The Federal Power Commission was organized as an independent commission in its present form by the act approved June 23, 1930 (46 Stat. 797). The Commission was originally created in 1920 by the Federal Water Power Act, approved June 10, 1920 (41 Stat. 1063; 16 USC 791-823), providing for the licensing by the Commission of hydroelectric projects on United States Government lands or on navigable waters of the United States. The Federal Water Power Act was amended March 3, 1921, to exclude water power projects in national parks or national monuments (41 Stat. 1353). By title II of the Public Utility Act of 1935, approved August 26, 1935, (49 Stat. 838; 16 U.S.C. Sup. IV, 791a-825r), the original Federal Water Power Act with certain amendments was made part I of the Federal Power Act and parts II and III were added, vesting the Commission in addition with jurisdiction over the transmission and sale at wholesale of electric energy in interstate commerce and public utilities engaged therein.

Other jurisdictional statutes of the Commission are: Natural Gas Act , approved June 21, 1938 (52 Stat. 821; 15 U.S.C. 717-717W), giving jurisdiction over the transportation and sale of natural gas in interstate commerce for resale and natural gas companies engaged therein, as amended February 7, 1942 (56 Stat. 83; 15 U.S.C. 717f); Tennessee Valley Authority Act , approved May 18, 1933 (48 Stat. 58; 16 U.S.C. 831-831dd), sections 12a, 14, 15, 15a, 15c, 26a, as added or amended (49 Stat. 1076, 1077, 1078, 1079, 53 Stat. 1083; 16 U.S.C. 831k, 831m, 831n, 831n-3, 831y); Bonneville Act, approved August 20, 1937 (50 Stat. 731; 16 U.S.C. 832-832L); Fort Peck Act, approved May 18, 1938 (52 Stat. 403; 16 U.S.C. 833-833k); Flood Control Act of 1938, approved June 28, 1938 (52 Stat. 1215, 1216; 33 U.S.C. 701j); Flood Control Act of 1939, approved August 11, 1939 (53 Stat. 1415; 33 U.S.C. 701b-4); Flood Control Act of 1941, approved August 18, 1941 (55 Stat. 639; 33 U.S.C. 701j); Boulder Canyon Project Act, approved December 21, 1928 (45 Stat. 1057; 43 U.S.C. 617-617t); Act Relating to Fort Apache and White Mountain Indian Reservations, approved February 28, 1929 (45 Stat. 1344); acts relating to Flathead Indian Reservation, approved March 7, 1928 (45 Stat. 200, 212-213) and amended March 4, 1929 (45 Stat. 1623, 1639-1640); Inflation Control Act of 1942 , approved October 2, 1942 (56 Stat. 765; 50 U.S.C. 961).

Executive Order 8202, dated July 13, 1939, authorized and requested the Federal Power Commission to perform certain functions relating to the transmission of electric energy between the United States and foreign countries and to the exportation and importation of natural gas from and into the United States. Executive Order 9165, dated May 19, 1942, designated the Federal Power Commission to perform certain specified duties in the development and execution of the Facility Security Program with reference to power, gas irrigation water, and related facilities and anti-sabotage measures. Executive Order 9437, dated April 18, 1944, revoked Executive Order 9165, but stated that such revocation shall not be deemed to preclude any necessary cooperative arrangement with respect to facility security between the War Department and any agency such as the Federal Power Commission named in paragraph 3 of Executive Order 9165. Executive Order 9328, dated April 8, 1943, directed the attention of the Federal Power Commission, as a Federal rate regulatory authority, to the stabilization program so that rate increases will be disapproved and rate reductions effected "in order to keep down the cost of living and effectuate the purposes of the stabilization program." Executive Order 9373, dated August 30, 1943, requires approval by the Federal Power Commission of rates for sale of electric energy from the Grand River, Denison, and Norfork Projects by the Secretary of the Interior.