Gila River Power admits to energy market manipulation
For the first time, an energy market participant has admitted to a violation of the Federal Energy Regulatory Commission's (FERC) anti-manipulation rule in an energy trading case.
Gila River, a subsidiary of Entegra Power Group, admitted to using wheeling-through transactions between July 2009 and October 2010 to manipulate prices in markets operated by the California Independent System Operator (California ISO), and to violating FERC regulations requiring accurate submissions to the California ISO. Gila River admitted that its wheeling-through transactions violated the California ISO tariff because it was not wheeling power through the region, and its transactions lacked a resource and a load outside the California markets as required by the tariff.
FERC has approved a settlement between its Office of Enforcement and Gila River Power for its power market manipulation. Gila River will pay a fine of $2.5 million and unjust profits of $911,553 plus interest.
- see this article
- see the Stipulation and Consent Agreement