The U.S. Federal Energy Regulatory Commission has accused J.P. Morgan Ventures Energy Corp. of misleading regulators and said its authority to sell electricity might be suspended.
Bloomberg reports that FERC issued an order Thursday that directs the unit of New York-based JPMorgan Chase to show that it didn’t violate FERC regulations and explain why its authorization to sell electric energy and related services at market-based rates should not be suspended.
'That can be more serious than a penalty, that could be more serious than disgorging profits', said Susan Court, principal at SJC Energy Consultants LLC in Arlington, Virginia, and a former FERC enforcement director. 'That could entail a lot more money than just paying a penalty'.
The order is part of FERC’s effort to increase transparency and eliminate manipulation of the electricity market. The agency is investigating JPMorgan’s power trading in California and the Midwest. That investigation came to light when FERC went to court seeking internal e-mails from JPMorgan, saying the bids from the company might have resulted in at least $73m in improper payments to generators.
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