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Enforcement Arrow Prohibition of Energy Market Manipulation

 
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Prohibition of Energy Market Manipulation


July 30, 2013 - FERC, JP Morgan Unit Agree to $410 Million in Penalties, Disgorgement to Ratepayers News Release | Commissioners' Statements: Clark | Stipulation and Consent Agreement PDF

July 16, 2013 - FERC Orders $453 Million in Penalties for Western Power Market Manipulation News Release | Order Assessing Penalties PDF

March 22, 2013 - FERC Approves Market Manipulation Settlement with Rumford Paper Co. in connection with the ISO-NE Day-Ahead Load Response Program Decision PDF

February 1, 2013 - FERC Approves Market Manipulation Settlement with Oceanside Power in connection with the PJM Up-To Congestion Transactions investigation Decision PDF

January 22, 2013 - FERC Approves Market Manipulation Settlement with Deutsche Bank News Release | Stipulation and Consent Agreement PDF

December 20, 2012 - Item E-4: FERC to have access to eTag information Chairman's Statement | Order No.771 PDF

November 19, 2012: FERC Approves Market Manipulation Settlement with Gila River News Release | Stipulation & Consent Agreement PDF

October 31, 2012: FERC issues Order to show cause and notice of proposed penalty to Barclays Bank PLC Order PDF

July 17, 2012: FERC issues Orders to show cause and notices of proposed penalties to four entities in connection with the ISO-NE Day-Ahead Load Response Program Rumford Order PDF | Lincoln Order PDF | Competitive Energy Services Order PDF | Silkman Order PDF

March 9, 2012: FERC approves Settlement between Enforcement and Constellation Energy Commodities Group Stipulation & Consent Agreement PDF


Conduct involving fraud and market manipulation poses a significant threat to the markets overseen by the Commission and is an enforcement priority.  Such intentional misconduct undermines the Commission’s goal of providing efficient energy services at a reasonable cost because the losses imposed by such actions ultimately are passed on to consumers.  Similarly, anticompetitive conduct and conduct that threatens market transparency undermine confidence in the energy markets and damage consumers and competitors.  Such conduct might involve the violations of rules designed to limit market power or to ensure the efficient operation of regulated markets.  Of particular concern to the Commission are cases involving the greatest harm to the public, where there is often significant gain to the violator or loss to the victims of the misconduct.

Under 18 C.F.R. 1c External Link it is unlawful for any entity, directly or indirectly, in connection with the purchase or sale of electric energy or natural gas or the purchase or sale of transmission or transportation services subject to Commission jurisdiction:

  1. To defraud using any device, scheme or artifice (i.e. intentional or reckless conduct);
  2. To make any untrue statement of material fact or omit a material fact; or
  3. To engage in any act, practice or course of business that operates or would operate as a fraud or deceit.


In certain instances, investigation of alleged manipulation has resulted in Enforcement staff closing investigations where a violation was not found, and the Commission has authorized release of staff reports to provide information on fraud and manipulation to the public. In other instances, the Commission has approved settlements or set manipulation cases for hearing.


CONTACT
Enforcement Hotline
Telephone: 202-502-8390
Toll-free: 1-888-889-8030
FAX: 202-208-0057
Email: hotline@ferc.gov

US Mail:
888 First St. NE - 5th Floor
Washington, DC 20426

QUICK LINKS
Notices of Alleged Violations Settlements


Updated: July 30, 2013