Who oversees the approval of NERC reliability standards?

The Federal Energy Regulatory Commission (FERC) is the correct entity that oversees the approval of NERC reliability standards. FERC is an independent regulatory agency that has the authority to oversee the reliability and adequacy of the nation's electricity supply. Under the Energy Policy Act of 2005, FERC was granted the responsibility to approve, reject, or remand reliability standards developed by NERC. This means that although NERC develops the standards, FERC ensures they align with federal laws and policies, thus providing a necessary regulatory check.

Understanding the roles of the other organizations can help clarify why they are not the correct answers. The Department of Energy (DOE) focuses on broader energy policies and research rather than directly overseeing reliability standards. While NERC is responsible for creating and enforcing the standards to ensure grid reliability, FERC ultimately holds the approving authority. The Environmental Protection Agency (EPA) is primarily concerned with regulations related to environmental protection and does not play a role in the approval of reliability standards for the electric grid. Thus, FERC is the key regulatory body that ensures that the standards set forth by NERC are appropriate and implementable.