Documents/FERC/1: Energy Infrastructure

1: Energy Infrastructure

Promote the Development of a Strong Energy Infrastructure

Other Information:

A strong energy infrastructure is critical to the health of the U.S. economy, as evidenced by the immediate impact the 2005 hurricane season had onthe Nation’s economy. In addition, competitive and reliable energymarkets require a strong infrastructure. A strong infrastructure helps make competitive markets work by: • improving reliability; • reducing barriers to entry; • better matching of demand and supply; • improving customer access to low-cost resources; and • allowing customers to choose between multiple supply sources. The Commission has an important role in the development of a strong energy infrastructure that operates effectively and reliably. The Commission authorizes development of LNG facilities, certificates natural gas pipeline and storage projects, permits certain electric transmission lines, and licenses hydropower projects. Its work also directly affects there liability of the interstate transmission grid. Moreover, nearly two-thirds of the energy consumed by the United States is transported by pipelines, many of which are regulated by the Commission. Effective Commission regulation can help ensure the development of a strong energy infrastructure. Commission pricing policies and operating procedures influence the level of infrastructure investment. They affect the amount and efficiency of infrastructure siting and the smoothness of infrastructure operations.

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