Certified Energy Manager Practice Exam

What is one primary mandate of the Federal Energy Regulatory Commission (FERC)?

1. To oversee public transportation

2. To regulate and oversee energy industries

3. To manage natural resource exploration

4. To enforce energy pricing laws

The correct answer is: To regulate and oversee energy industries

The Federal Energy Regulatory Commission (FERC) has the primary mandate to regulate and oversee the energy industries in the United States. FERC’s responsibilities include the regulation of the transmission and wholesale sale of electricity and natural gas in interstate commerce. Additionally, it plays a critical role in the licensing of hydropower projects and ensuring that energy markets operate fairly and efficiently. This oversight helps maintain a reliable energy supply and promotes competition among energy providers while protecting consumer interests. In contrast, the other options do not align with FERC’s main functions. Oversight of public transportation pertains to different regulatory bodies, management of natural resource exploration falls under other government agencies such as the Bureau of Land Management or the Department of Energy, and enforcement of energy pricing laws, while related, is part of a broader regulatory framework that FERC participates in through its oversight responsibilities but is not its sole mandate. FERC's focus is specifically on energy regulation, which includes these various elements but is primarily centered on ensuring fair practices within the energy industry.