and file briefs with the presiding 

judge. An OALJDR judge presides over the hearing, 

rules on disputes over discovery and testimony, admits 

evidence, compiles the evidentiary record, and issues a 

fair and impartial initial decision after briefing has been 

completed. Following additional briefing, FERC reviews 

the initial decision and either affirms, modifies, or reverses 

it. 

Core Function 3: Conduct targeted outreach, 

technical conferences, and other proceedings 

to explore important issues, be alert to 

trends, and provide stakeholder input to 

support development of policy. 

FERC engages in ongoing review of existing regulatory 

policies to ensure that they are achieving their intended 

goals, and FERC undertakes information gathering 

actions with respect to rates, terms, and conditions 

of jurisdictional service. These efforts assist FERC in 

identifying and exploring important issues and trends. 

Based on its knowledge and experience with the industries 

it regulates, FERC may gather information through 

technical conferences or other means of outreach with 

interested parties. Commission technical, legal, and 

policy experts also carefully review and analyze filings 

submitted in response to proposals. Where necessary, 

the Commission will pursue changes to its regulations 

or announce statements of policy to implement generic 

changes to the tariffs of regulated utilities. 

Strategies

To address current challenges and opportunities 

incumbent in the achievement of Objective 1.1, FERC is 

implementing the following strategies.

Strategy 1: Employ competitive forces 

through markets to establish just, reasonable, 

and not unduly discriminatory or preferential 

rates, terms and conditions of jurisdictional 

service.

Marketplace competition benefits energy consumers by 

encouraging diverse resources, spurring innovation and 

deployment of new technologies, improving operating 

performance, and exerting downward pressure on costs. 

Harnessing competitive market forces where appropriate 

promotes rates and terms and conditions of jurisdictional 

service that are just, reasonable, and not unduly 

discriminatory or preferential. To capture the benefits of 

competition, FERC leverages market forces in each of its 

regulated industries.

Building on its past efforts to enhance competition in 

organized wholesale electricity markets, FERC will 

engage regional transmission organizations (RTO) and 

independent system operators (ISO), as well as other 

regulated entities and interested stakeholders, to ensure 

that energy, capacity, and ancillary services markets 

provide appropriate price signals, support market 

evolution, and provide appropriate opportunities for all 

eligible resources, including emerging technologies. The 

Commission will also identify and remove barriers to 

efficient trading between regional markets, including both 

organized and bilateral markets, and will work to improve 

coordination between wholesale and retail markets. 

Strategy 2: Employ traditional regulatory 

tools to establish just, reasonable, and not 

unduly discriminatory or preferential rates, 

terms and conditions of jurisdictional service.

FERC also relies on traditional regulatory tools such as 

cost-of-service ratemaking to ensure that jurisdictional 

rates, terms and conditions of service are just and 

reasonable and not unduly discriminatory or preferential. 

Commission rules require public utilities, natural gas 

pipelines, and oil pipelines that have not been granted 

market-based rate authority to establish their rates using 

a cost-based rate structure. In this way, the Commission 
9

protects ratepayers from unjust and unreasonable rates 

and ensures that natural gas and electric transmission 

services are provided on an open-access basis, that oil 

pipelines provide service consistent with their status as 

common carriers, and that all rates, terms, and conditions 

comply with FERC requirements.

Using traditional ratemaking authority, FERC will 

encourage efficient operations of public utilities and 

interstate natural gas and oil pipelines, while also ensuring 

that regulated entities have the opportunity to receive a 

reasonable return on their investments in infrastructure. 

Given the potential impact on rates, terms and conditions 

of jurisdictional service, FERC will continue to promote 

both the robust evaluation of solutions to transmission 

needs in regional transmission planning processes and 

associated cost allocation mechanisms. In addition, 

the Commission will enhance the coordination and 

harmonization of natural gas and electric infrastructure 

by engaging regulated entities and other stakeholders to 

promote inter-industry communication on operational 

and planning matters and to explore refinements to 

scheduling and contracting practices in each industry. 

Strategy 3: Promote settlements to obtain 

prompt refunds and reductions in rates and 

facilitate the rapid adoption of appropriate 

terms and conditions of service; use other 

dispute resolution services as appropriate.

Settlements benefit energy users by reducing rates and 

providing refunds far more quickly than litigation. 

Settlements may also facilitate the construction of 

needed infrastructure in a timelier manner than the full 

hearing process, and dramatically limit the time, expense, 

and resources that FERC and outside parties otherwise 

would devote to litigating the case. FERC will continue 

to use OALJDR’s and OAL’s combined technical and 

legal expertise, familiarity with Commission precedent 

and policy, negotiating skills, and ability to craft creative 

resolutions to resolve contested issues that are not 

amenable to summary resolution. Assigning such cases to 

OALJDR and OAL will facilitate achieving settlements 

and result in more prompt reductions in rates and refunds 

for the benefit of ratepayers.
10

Federal Energy 

Regulatory Commission

Performance Measures

The following measures will be used to indicate FERC’s progress toward achieving Objective 1.1.

Measure 1: Percent of interchange flows that are uneconomic, representing market 

inefficiency.

FERC creates rules and policy that leverage competitive market forces to achieve just, reasonable, and not 

unduly discriminatory or preferential rates, terms and conditions of service through market means. As applied in 

appropriate circumstances, competition, through the market fundamentals of supply and demand, will produce 

efficient outcomes and balance the economic viability of energy suppliers with the protection of energy customers 

from rates, terms and conditions of service that are unjust, unreasonable, or unduly discriminatory. To support 

effective competition in wholesale energy markets, FERC seeks to identify and address market inefficiencies as 

appropriate. To the extent that FERC’s efforts are successful, market inefficiencies should become fewer in number 

and/or magnitude. Accordingly, the level of market inefficiency over time provides a measure of FERC’s impact.

The percent of uneconomic interchange flows between adjacent RTOs/ISOs is one indication of market inefficiency 

and thus serves as an indicator of the Commission’s effectiveness in achieving Objective 1.1. The measure is focused 

on interchange flows between adjacent RTOs/ISOs where such data are readily available and there is established 

organized market energy trading. 

External Factors Affecting the Measure Results 

There are a number of external factors that affect market dynamics and may influence the ability of FERC to 

reduce market inefficiencies. These include the composition and ownership of the infrastructure (e.g., supply and 

transmission); the economy and demand for power; environmental and public policies at the state and federal levels; 

reliability issues/measures; and advances in technology. FERC will monitor these external factors in order to inform 

the interpretation of the measure results. In addition, FERC will enhance its interpretation of the results by looking 

at other indicators of market inefficiency, including excessive differences between day-ahead and real-time prices and 

out-of-market dispatch. 

Measure 2: Level of participation of stakeholders in regional transmission planning 

meetings.

In order to achieve just and reasonable rates for consumers, public utility transmission providers must work together 

to address electric transmission needs in an efficient and cost-effective manner. Furthermore, collaboration across a 

diverse group of stakeholders, including transmission customers and non-incumbent entities proposing solutions to 

transmission needs, promotes effective transmission planning and the identification of efficient and cost-effective 

solutions. Recognizing the importance of effective transmission planning to minimizing inefficiencies, FERC 

issued Order No. 1000, which requires public utility transmission providers to collaborate in regional transmission 

planning and takes steps to encourage participation by all stakeholders in those planning activities. The success of 

these regional transmission planning processes is difficult to quantify. However, participation by a broad group 

of stakeholders in a regional transmission planning process is a leading indicator of the usefulness of that process 

because stakeholders will cease devoting time and resources to a process they feel is ineffective. Accordingly, the 

level of participation by stakeholders in regional transmission planning meetings provides a measure of FERC’s 

impact on transmission planning processes and serves as an indicator of the Commission’s effectiveness in achieving 

Objective 1.1.
11

External Factors Affecting the Measure Results

A variety of external factors may influence the ability of FERC to support effective and inclusive regional 

transmission planning activities. Such factors include state or local laws that may be interpreted by prospective 

infrastructure developers as limiting their ability to participate effectively in regional transmission planning 

processes. In addition, stakeholder interest may be a function of economic developments that affect the timing 

in which new infrastructure is needed, as well as of the availability of resources dedicated to planning activities. 

Similarly, advances in technology may spur innovative transmission solutions and participation by new entrants that 

had not previously participated in these planning processes. FERC will monitor these external factors in order to 

inform the interpretation of the measure results. In addition, FERC will enhance its interpretation of the results by 

looking at other indicators of transmission planning, including whether through the planning process alternative 

projects were identified and whether a regional transmission plan was completed. Transmission plans that reflect 

the outcome of a successful planning process would indicate the potential development of more cost-effective and 

efficient transmission facilities. 

Measure 3: Percent of cases set for hearing or settlement procedures that are resolved 

by settlements.

Contested rate, tariff, or complaint cases may be set for hearing and then resolved through either settlement or 

formal adjudicatory hearing. Settling cases saves energy companies, their customers, and the Commission significant 

time and resources and provides quicker determination of appropriate rate, terms and conditions of service. Where 

settlement is not possible, a full hearing develops the evidentiary record and permits FERC to decide contested 

issues; create, apply, or modify its policies; and provide guidance to the public and the energy industry. The 

adjudicative process also helps to discourage energy companies from seeking excessive rates or onerous conditions of 

services by highlighting the risks associated with litigating a case. Accordingly, FERC seeks to maintain the optimal 

balance of cases resolved through settlement versus hearing that is necessary for establishing just and reasonable 

rates, terms, and conditions. Thus, the percent of cases resolved through settlement serves as an indicator of the 

Commission’s effectiveness in achieving Objective 1.1.

External Factors Affecting the Measure Results

There are a number of external factors that are beyond FERC’s control that may affect the number of cases that 

settle. These include economic conditions that affect the willingness of the parties to settle. In addition, the nature 

and size of the cases that require resolution during a given year can vary. A preponderance of high-profile cases may 

shift the balance toward hearing because these cases may be more likely to raise issues on which the parties prefer 

Commission decisions on the merits. FERC will monitor these external factors in order to inform the measure 

results. In addition, FERC will enhance its interpretation of results by looking at other indicators of the settlement 

and hearing processes. In particular, FERC will monitor the percent of settled cases involving the rates to be charged 

customers that result in a reduction in the filed rates and/or refunds to customers. FERC will also look at the 

percentage of cases that are completed according to established timelines and the percentage of mediation cases that 

are resolved by settlements. 
12

Federal Energy 

Regulatory Commission

Objective 1.2 Increase compliance 

with FERC rules; detect and deter 

market manipulation. 

Oversight and enforcement are essential tools for 

ensuring that rates, terms and conditions of service 

are just, reasonable, and not unduly discriminatory or 

preferential. Whereas regulatory and market means 

focus on establishing rules and policy, oversight and 

enforcement focus on increasing compliance of regulated 

entities and detecting and deterring market manipulation. 

The Commission’s oversight and enforcement program 

takes proactive steps to detect problems in energy markets 

and to reduce the probability that violations of applicable 

laws, the Commission’s regulations, or market rules will 

occur. FERC uses a balanced approach to oversight and 

enforcement efforts: conduct surveillance and analysis 

of market trends and data; promote internal compliance 

programs; employ robust audit and investigation 

programs; and, when appropriate, exercise the 

Commission’s civil penalty authority to deter violations. 

FERC also makes market data transparent to the public 

and market participants so that market efficiency is 

promoted and anomalies and areas of concern may be 

identified and reported. 

Core Functions 

To carry out the key responsibilities incumbent in this 

objective, FERC maintains a high degree of capability to 

perform the following core functions.

Core Function 1: Conduct oversight, 

monitoring, and surveillance of the natural 

gas and electric markets to detect anomalies 

and potential market manipulation.

Highly trained staff monitors the markets on a daily 

basis using sophisticated software developed by staff 

that algorithmically screens data from the physical 

and financial energy markets. Staff develops and runs 

sophisticated automated screens of market activities on 

a routine basis (daily, weekly, monthly, as appropriate 

depending on the nature of the screen) and analyzes the 

results. Any screen trips are pursued to explore reasons 

for the potential anomalous behavior, including market 

fundamentals, weather or unusual market activity, or 

business needs. To the extent data are available, the 

screening and analysis will incorporate financial products 

that may create an incentive for anomalous physical 

transactions. Using screening data and other information 

obtained from reviewing required forms submitted by 

regulated entities, staff also provides the public and market 

participants information about market fundamentals. 

In addition, careful analysis is conducted to observe and 

identify potential market participants’ misbehavior and 

anomalies, with the goal of promoting market efficiencies.

Core Function 2: Conduct audits of 

jurisdictional entities to drive compliance. 

Each fiscal year, FERC staff conducts audits of 

jurisdictional entities. The primary objective of these 

audits and other audit activities is to increase compliance 

with Commission rules and precedents. In addition, 

audits improve accountability and transparency and 

enhance efficiencies and effectiveness. These audits assess 

compliance with carefully crafted rules and regulations 

and require a deep understanding of both FERC policy 

and the complexities of energy markets. To complete 

these audits, staff draws on the expertise of different 

Commission offices with multidisciplinary skills in 

auditing, accounting, engineering, rate design, policy, 

and law. FERC staff thoroughly examines areas identified 

within the scope of each audit to provide both informal 

feedback during the audit engagements and formal 

feedback in publicly issued audit reports. A risk-based 

approach to plan and prioritize audits helps FERC 

examine areas of regulatory importance and make the 

most efficient use of its resources. Annual risk assessments 

gather input from a variety of resources, including forms 

filed with the Commission, state commissions, and the 

Securities and Exchange Commission; rate information; 

FERC and state rate actions; discussions with industry 

and state officials; discussions with senior FERC officials 

and staff; and internally developed audit screens.

Core Function 3: Conduct investigations 

of potential violations of Commission 

regulations or market rules. 

FERC staff conducts public and non-public investigations 

of possible violations of the statutes, regulations, rules, 

orders and tariffs administered by the Commission. 

Investigations may arise from a variety of sources 

including self-reports, tips, calls to the Enforcement 

Hotline, referrals from organized markets or their 

monitoring units, other agencies, other offices within the 

Commission, or as a result of other investigations. In each 

investigation, attorneys experienced and knowledgeable 

about energy markets develop a record through data 

requests, depositions, field audits, and similar discovery 

methods. Many investigations are terminated in the 

early stages of discovery because the evidence does not 

identify a violation. Where staff finds violations of 

sufficient seriousness, staff reports its findings to the 

Commission and attempts to resolve the investigation 

through settlement with appropriate sanctions and future 
13

compliance improvements before recommending that the 

Commission initiate further enforcement proceedings. In 

attempting to achieve a fair resolution of an investigation, 

attorneys will consider, among other things, the level of 

cooperation by the utility being investigated, whether 

the violation was self-reported, the compliance culture of 

the organization, and harm or risk of harm posed by the 

violation.

Strategy 

To address current challenges and opportunities 

incumbent in the achievement of Objective 1.2, FERC is 

implementing the following strategy.

Strategy 1: Promote internal compliance 

programs and self-reporting of violations 

by market participants, as necessary 

complements to the Commission’s 

monitoring, auditing, and investigatory 

efforts. 

FERC promotes internal compliance programs and 

self-reporting of violations (e.g., penalty calculations for 

violations include credit for a good compliance culture or 

for self-reporting a violation). The Commission engages 

in extensive outreach to educate market participants 

and affected stakeholders on compliance programs and 

improper market behavior and disseminates findings 

of noncompliance in audits and stipulated facts that 

form the basis of the alleged violation in the settlement 

documents. Collectively, these activities provide 

transparency for market participants to structure strong 

compliance programs. 
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Federal Energy 

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Performance Measure 

The following measure will be used to indicate FERC’s performance toward Objective 1.2.

Measure 1: Percentage of audit recommendations implemented within six months of 

issuance. 

In order to maximize compliance with Commission rules, FERC provides jurisdictional companies with formal 

feedback and recommendations from its periodic audits of facilities. Timely and expeditious implementation 

of the recommendations ensures that potential risks or negative impacts of noncompliance are minimized and 

that any refunds are promptly returned. Timely implementation of the recommendations also demonstrates a 

commitment to carry out enhancements to improve compliance with FERC precedents and strengthen regulatory 

operations and internal compliance programs. Finally, timely implementation evidences a stronger compliance 

culture within the companies, lowering the risk of future non-compliance. FERC works with these companies 

to establish robust implementation plans and conducts periodic post-audit site visits to ensure that jurisdictional 

companies properly implement the recommended corrective actions. To the extent these efforts are successful, 

the recommendations will be implemented in a prompt and expeditious manner. Accordingly, the percentage 

of audit recommendations issued and implemented within six months provides a measure of FERC’s impact on 

compliance and thus serves as an indicator of the Commission’s effectiveness in achieving Objective 1.2.

External Factors Affecting the Measure Results 

There are a number of external factors that affect the timeframe within which recommendations are implemented. 

These include delays and or elimination of recommendations when an audit is contested. Although a significant 

majority of recommendations can be implemented within six months, the timeline for completing corrective 

actions for certain recommendations may exceed the six month target, especially if they involve significant 

changes to current practices, polices, or procedures (e.g., major software upgrades). FERC will monitor these 

external factors in order to inform the interpretation of the measure results. In addition, FERC will enhance its 

interpretation of the results by looking at other indicators of compliance, including number and nature of audit 

recommendations being issued.


17

Goal 2: Promote Safe, Reliable, 

Secure, and Efficient Infrastructure

Promote the development of safe, reliable, secure, and efficient infrastructure 2 that serves the public interest.

Core Functions

To carry out the key responsibilities incumbent in this 

objective, FERC maintains a high degree of capability to 

perform the following core functions.

Core Function 1: Conduct thorough and 

timely technical review of applications to 

construct, operate, or modify natural gas and 

hydroelectric infrastructure. 

To meet the growing demand for energy, FERC must 

respond to energy infrastructure applications with timely 

and well-reasoned decisions that protect the environment 

while fostering the growth of a sustainable infrastructure. 

The Commission’s authorization processes are designed to 

increase efficiency and ensure expeditious determinations 

by engaging stakeholders early in the process—during 

pre-filing—to identify and resolve concerns with the 

The Natural Gas Act and the Federal Power Act, among 

other statutory authorities, charge FERC with the 

responsibility to promote the development of robust, 

reliable and secure energy infrastructure that operates 

safely, reliably, and efficiently. FERC authorizes the 

construction and operation of interstate natural gas 

pipelines and storage projects, liquid natural gas (LNG) 

facilities, and non-federal hydropower projects. Other 

Commission responsibilities include ensuring the 

safety of non-federal hydropower projects and LNG 

facilities throughout their entire life cycle; overseeing the 

development and review of, as well as compliance with, 

mandatory reliability and security standards for the bulk 

power system; and collaborating with regulated entities 

and other federal and state governmental agencies to 

identify and seek solutions to cyber and physical threats to 

FERC-jurisdictional infrastructure. 

Objective 2.1 Foster economic and 

environmental benefits for the nation 

through approval of natural gas and 

hydropower projects.

Demand for natural gas in the United States is at its 

highest levels on record, and natural gas production 

continues to increase due to the development of shale 

gas. Among its many uses, natural gas is a substantial and 

growing resource for electric power generation, in part 

due to the current low price of natural gas. The responsible 

development of interstate natural gas infrastructure—

pipelines, storage, and LNG facilities—is a critical link in 

ensuring that natural gas supply can reach market areas. 

Interest in developing hydropower projects has also 

increased, in part because hydropower offers the benefits 

of a renewable, domestic energy source that supports 

efficient, competitive electric markets by providing lowcost energy reserves and ancillary services. Hydropower 

projects may also provide other public benefits such as 

environmental protection and enhancement, water supply, 

irrigation, recreation and flood control.

application prior to filing. In accordance with the National 

Environmental Policy Act, highly-trained FERC technical 

staff, including biologists, archaeologists, geologists, 

other environmental scientists, and engineers thoroughly 

analyze the environmental effects of proposed natural gas 

pipeline, gas storage, LNG, and hydropower facilities. 

Staff engineers model projects that propose to construct 

natural gas pipelines, gas storage, and LNG facilities to 

verify that the design is appropriate for the proposed 

service. In addition, FERC coordinates with other 

agencies to consider environmental statutes as appropriate, 

including the Endangered Species Act, National Historic 

Preservation Act, Coastal Zone Management Act, and 

Clean Water Act. These actions help the Commission 

make well-reasoned and timely decisions on natural gas 

and hydroelectric infrastructure, fostering economic and 

environmental benefits.

Core Function 2: Ensure natural gas and 

hydroelectric infrastructure is constructed 

and operated in compliance with FERC 

orders. 

Project authorizations issued by FERC for natural gas 

pipelines and storage facilities, LNG facilities, and 
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Federal Energy 

Regulatory Commission

hydropower facilities include terms and conditions 

designed to protect, mitigate, and enhance the 

environmental resources of project areas. These terms 

and conditions address water and air quality; land use 

and recreation; erosion control; cultural resources; and 

wildlife and endangered species, including fish habitat 

and passage. As specified by the issued order, licensees and 

certificate holders implement specific environmental and 

operational measures, generally after filing detailed plans, 

proposals, and reports regarding the implementation of 

the measures. 

FERC ensures compliance with these measures through 

extensive environmental review and inspection programs 

in both the natural gas and hydropower industries. 

These programs evaluate and assess implementation 

and compliance with the environmental and public use 

requirements of authorizations to ensure the protection 

and enhancement of resources at each project. Onsite inspections conducted by qualified Commission 

staff familiar with the project and FERC rules and 

regulations occur at regularly scheduled intervals to 

ensure that projects are environmentally compliant during 

construction and throughout the project’s life cycle.

Strategy

To address challenges to and opportunities incumbent in 

the achievement of Objective 2.1, FERC is implementing 

the following strategy.

Strategy 1: Conduct outreach with 

stakeholders to promote the exchange of 

information and ensure understanding of 

FERC procedures. 

Reconciling competing interests remains a significant 

challenge throughout the infrastructure siting processes, 

which can be complex, lengthy, and contentious. Issues 

are best addressed openly and early in the application 

processes. FERC encourages, and in certain circumstances 

requires, applicants or project proponents to engage 

in early involvement with federal, state, and tribal 

government agencies, affected landowners, and the public. 

The Commission frequently sponsors seminars and 

workshops to aid in the understanding of and successful 

adherence to the FERC-issued licenses, certificates, and 

authorizations. Early recognition and resolution of issues 

leads to timely decisions for infrastructure projects that 

meet public demand for energy.

Performance Measures

The following measures will be used to indicate FERC’s performance toward Objective 2.1.

Measure 1: Percent of orders issued within established timeframes.

FERC regulated entities must obtain authorization before beginning the construction of natural gas pipeline, 

natural gas storage, LNG, and hydropower facilities and implementing measures required from relicensing a 

hydropower facility. In order to maximize both the economic and environmental benefits of these projects, 

FERC must process applications in an efficient and timely manner and ensure that its authorizations are based 

on thorough environmental analysis. FERC has established timeframes that balance the competing demands 

of timeliness and thorough analysis. Accordingly, the percent of applications processed within established 

timeframes serves as a measure of FERC’s performance in processing applications and also provides an indication 

of its effectiveness in achieving Objective 2.1.

External Factors Affecting the Measure Results

External factors may influence the ability of FERC to achieve this measure. Other agencies have input into 

FERC’s processes and can greatly affect its ability to process applications within established timeframes. Whether 

applicants file complete applications and respond in a timely manner to requests for information can also be a 

factor. FERC will monitor the impact of these factors in order to inform the interpretation of the measure results.
19

Objective 2.2 Minimize risks to 

the public associated with FERCjurisdictional energy infrastructure.

In addition to reviewing applications and issuing orders 

with respect to construction, operation, and modification 

of natural gas facilities and non-federal hydropower 

facilities, FERC has other responsibilities concerning 

energy infrastructure subject to its jurisdiction. These 

responsibilities include ensuring the safety of non-federal 

hydropower projects and LNG facilities throughout 

their entire life cycle; overseeing the development 

and review of, as well as compliance with, mandatory 

reliability and security standards for the bulk power 

system; and collaborating with regulated entities and 

other governmental agencies at the federal and state 

levels to identify and seek solutions to threats to FERCjurisdictional infrastructure from cyber and physical 

attacks. Through these actions, FERC minimizes risks to 

the public associated with jurisdictional infrastructure.

Core Functions

To carry out the key responsibilities incumbent in this 

objective, FERC maintains a high degree of capability to 

perform the following core functions.

Core Function 1: Conduct comprehensive and 

timely safety inspections of hydroelectric and 

LNG facilities.

Failure of an LNG facility or a non-federal hydropower 

project can result in loss of life and significant 

environmental and economic consequences. To fulfill its 

responsibility for ensuring the safety of these facilities, 

FERC relies on physical inspections for detecting and 

preventing potential catastrophic structural failures, 

thereby protecting the public against the risk associated 

with such an event. FERC engineers are highly trained 

and work closely with local officials at all stages of 

project development and operation. Before projects are 

constructed, the designs, plans, and specifications of the 

proposed facility are reviewed and approved. Through 

regularly scheduled and comprehensive inspections during 

construction and operation, FERC engineers verify that 

dams and LNG facilities meet stipulated design criteria, 

identify necessary remedial modifications or required 

maintenance, and ensure compliance with requirements. 

This approach allows the Commission to ensure the safety 

of the public, as well as the continued operation of the 

facilities to meet the energy demands of the nation.

Core Function 2: Provide for the reliable 

operation of the bulk power system by 

overseeing development and enforcement of 

mandatory standards. 

The Energy Policy Act of 2005 amended the Federal 

Power Act to charge FERC with helping to ensure the 

reliability of the bulk power system. In fulfilling this 

responsibility, the Commission draws on the substantial 

expertise of its staff, including electrical engineers with 

many years of experience in the utility industry. FERC 

engineers analyze standards proposed by the Electric 

Reliability Organization (ERO) to determine whether 

those standards support the reliable operation of the 

grid. The Commission also reviews major blackouts to 

determine whether standards were violated or should be 

changed to help prevent future blackouts. In addition, 

the Commission oversees audits, investigations, and 

proposed penalties of the ERO and the ERO regional 

representatives to help ensure that their efforts will result 

in strong compliance with mandatory standards. These 

actions together reduce the risk of interruption to the 

reliable supply of electricity that is vital for the nation.

Core Function 3: Coordinate with other 

government agencies and regulated entities 

to identify and advance sound practices 

to protect against cyber and physical 

security threats to infrastructure within the 

Commission’s jurisdiction.

Growing cyber and physical security threats, along with 

increasing automation and a rapidly changing energy 

supply mix, demand an agile and focused approach to 

energy infrastructure security. Amid these threats, the 

Commission coordinates with other government agencies 

and regulated entities to maintain awareness of threats, 

activities, and capabilities of adversaries that may initiate 

a cyber or physical attack on energy infrastructure within 
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Federal Energy 

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FERC’s jurisdiction. The Commission’s collaboration in 

this area with regulated entities provides an important 

complement to FERC’s related responsibilities for both 

regulatory requirements and enforcement.

The Commission supports the development and 

encourages implementation of effective tools and 

techniques to enhance protection of jurisdictional 

infrastructure though the extensive technical expertise of 

its staff, which includes highly skilled electrical engineers 

and computer scientists. Commission staff provides 

a unique perspective that draws on both decades of 

experience in regulating this infrastructure and extensive 

experience in grid operations. These contributions from 

the Commission reduce the risk of cyber and physical 

security threats to vital energy infrastructure. Finally, the 

Commission collaborates with government partners and 

industry to identify key facilities that present the greatest 

risk, helps guide security assessments, and proposes 

mitigation measures to protect jurisdictional energy 

infrastructure.

Strategies

To address current challenges and opportunities 

incumbent in the achievement of Objective 2.2, FERC is 

implementing the following strategies.

Strategy 1: Use risk-informed decision 

making to evaluate dam safety.

Risk-informed decision making (RIDM) provides 

the capability to assess non-traditional failure modes, 

levelize risk across different loading conditions, focus 

inspections and surveillance on the specific potential 

failure modes and monitoring programs at projects, and 

guide remediation projects to provide an overall reduced 

level of risk to the public. FERC will continue to develop 

the necessary risk assessment guidelines, procedures and 

policies, and to train Commission staff, dam owners, and 

consultants in risk assessment procedures, methodologies 

and tools. Development of the guidelines and procedures 

will continue to be carried out in an open, collaborative 

process with representatives of the hydropower industry, 

including FERC-regulated licensees. These efforts will 

run parallel to the traditional dam safety inspections and 

together will ensure public safety.

Strategy 2: Address emerging issues by 

conducting, reviewing and overseeing 

assessment of the planning and operation of 

the bulk power system to ensure its reliability.

Challenges facing the bulk power system are not static, 

but evolve over time with demands on the system. 

The electrical grid is changing rapidly in response to 

developments such as greater reliance on natural gas 

as a fuel to produce electricity and greater reliance on 

renewable sources of electricity. To help maintain the 

grid’s reliability as these and other changes occur, FERC 

will engage with the ERO to discuss such changes 

and their impact, and FERC will examine whether 

corresponding changes in how the grid is operated are 

appropriate. Based on its findings, the Commission may 

encourage utilities to change their operational methods or, 

if appropriate, require changes in reliability standards that 

govern operation of the grid. 

Strategy 3: Promote improvement to energy 

infrastructure security.

It is important to understand the impact that individual 

facilities have on the resilience of critical infrastructure 

systems, as well as the risk of disruption to those systems 

from threats and vulnerabilities through cyber and 

physical attacks. To these ends, the Commission will use 

its modeling and assessment capabilities as appropriate 

in support of analyzing infrastructure threats and 

vulnerabilities to identify particularly critical equipment 

across the Commission’s jurisdictional infrastructures. 

The Commission will conduct outreach to facility owners 

and operators to promote security improvements at those 

facilities. In coordination with these actions, Commission 

staff will proactively examine threats and potential 

vulnerabilities in the cyber and/or physical security 

posture of those facilities through onsite assessments. 

These assessments will better enable facility owners and 

operators to recognize current threats, potential attack 

vectors, potential counter measures and effective practices 

to minimize potential impacts and recovery time should a 

facility be compromised.
21

Performance Measures

The following measures will be used to indicate FERC’s performance toward Objective 2.2.

Measure 1: Percent of hydropower facilities that have approved dam safety programs. 

In order to minimize risks to the public, hydropower facilities are required to implement safety programs that 

comply with Commission regulations and industry standards for the life of the facility. In addition, FERC requires 

all high and significant hazard dams to develop and obtain approval for a rigorous Owners Dam Safety Program, 

which acknowledges the dam safety responsibilities of each level of the licensee’s organization, establishes protocols 

for internal and external dam safety communication, and has clear designation of dam safety responsibilities among 

the licensee’s staff. To the extent that these efforts are successful, facilities will maintain compliant safety programs. 

Accordingly, the percent of facilities that have either an approved Owners Dam Safety Program accepted or that 

have an approved plan of action to correct any deficiencies identified by the Commission serves as an indicator of 

the effectiveness in achieving Objective 2.2.

External Factors Affecting the Measure Results

There are a number of external factors that affect the extent to which hydropower facilities maintain compliant 

safety programs. These include adequate facility funding and personnel staffing on the part of the facility owners 

to carry out their safety programs, as well as the extent to which these entities establish a corporate culture that 

values compliance. In addition, for dam safety, other federal and state agencies can impact licensee’s ability to carry 

out programs. FERC will monitor the impact of these factors in order to inform the interpretation of the measure 

results.

Measure 2: Number of LNG facility recommendations implemented by established time 

frames. 

In order to minimize risks to the public and to ensure reliable infrastructure, LNG facilities are monitored to 

ensure that they are being maintained and operated in a manner consistent with the Commission’s certificate/

authorization for the life of the facility. FERC issues a letter after each LNG inspection that lists any 

recommendations for safe and reliable operation and a timeline for completing these items. Companies are 

responsible for completing these items on time to ensure that the facility continues to be in compliance with the 

Commission’s certificate/authorization. FERC makes a concerted effort to craft recommendations that clearly 

identify equipment or operational issues/improvements with practical timelines for completion. FERC also 

works with the facilities as needed to ensure that they understand the recommendations and how they can be 

implemented. Accordingly, the percentage of recommendations implemented within established timeframes 

provides a measure of FERC’s impact on LNG facility safety and reliability and thus serves as an indicator of the 

Commission’s effectiveness in achieving Objective 2.2.

External Factors Affecting the Measure Results

There are a number of external factors that affect the extent to which LNG facilities can implement FERC’s 

recommendations in a timely manner. These include the facility operating status, adequate facility funding and 

personnel staffing on the part of the facility owners to carry out the recommendations, as well as the extent to 

which these entities establish a corporate culture that values compliance. FERC will monitor the impact of these 

factors in order to inform the interpretation of the measure results.
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Federal Energy 

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Measure 3: The amount of lost megawatts in a given year resulting from bulk power 

system transmission-related events (unplanned disturbances), excluding weatherrelated outages. 

FERC engages in a number of activities to oversee the users, owners and operators of the bulk power system to 

ensure the reliability of the nation’s bulk power system, and to contribute to a dependable power supply for all 

consumers. Under its authority over mandatory and enforceable reliability standards, the Commission can require 

the development of new reliability standards, as well as modifications to existing reliability standards, to support 

a reliable grid. The Commission also ensures the quality and sufficiency of reliability standards proposed by the 

Electric Reliability Organization (ERO). The Commission further supports these efforts by overseeing the ERO’s 

enforcement of the reliability standards. In addition, the Commission monitors the operations of the bulk power 

system and investigates reliability events and outages to help find ways to prevent recurrences. The Commission 

also conducts studies of emerging reliability issues to help craft policies to protect and improve the reliability of 

the nation’s bulk power system. All of these efforts are intended to minimize avoidable outages caused by problems 

on the bulk power system. Accordingly, the annual amount of lost load resulting from unplanned disturbances 

other than severe weather provides a measure of FERC’s impact on system reliability and serves as an indicator of 

the Commission’s effectiveness in achieving Objective 2.2. 

External Factors Affecting the Measure Results

There are a number of external factors that affect bulk power system reliability and therefore influence the ability 

of FERC to minimize the amount of lost megawatts. FERC does not operate the bulk power system and cannot 

direct utility operations except by approving and overseeing enforcement of stakeholder-developed reliability 

standards. Also, many electrical outages are caused by severe weather or by problems on local distribution facilities 

not regulated by FERC. As the electric grid grows in complexity and technological sophistication, the rate of 

emerging reliability issues is likely to accelerate. Although FERC investigates these issues to prevent recurrences, 

the initial occurrence is often extremely difficult to anticipate. FERC will monitor causes of outages and the 

nature and frequency of emerging issues in order to inform the interpretation of the measure results. In addition, 

FERC will enhance its interpretation of the results by looking at other indicators of bulk power system reliability, 

including the number of events each year and the affected number of customers. 


25

Goal 3: Mission Support through 

Organizational Excellence

Achieve organizational excellence by using resources effectively, adequately 

equipping FERC employees for success, and executing responsive and 

transparent processes that strengthen public trust. 

3

The public interest is best served when the Commission 

operates in an efficient, responsive and transparent 

manner. The Commission achieves this operational 

state by maintaining processes and providing services 

in accordance with governing statutes, authoritative 

guidance, and prevailing best practices. The Commission’s 

staff, while serving in different component offices, 

must work collaboratively and execute processes that 

work in concert with each other to produce the highquality results expected by the American people. In 

accomplishing this state, the Commission will use its 

resources efficiently, empower its employees, and earn the 

public trust. These essential outcomes are indicative of a 

model regulatory agency. 

Objective 3.1 Manage Commission 

resources effectively and efficiently.

The Commission must prioritize resource allocations 

and make prudent investments in relation to specific 

program activities or challenges. These investments should 

yield returns that directly benefit the agency’s mission. 

Additionally, federal statutes require the Commission to 

recover its operating costs from the entities it regulates. 

The Commission must do this in a manner that avoids 

unnecessarily increasing the cost of energy to consumers. 

Given these considerations, the Commission must 

be steadfast in its commitment to use its resources in 

an efficient manner. In meeting the demands of this 

commitment, the Commission must consistently 

develop comprehensive resource plans, execute planned 

requirements through the delivery of compliant services, 

and monitor resource utilization through established 

control activities.

Core Functions

To carry out the key responsibilities incumbent in this 

objective, FERC maintains a high degree of capability to 

perform the following core functions.

Core Function 1: Conduct comprehensive 

resource planning. 

Comprehensive resource planning is a pre-requisite 

to efficient resource utilization. The Commission 

establishes resource plans that align with its strategic 

focus and provides the related resource levels needed 

to achieve its mission. Through resource planning, the 

Commission identifies its human capital, information 

technology, infrastructure and financial needs. It employs 

a collaborative management approach to develop specific 

processes that inform related investment decisions and 

strategies. The Commission identifies its staffing and 

competency needs through human capital processes. 

Significant information technology and infrastructure 

investments are identified through capital planning and 

investment control processes. Finally, financial needs are 

identified through the budget formulation process. These 

efforts culminate in the development of comprehensive 

resource plans that support accomplishment of the 

agency’s mission. Most importantly, these planning 

efforts establish an essential foundation for the execution 

of strategies that maximize the use of the Commission’s 

resources. 

Core Function 2: Execute resource plans 

through the delivery of compliant services to 

meet organizational needs.

Comprehensive resource plans provide the framework 

needed to deliver services that meet organizational 

needs. These services are delivered through compliant 

processes which are governed by a vast universe of statutes 

and regulations that deter fraud, waste and abuse. The 

seamless execution of agency resource plans coupled with 

the agency’s compliance with authoritative guidance 

promotes efficient resource utilization. External audits 

and reviews have consistently affirmed the compliant 

nature of the underlying processes utilized to deliver these 

mission-support services throughout the Commission. 

The Commission executes its resource plans and deploys 

mission-support services to meet human capital, 

information technology, and financial management 
26

Federal Energy 

Regulatory Commission

requirements. Specifically, these services enable the 

acquisition and retention of a diverse and skilled 

workforce; procurement of value-added commodities and 

contractor assistance; delivery of a stable, resilient and 

secure infrastructure; and the authorization of financial 

activities to inform management decisions.

Core Function 3: Measure and evaluate the 

effective use of agency resources through 

established control programs and reporting 

requirements.

The Commission has deployed measurement and 

evaluation processes against its comprehensive resource 

plans to gauge success toward achieving its strategic 

goals. Management tracks the progress of specific agency 

activities and reports status on a continual basis, and takes 

action as appropriate to address identified performance 

deficiencies. These important activities ensure that the 

Commission is always cognizant of its performance 

against its specific plans and enables the agency to redirect efforts to maximize the effective use of its resources. 

The Commission has demonstrated an exceptional ability 

to fairly represent its financial condition via its financial 

statements, which have been affirmed by independent 

auditors for the last 20 years. Finally, it has provided 

stakeholders with performance information via federally 

mandated accountability reports. These key deliverables 

provide information to management officials for effective 

decision making and are essential to managing agency 

resources efficiently.

Strategies

To address current challenges and opportunities 

incumbent in the achievement of Objective 3.1, FERC is 

implementing the following strategies.

Strategy 1: Direct human capital 

management efforts toward addressing 

existing staffing vulnerabilities based on 

current workforce demographics.

The Commission will implement mitigation strategies to 

account for the potential loss of approximately 30% of its 

staff to retirement within the next five years. The agency 

will focus its efforts on the competencies and positions 

most affected by attrition of this type. It will aggressively 

recruit and hire highly skilled people to fill the void left 

by separating employees. The Commission will focus on 

the execution of its hiring processes to ensure it maximizes 

allocated financial resources in a timely fashion. 

Additionally, the agency will develop the workforce to 

meet responsibilities vacated by experienced staff.

Strategy 2: Maintain a stable and secure 

information technology infrastructure while 

providing innovative solutions that yield a 

return on investment.

The Commission’s information technology infrastructure 

supports many of the agency’s workload demands. This 

infrastructure must be dependable and resilient. The 

Commission will invest the necessary resources to support 

baseline operations prospectively. Moreover, it will invest 

in modern technologies that provide opportunities 

for lower future operating costs. For example, the 

Commission could deploy more cost-effective means 

to meet storage needs. Accordingly, the Commission 

will devise plans to leverage resilient and secure cloud 

storage models to support its current and future needs. 

The Commission will also migrate its resident document 

management and email applications to more cost-effective 

solutions that will leverage cloud technologies. These 

migrations to emerging technologies will yield significant 

cost savings, given the economies of scale that can be 

realized with hosted cloud solutions.

Strategy 3: Implement a facilities 

modernization plan that will make efficient 

use of available office space.

The Office of Management and Budget (OMB) has 

directed agencies to better utilize space within the 

facilities that house their operations. The Commission 

is ending a 20-year lease term in September 2015 for 

its headquarters building and is seeking to exercise an 

available 10-year extension. The Commission must make 

more efficient use of the space within the headquarters 

building by consolidating its operations within 

approximately 90% of the existing space it is currently 

utilizing. It must also consolidate into the headquarters 

facility employees from the Office of Administrative 

Litigation that currently occupy space within another 

building. To reach this end, the Commission will develop 

a new housing strategy that will provide for more dense 

seating configurations. Additionally, it will oversee 

a complex multi-year renovation effort to realize the 

space-savings. The Commission’s consolidation effort 

is dependent upon Congressional approval of its plan 

and the appropriations necessary to cover the cost of 

renovations.
27

Performance Measures

The following measures will be used to indicate FERC’s performance toward Objective 3.1

Measure 1: Average hiring cycle time.

In order to efficiently use its resources, the Commission must ensure planned staff levels are sufficiently maintained. 

The Commission allocates over two-thirds of its budget to employee compensation. Any undue lapse in recruiting 

and hiring new employees impacts the ability of the agency to recover its annual appropriation as required by 

statute. Additionally, the potential staff losses the agency could incur as a result of retirements or normal attrition 

impacts the ability of the agency to execute its resource plans. The Commission will take action to reduce the 

amount of time it takes to fill vacancies. Accordingly, the average hiring cycle time is a measure of FERC’s 

performance in this regard and serves as an indicator of the Commission’s success in achieving Objective 3.1.

External Factors Affecting the Measure Results

The external factors limiting the Commission’s ability to execute timely hiring include the challenges related to the 

passage of annual appropriations. The Commission’s hiring efforts are restricted by delays in the receipt of its full 

appropriations. In such instances, resources are re-prioritized to address other expenditures. 

Measure 2: Percent reduction in targeted information technology costs.

With the ability to deploy emerging technologies that provide for lower cost IT solutions, the Commission 

is targeting a reduction in current costs incurred for electronic storage and e-mail. It will also streamline and 

consolidate the number of business applications it currently manages. This action will result in lower operational 

and support costs and the savings derived from these efforts can be re-programmed to meet other missioncritical IT needs. Accordingly, the reduction of these targeted costs over the next 5 years is a measure of FERC’s 

performance in this regard and serves as an indicator of the Commission’s effectiveness in achieving Objective 3.1. 

External Factors Affecting the Measure Results

The market’s ability to support the Commission’s specialized security needs could impact the Commission’s ability 

to migrate to these new technologies. 

Measure 3: Time and cost of building modernization effort relative to established 

schedule and budget.

The Commission must establish a design plan and budget for an extensive consolidation effort within its 

headquarters facility. This budget funds a multi-million dollar renovation effort that will span the next 5-6 years. 

The Commission has requested adequate resources to cover the cost of the effort. The Commission will partner 

with the General Services Administration, private contractors and the facility owner to execute the required 

work. It is imperative that management closely monitors project performance relative to schedule and resources 

given the significant investment at play and the numerous entities involved. Accordingly, the extent to which the 

modernization effort is completed within schedule and budget is a measure of FERC’s performance in managing 

the project and serves as an indication of its effectiveness in achieving Objective 3.1.

External factors affecting the Measure Results

The external factors impacting the Commission’s ability to meet the requirements associated with this schedule 

include the availability of resources and vendors’ abilities to meet planned deadlines. The effort is contingent upon 

the Commission receiving Congressional approval of its plan and sufficient appropriations to cover the cost of 

renovations. If the agency does not receive the requested funding, it cannot absorb such substantial costs within its 

normal operating budget. Moreover, poor execution on the part of the many vendors that will contribute to this 

effort could result in unforeseen delays and additional costs.
28

Federal Energy 

Regulatory Commission

Objective 3.2 Empower Commission 

employees to drive success.

Commission employees are directly responsible for 

achieving FERC’s mission. On an annual basis, the 

Commission allocates over two-thirds of its budget to 

directly cover the compensation costs of its employees. 

Given this significant investment, the Commission places 

extremely high value on its employees and is focused on 

ensuring their success. The Commission seeks to become 

an employer of choice for individuals who can contribute 

a diverse set of needed skills. With this objective in mind, 

the Commission recognizes that a model regulatory 

organization must ensure that its employees are equipped 

with the requisite tools and services they need to 

accomplish the mission.

Core Functions

To carry out the key responsibilities incumbent in this 

objective, FERC maintains a high degree of capability to 

perform the following core functions.

Core Function 1: Communicate 

management’s expectations through the 

performance management system, which 

aligns employee performance with the 

Commission’s strategic goals and objectives.

This capability is vital in empowering employees to 

meet the Commission’s goals and objectives. Through 

this process, management conveys to employees their 

individual responsibilities relative to the agency’s mission 

and provides employees with a line of sight from their 

responsibilities to the successful achievement of that 

mission. This direct communication establishes employee 

accountability for expected results and empowers 

the workforce to advance agency goals. Management 

continually engages staff through this communication 

channel to ensure employees have a clear focus on 

performance expectations and that sufficient resources 

are at their disposal to meet these expectations. Based on 

annual feedback from the Federal Employee Viewpoint 

Survey (FEVS), Commission employees have indicated 

that they are fully aware of their role in meeting agency 

goals. 

Core Function 2: Deliver tools, products and 

services to meet employees’ needs. 

The Commission provides a host of services which 

directly support employees’ needs. It has deployed these 

services to attract and retain the highly skilled workforce 

needed to meet the agency’s mission. The Commission has 

implemented effective training programs which develop 

employees’ leadership and professional capabilities. 

The agency also provides a safe and secure working 

environment for its employees to thrive. With regard to 

information technology, the agency provides modern 

tools and services that streamline assigned work processes 

and facilitate telework. Lastly, the Commission provides 

its employees with an array of financial services to include 

their personal compensation, reimbursement for travel, 

and subsidies for commuting expenses. FEVS results 

have demonstrated the Commission’s ability to provide 

employees with the necessary resources to drive agency 

success. 

Strategies

To address current challenges and opportunities 

incumbent in the achievement of Objective 3.1, FERC is 

implementing the following strategies.

Strategy 1: Deliver a competencybased training program and a corporate 

knowledge management approach using the 

Commission’s automated tools.

The Commission will heavily invest in succession and 

knowledge management activities to ensure the agency 

equips employees with the requisite knowledge to 

meet strategic demands going forward. It will develop 

a competency-based training program to mitigate 

knowledge management risks associated with 30% of 

the agency’s workforce being eligible for retirement in 

the next 5 years. The agency will assess training needs 

associated with its most populous occupations and 

develop associated curriculums. Upon developing these 

specialized courses, the Commission will deliver this 

instruction through its automated Learning Management 

System and other collaborative tools. With regard to 

knowledge management activities, the Commission will 

develop a uniform approach which will seek to preserve 

corporate information and make it accessible to all 
29

Commission employees. These delivery mechanisms can 

provide training to Commission employees in a costeffective and easily repeatable fashion. Such a strategy 

will ensure employees possess the specialized skills and 

knowledge required to successfully support the agency’s 

mission.

Strategy 2: Analyze results from the Federal 

Employee Viewpoint Survey (FEVS) and other 

employee outreach activities to continually 

gauge employee perceptions on performance 

management and the adequacy of mission 

support tools, products and services.

With the current limitation on funding and impacts 

to employee-related services, it is imperative that the 

Commission is fully aware of employees’ most critical 

needs. This knowledge will facilitate the agency in 

ensuring employees are adequately empowered to 

meet their mission responsibilities. To this end, the 

Commission will utilize results from the annual FEVS 

to assess employee perceptions relative to performance 

management. The Commission will also conduct other 

employee outreach activities to gauge the effectiveness of 

its employee-related processes and services. The agency 

will develop action plans to address any areas not favorably 

rated and take corrective action to improve processes and 

services which impact related employee perceptions. 
30

Federal Energy 

Regulatory Commission

Performance Measures

The following measures will be used to indicate FERC’s performance toward Objective 3.2

Measure 1: Percent of milestones that are met in the deployment of a competencybased training program using automated tools.

The deployment of this program addresses critical developmental needs the agency will be required to address 

due to the probability of 30% of the current workforce retiring within the next 5 years. The Commission must 

maintain a highly skilled workforce to address its regulatory responsibilities. A competency-based training 

program will ensure employees will be equipped with the pre-requisite knowledge to perform their job 

expectations. Upon development of the specialized curriculum, the Commission will deploy automated solutions 

to streamline the training process. The entire deployment of the competency-based training program will be 

tracked against pre-established milestones. The percent of those milestones that are met is a measure of FERC’s 

performance in deploying the program and an indication of its accomplishment of Objective 3.2.

External Factors Affecting the Measure Results

There are no significant external factors.

Measure 2: Favorability ratings regarding employee satisfaction with performance 

management and the adequacy of mission support resources.

To maintain organizational excellence in support of Goals 1 and 2, the Commission provides its employees with 

a host of tools and services to meet their needs and equip them for mission accomplishment. These tools and 

services include, among other things, information technology to streamline assigned work processes and facilitate 

telework, competency-based training, knowledge management, and a safe and secure working environment. Since 

these tools and services are designed to meet employee needs and enable performance, they should have a positive 

impact on employee satisfaction. The Commission analyzes data generated from the Federal Employee Viewpoint 

Survey (FEVS) in order to assess employee satisfaction with performance management and the adequacy of 

employee-related services. In addition, the Commission uses this feedback to formulate corrective actions and 

improve the tools and services provided to employees. Accordingly, increases in favorability ratings on the FEVS 

provide a measure of FERC’s performance in this regard and serve as an indication of its effectiveness in achieving 

Objective 3.2. 

External Factors Affecting the Measure Results

There are no significant external factors.
31

Objective 3.3 Facilitate public trust 

and understanding of Commission 

activities by promoting transparency, 

open communication, and a high 

standard of ethics. 

Facilitating understanding of how the Commission carries 

out its responsibilities and maintaining public trust 

in the Commission are important components of the 

Commission’s commitment to organizational excellence. 

Trust and understanding increase acceptance of FERC 

decisions and reduce the potential for contentiousness 

toward FERC rules and regulations, thus enabling the 

creation and enforcement of policy. The Commission 

advances this objective by promoting transparency and 

open communication with respect to conduct of the 

Commission’s business, thereby increasing awareness 

and understanding of the Commission’s activities. 

The Commission furthers this objective by cultivating 

relationships with sister government agencies and 

stakeholder groups, which supports understanding of 

Commission procedures and actions. The Commission 

also promotes a high standard of ethics, which encourages 

public confidence in the Commission’s activities and 

ability to fulfill its responsibilities.

Core Functions

To carry out the key responsibilities incumbent in this 

objective, FERC maintains a high degree of capability to 

perform the following core functions.

Core Function 1: Maintain processes and 

public information services in accordance 

with the principles of transparency and open 

communication.

Promoting transparency and open communication with 

respect to conduct of the Commission’s business facilitates 
32

Federal Energy 

Regulatory Commission

both understanding of how the Commission carries out 

its responsibilities and public trust in the Commission. 

Indeed, transparency and open communication are the 

primary means by which the Commission ensures that 

regulated entities and other interested stakeholders 

have access in a timely manner to accurate information 

about the Commission’s activities. The Commission 

demonstrates its commitment to transparency and open 

communication in many ways.

As discussed above, the Commission bases its decisions 

on the evidentiary record in a given proceeding. To 

ensure due process in the development of the evidentiary 

record, highly trained Commission staff prepares 

notices that promptly announce incoming filings and 

establish a deadline for other interested stakeholders to 

submit comments or protests to those filings. To further 

promote transparency, such filings are inputted into the 

Commission’s document repository and are available 

online for public view. Moreover, the Commission issues 

a bi-weekly public notice to make the public aware of 

any off-the-record communications to Commission staff 

that could influence the Commission’s decision-making 

process.

The Commission votes on many of its orders at monthly 

meetings that are open to the public. Each such meeting 

is announced with a notice that meticulously and with 

great detail lists all matters to be considered by the 

Commission for public vote, as well as the time, place, and 

contact person for the meeting. This notice is formally 

issued and published seven days prior to the meeting it is 

announcing. The Commission also votes on some orders 

between its monthly meetings. In either circumstance, 

the Commission’s order is inputted promptly to the 

Commission’s document repository and is available online 

for public view.

In addition to these procedures, the Commission pursues 

proactive engagement and relationship building with 

regulated entities and other interested stakeholders. 

Commission staff frequently address questions from other 

government agencies at the federal and state level, as well 

as from the media and the public at large.

The Commission also responds to inquiries under the 

Freedom of Information Act (FOIA) with a focus on 

transparency and open communication. The Commission 

releases information to the greatest extent possible, 

while recognizing the need for certain information to 

be withheld from disclosure consistent with statutory 

exemptions. The extensive experience of Commission 

staff with respect to both FOIA and the Commission’s 

processes enables prompt issuance of prudent 

determinations.

Core Function 2: Develop and maintain 

internal processes and services that promote 

high standards of ethics.

To ensure public trust in the exercise of FERC’s regulatory 

authority, the Commission promotes and demonstrates a 

high standard of ethics. The Commission’s ethics program 

ensures that employees’ activities conform to statutes and 

regulations relating to conflicts of interest and standards 

of conduct for federal employees. The Commission also 

utilizes innovative annual ethics training, which has been 

recognized repeatedly for excellence among government 

agencies, to promote an ethically informed workforce. The 

Commission manages the financial disclosure processes, 

established by 5 U.S.C. §§ 101-111, through review of 

employees’ financial disclosure reports to avoid, detect or 

resolve conflicts and to promote compliance with relevant 

statutory and associated regulatory requirements.
33

Performance Measure

The following measures will be used to indicate FERC’s performance toward Objective 3.3

Measure 1: Percent of Commission filings and issuances that are disseminated to the 

public within established timeframes.

Timely communication with stakeholders helps to demonstrate a spirit of transparency and openness that is 

essential to maintaining public trust and understanding. Accordingly, FERC has established timeframes for 

responding to requests for information, for disseminating policy decisions and actions, for the issuance of 

approved orders, and for public notification of filings submitted to the Commission as well as Off-the-Record 

Communication (Ex Parte) submitted to and from the Commission. The extent to which FERC meets these 

timelines is an indication of its performance with regard to timely communication and serves as an indicator of the 

Commission’s effectiveness in achieving Objective 3.3. 

External Factors Affecting the Measure Results

There are no significant external factors.

35

Appendix A: Future Challenges

A

The Commission faces a number of external and internal challenges in its efforts to meet its strategic goals and 

objectives. 

External Factors 

Market Dynamics 

While the Commission seeks to encourage investment 

in energy infrastructure by establishing rules that allow 

for non-discriminatory market access to all resources, the 

financial community may decide that other investments 

are better uses of limited capital. 

Several factors affect the supply and demand for energy 

which, in turn, affect the business operations of the public 

utilities subject to the Commission’s jurisdiction and 

their responses to Commission policies. For example, as 

noted below, changes in power supply may be driven by 

technological developments, governmental actions, and 

other factors. Changes in economic conditions also affect 

the supply and demand for energy and the related need for 

energy infrastructure investment. State and federal agency 

jurisdiction for electric and oil transmission infrastructure 

and weather conditions affect demand for electricity and 

natural gas. Severe weather can damage existing energy 

infrastructure and impede the use and development of 

new facilities.

Stakeholder Actions 

The Commission encourages the development of 

competitive markets by approving efficient market rules, 

reducing barriers to participation by all supply-side 

and demand-side resources, and preventing the exercise 

of market power. However, the Commission cannot 

control the actions or preferences of individual market 

participants. Support for particular types of products 

or resources will be driven by consumer demand and, 

as a result, markets may develop in different ways and 

at a different pace. The Commission encourages broad 

stakeholder participation in the development of new 

regulatory programs and market rules. However, the 

ability and willingness of stakeholders to engage in the 

process of identifying and implementing reforms is 

beyond the control of the Commission. 

Government Actions 

Congress or state legislatures could enact legislation that 

affects the Commission or the actions of Commissionregulated entities. Other governmental actors at the 

federal or state level could take actions that affect the 

desire of regulated entities to invest in new technologies 

and other resources or that otherwise affect policies 

pursued by the Commission.

Technology 

Technological changes may affect the development of 

energy resources and, in turn, alter outcomes in markets 

and use of infrastructure subject to the Commission’s 

jurisdiction. The ability of companies to enhance 

operational efficiency will also be driven in part by 

advancements in technology. Advances in technology also 

may introduce both opportunities for improvement of 

and additional vulnerabilities with respect to security of 

jurisdictional infrastructure.

Hazards, Threats, Incidents 

FERC has a responsibility to ensure the safe, secure, and 

reliable operations of the energy infrastructure within its 

jurisdiction. This includes overseeing the enforcement 

of safety requirements and reliability standards. It also 

includes the identification and advancement of practices 

to protect against cyber and physical security threats. 

Natural disasters and major incidents, both accidental 

and intentional, can shift public opinion and identify 

gaps in current requirements and standards. The changing 

capabilities and intentions of those who might seek to 

undermine this infrastructure continually introduce 

new security threats. As a result, the safety, security, and 

reliability of the energy infrastructure is a moving target 

and a constantly evolving challenge.
36

Federal Energy 

Regulatory Commission

Economy 

FERC strives to achieve just and reasonable rates, terms, 

and conditions. In doing so, FERC considers the needs of 

both energy consumers and energy suppliers. In addition, 

economic conditions may affect the economic viability of 

various infrastructure investments and as a result can shift 

FERC’s workload in terms of the nature and quantity of 

applications it receives. 

Internal Factors 

The Commission’s ability to meet its strategic goals also 

depends on using its resources productively and efficiently. 

The Commission’s most valuable resource is its staff, which 

includes highly qualified economists, attorneys, engineers, 

scientists, policy and industry analysts, information 

technology experts, administrative staff and other experts. 

The Commission’s ability to recruit, hire, train, motivate, 

and retain qualified staff in a competitive job market is 

critical to its ability to meet its strategic goals. Technology 

also drives the ability of the Commission to gather and 

analyze data regarding energy markets. The Commission 

must continue to upgrade its own infrastructure in order 

to achieve its strategic goals.
37

Appendix B: Statutory Authorities

B

Electric, Hydropower, and General Statutes 

Federal Power Act (FPA) 

Energy Policy Act of 2005 (EPAct 2005) 

Energy Policy Act of 1992 

Power Plant and Industrial Fuel Use Act 

Department of Energy Organization Act 

Electric Consumers Protection Act (ECPA) 

Electronic Freedom of Information Act of 1996 

Energy Independence and Security Act of 2007 (EISA) 

Public Utility Holding Company Act of 2005 (PUHCA) 

Public Utility Regulatory Policies Act of 1978 (PURPA) 

Small Business Regulatory Enforcement Fairness Act of 

1996 (SBREFA) 

Information Technology Management Reform Act of 

1996 (ITMRA/Clinger-Cohen Act) 

Natural Gas Statutes 

Natural Gas Act 

Natural Gas Policy Act of 1978 

Alaska Natural Gas Pipeline Act of 2004 

Energy Policy Act of 2005 (EPAct 2005) 

Alaska Natural Gas Transportation Act of 1976 

Outer Continental Shelf Lands Act of 1978 (OCSLA) 

Natural Gas Wellhead Decontrol Act of 1989 (NGWDA) 

Oil Statutes 

Interstate Commerce Act 

Energy Policy Act of 1992 

Environmental and Other Statutes 

Clean Air Act 

Clean Water Act 

Rivers and Harbors Act 

Endangered Species Act 

Wild and Scenic Rivers Act 

Coastal Zone Management Act 

National Historic Preservation Act 

Fish and Wildlife Coordination Act 

National Environmental Policy Act (NEPA)
38

Federal Energy 

Regulatory Commission

Appendix C: Organization Chart

C

Office of Electric Reliability Office of Enforcement

Office of Energy Projects Office of Energy Market

Regulation

Office of Energy Policy

and Innovation

Office of Energy

Infrastructure Security

Office of Administrative

Litigation Office of the General Counsel

Office of the Executive

Director

Office of Administrative Law

Judges and Dispute Resolution

Office of the Secretary Office of External Affairs

Commissioner

New York

Regional Office

Commissioner Commissioner Commissioner

Atlanta

Regional Office

Chicago

Regional Office

Portland

Regional Office

San Francisco

Regional Office

Chairman

Hagerstown, MD

Satellite Office
39

Appendix D: FERC’s Responsibilities

D

What FERC Does:

" Regulates the transmission and wholesale sales of 

electricity in interstate commerce

" Reviews certain mergers and acquisitions and 

corporate transactions by electricity companies

" Regulates the transportation and sale of natural gas 

for resale in interstate commerce

" Regulates the transportation of oil by pipeline in 

interstate commerce

" Approves the siting and abandonment of interstate 

natural gas pipelines and storage facilities

" Reviews siting applications for electric transmission 

projects under limited circumstances

" Ensures the safe operation and reliability of proposed 

and operating LNG terminals

" Licenses and inspects private, municipal and state 

hydroelectric projects

" Protects the reliability of the high-voltage interstate 

transmission system through mandatory reliability 

standards

" Monitors and investigates energy markets

" Enforces FERC regulatory requirements through 

imposition of civil penalties and other means

" Oversees environmental matters related to natural gas 

and hydroelectricity projects and other matters

" Administers accounting and financial reporting 

regulations and conduct of regulated companies

What FERC Does Not Do:

Many areas outside of FERC’s jurisdictional responsibility 

are dealt with by state public utility commissions. 

Examples of areas considered outside of FERC’s 

responsibility include:

" Regulation of retail electricity and natural gas sales to 

consumers

" Approval for the physical construction of electric 

generation facilities

" Regulation of many activities of state and municipal 

power systems, federal power marketing agencies, and 

most rural electric cooperatives

" Regulation of nuclear power plants

" Issuance of state water quality certificates

" Oversight for the construction of oil pipelines

" Abandonment of service as related to oil facilities

" Mergers and acquisitions as related to natural gas and 

oil companies

" Responsibility for pipeline safety or for pipeline 

transportation on or across the Outer Continental 

Shelf

" Regulation of local distribution of electricity and 

natural gas

" Development and operation of natural gas vehicles

" Reliability problems related to failures of local 

distribution facilities

" Tree trimming near local distribution power lines in 

residential neighborhoods


For additional information on the

Strategic Plan, please contact:

Office of External Affairs

888 First Street, NE

Washington, D.C. 20426

202-502-6088

1-866-208-3372 (toll-free)

TTY: 202-502-8659

www.FERC.gov