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  1. BP Initial Decision: The Significance of Change

    Wednesday, August 19, 2015 8:10 am by , , and

    On August 13, 2015, the administrative law judge (“ALJ”) assigned to hear evidence in BP America Inc. et. Al (Docket No. IN13-15) issued an Initial Decision in which she found that BP America Inc., and certain of its affiliates (collectively “BP”) engaged in market manipulation by intentionally trading to influence index prices to benefit a related financial position.  Putting aside the merits of the BP case, the Initial Decision is a good reminder of the kind of circumstantial evidence that regulators might interpret as indicia of manipulation.  The reoccurring theme is CHANGE.  (more…)


  2. BP Initial Decision Adopts FERC Staff’s Positions

    Tuesday, August 18, 2015 1:17 pm by , , and

    Seven years after the Federal Energy Regulatory Commission (“FERC” or the “Commission”) first opened an investigation into the trading practices of BP America Inc. and certain of its affiliates (collectively “BP”), on August, 13, 2015, Administrative Law Judge Carmen Cintron (“ALJ Cintron”) issued her Initial Decision in the case of BP America Inc., finding that “BP engaged in market manipulation” by “intentionally [selling] large volumes of next-day physical gas at HSC in a way designed to benefit their corresponding short financial positions.”[1]  ALJ Cintron agreed with FERC Staff on all the material issues in the case, disagreeing with BP that FERC did not have jurisdiction over the case and finding BP’s defenses unpersuasive. (more…)


  3. FERC Fines Columbia Gas $350,000 for Violating Auction Rules

    Friday, July 31, 2015 9:35 am by and

    On July 30, 2015, the Federal Energy Regulatory Commission (FERC) approved a stipulation and consent agreement between the FERC Office of Enforcement and Columbia Gas Transmission LLC (Columbia Gas) for violations of Section 4 of Columbia Gas’s tariff governing auctions for firm capacity. Columbia Gas admitted the violations and agreed to a $350,000 civil penalty along with compliance improvements. (more…)


  4. Decision on Fate of BLM’s Hydraulic Fracturing Rule Expected September 2015

    Friday, July 24, 2015 10:27 am by , and

    The Bureau of Land Management’s (“BLM’s”) Hydraulic Fracturing Rule has been stayed until at least September 2015. BLM finalized the rule on March 20, 2015 for application on federal and Indian lands, three years after its initial proposal. However, on June 23, 2015 (the eve of the rule’s effective date), a federal judge in Wyoming stayed implementation of the rule siding with several industry group and state petitioners that had filed lawsuits and sought an injunction. As deadlines have now slipped, based on the current schedule, Judge Scott W. Skavdahl of the U.S. District Court for the District of Wyoming is not expected to make a final decision on the BLM Rule until September 2015. (more…)


  5. Scope of Trial De Novo Debated in Barclays Electricity Manipulation Case

    Wednesday, June 24, 2015 4:34 pm by , and

    After almost eight years since the Federal Energy Regulatory Commission (FERC) commenced its investigation against Barclays Bank PLC (Barclays) and four of its traders, Scott Connelly, Daniel Brin, Karen Levine and Ryan Smith, for allegedly manipulating the California electricity markets, Barclays filed its answer in federal district court. As expected, Barclays denied all of FERC’s substantive allegations and asserted that the District Court should give no merit to FERC’s findings of fact or legal conclusions. FERC, according to Barclays and the individual traders, must prove its case before an independent arbiter and cannot rely on anything that happened at the agency level. FERC is seeking a $435 million civil penalty against Barclays; $15 million against Connelly; and $1 million each from Brin and Levine. (more…)


  6. FERC Accepts PJM Capacity Performance Proposal

    Tuesday, June 16, 2015 2:36 pm by , and

    On June 9, 2015, FERC issued an order accepting PJM’s proposal to modify its forward capacity market, the Reliability Pricing Model (“RPM”), to establish a new capacity product, the Capacity Performance Resource.  PJM’s proposal is designed to tighten the performance standards applicable to resources that receive a capacity obligation through the RPM and is intended to address poor resource performance that has been experienced since implementation of the RPM, especially during the 2014 polar vortex.

    Once implemented, PJM’s proposal will impose more stringent performance standards on resources that receive a capacity obligation through the RPM, including imposing non-performance charges when resources fail to perform and bonus payments for over-performance. All capacity resources will be eligible to offer as Capacity Performance Resources, and demand resources, energy efficiency resources, capacity storage resources, and intermittent resources will be allowed to aggregate their capabilities in order to reliably perform during emergency conditions. A Non-Performance Charge will be assessed on resources who fail to perform during system emergencies. (more…)


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