The Federal Energy Regulatory Commission has suspended the electric market-based rate authority of JP Morgan Ventures Energy Corp. for submitting false information to the Commission.
The suspension prohibits JP Morgan Ventures from selling power at market-based rates for six months effective April 1, 2013.
FERC is suspending JP Morgan Ventures’ market-based sales rate authority because the company made factual misrepresentations and omitted material information over the course of several months of communications with the California Independent System Operator (California ISO) and in filings to the Commission in connection with requests for information involving bidding activities in the California market.
The nature of JP Morgan Ventures’ violations is critically important in this case, FERC said. The Commission grants market-based rate authority to companies on the presumption that they will not engage in fraud, deception or misrepresentation. The provision of false, misleading or inaccurate information undermines the integrity of the FERC decision-making process, the smooth operation of markets and FERC’s ability to ensure just and reasonable rates for customers. The Commission continuously has warned market participants of the consequences associated with failing to abide by FERC rules and regulations.
Under today’s decision, the suspension delay to April 2013 will give the California ISO and its market participants time to take necessary steps to maintain system reliability during the suspension period. It also will give JP Morgan Ventures time to make alternative arrangements to fulfill any existing contractual obligations.
During the suspension period, JP Morgan Ventures will only be allowed to participate in wholesale electricity markets by either scheduling quantities of energy products without an associated price or by specifying a zero-price in its offer as provided in the pertinent tariffs. JP Morgan Ventures’ rate will be capped at the higher of the applicable locational marginal price or its default energy bid. Such a cap will ensure that load-serving entities have access to adequate generating capacity to serve demand. Alternatively, JP Morgan Ventures would have the option to request cost-based rates.