FERC Staff Outlines Alleged Transgressions in Electric Markets Committed by JP Morgan Chase Affiliate; Then FERC Announces Settlement

摘要

With rumors in the media that a settlement may be pending, FERC staff on 7/29/13 published a formal public notice that in a “nonpublic formal investigation” the Office of Enforcement preliminarily determined that JP Morgan Ventures Energy Corp. (JPMVEC) violated the Commission’s prohibition of electric energy market manipulation, by engaging in eight manipulative bidding strategies. The day after the notice was issued, FERC approved a stipulation and consent agreement (IN11-8, IN13-5)1 under which JPMVEC will pay $410 million in penalties and disgorgement to ratepayers for allegations of market manipulation stemming from the company’s bidding activities in electricity markets in California and the Midwest from September 2010 through November 2012.