First Ever Admission Of Violation In FERC Manipulation Action

On November 19, 2012, FERC approved a settlement agreement between its Office of Enforcement and Gila River Power LLC ("Gila River") addressing market manipulation claims related to activity in California. As part of the settlement agreement, Gila River admits to violating both FERC's anti-manipulation rule, as well as FERC's regulations against providing inaccurate information. This is the first case in which a market participant has admitted to violating FERC's anti-manipulation rule in an energy trading case. In prior FERC enforcement cases resulting in settlement, market participants have neither admitted nor denied the alleged violations.

The Office of Enforcement alleges that Gila River designed transactions to benefit electricity sales in California from its 2,200 MW power plant located in Arizona. Under the terms of the settlement agreement, Gila River will pay a civil...

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