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APPA applauds FERC action in JP Morgan, Barclays Bank market manipulation cases


From the August 1, 2013 issue of Public Power Daily

Originally published August 1, 2013

By Jeannine Anderson
Editor

APPA issued a statement yesterday commending the Federal Energy Regulatory Commission for its recent efforts to address manipulation in centralized wholesale electricity markets operated by regional transmission organizations, including the landmark settlement announced on July 30 with JP Morgan Ventures Energy Corp. (see the July 31 Public Power Daily) and the issuance of penalties against Barclays Bank PLC on July 16.

The association said it "especially appreciates FERC’s inclusion of disgorgement of unjust profits in recent anti-manipulation enforcement actions, in an attempt to ensure that those end use electric consumers that overpaid receive appropriate redress."  

All of FERC’s actions concerning market manipulation over the past two years occurred within wholesale electricity markets operated by RTOs. APPA said it is concerned that RTO-administered wholesale energy markets continue to be "susceptible to such manipulation, due to their complex rules, opacity, price volatility and limited number of active players."

APPA urged FERC to police such markets vigorously and also to look at whether the rules RTOs operate under can be improved to minimize opportunities for gaming and abuse. The statement is posted in the Newsroom section of the APPA website.


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