Final answer:
The Federal Energy Regulatory Commission (FERC) is the federal agency formed in 1977 that consolidated regulations of the energy industry, streamlining the supervision of interstate transmission of electricity and natural gas as well as the licensing of hydropower projects.
Step-by-step explanation:
The federal agency formed in 1977 that now combines regulations of other aspects of the energy industry, which were previously scattered under several different agencies, is the Federal Energy Regulatory Commission (FERC). Before the establishment of FERC, regulation of energy industries was dispersed among various organizations. The formation of FERC marked a significant shift in federal energy policy, aiming to streamline and consolidate oversight of the country's energy sectors. This commission is responsible for supervising the transmission and wholesale sale of electricity and natural gas in interstate commerce as well as reviewing proposals to build liquefied natural gas terminals and interstate natural gas pipelines and licensing hydropower projects.
The establishment of the FERC also occurred during an era that saw a wave of deregulation in various industries, including telecommunications, airlines, trucking, banking, and electricity. This deregulation was intended to reduce government restrictions on market entries, pricing, and production capacities, based on improvements in production technologies and a growing belief that markets could efficiently provide services.