Three chief agencies are involved in energy regulation in California:
California Public Utilities Commission (CPUC or PUC)
The CPUC regulates California’s privately owned electric, natural gas, water, telecommunications, railroad, rail transit, and passenger transportation companies. Specifically relating to energy, the CPUC plays a key role in making California a national and international leader on a number of clean energy initiatives and policies designed to benefit consumers, the environment, and the economy. Five commissioners make up the CPUC, who are appointed by the Governor, confirmed by the Senate and serve six-year staggered terms.
The responsibilities of the CPUC include:
- Setting electric rates
- Protecting consumers
- Promoting energy efficiency
- Ensuring electric system reliability
California Energy Commission (CEC)
The CEC is California’s primary agency for energy policy and planning. Five commissioners make up the CEC, who are appointed by the Governor, confirmed by the Senate and serve five-year staggered terms.
The responsibilities of the CEC include:
- Forecasting future energy needs and keeping historical energy data
- Siting and licensing thermal power plants 50 megawatts ( MW) or larger to meet statewide energy needs
- Promoting energy efficiency by setting California's appliance and building standards and working with local governments to enforce those standards
- Supporting public interest research that advances energy science and technology via research, development and demonstration (RD&D) programs
- Supporting renewable energy by providing market support to existing, new and emerging renewable technologies, which includes providing incentives for small wind and fuel cell electricity systems and providing incentives for solar electric systems in new home construction
- Implementing California's Alternative and Renewable Fuel and Vehicle Technology Program
- Planning for and directing state response to energy emergencies
Federal Energy Regulatory Commission (FERC)
FERC regulates the interstate transmission of electricity, natural gas and oil. Up to five commissioners make up FERC, who are appointed by the President of the United States with the advice and consent of the Senate and serve five-year terms.
The responsibilities of FERC include:
- Regulating the transmission and wholesale sales of electricity in interstate commerce
- Regulating the transmission and sale of natural gas for resale in interstate commerce
- Regulating the transmission of oil by pipeline in interstate commerce
- Licensing and inspecting private, municipal and state hydroelectric projects
- Approving the siting and abandonment of interstate natural gas pipelines and storage facilities, and ensuring the safe operation and reliability of proposed and operating liquefied natural gas ( LNG) terminals
- Ensuring the reliability of the high voltage interstate transmission system
- Monitoring and investigating energy markets
- Using civil penalties and other means against energy organizations and individuals who violate FERC rules in the energy markets
- Overseeing environmental matters related to natural gas and hydroelectricity projects and major electricity policy initiatives
- Administering accounting and financial reporting regulations and conduct of regulated companies
