To access the significant orders and federal district court papers related to all matters that have proceeded to Orders to Show Cause, see the Orders to Show Cause Proceedings page.
| Subject(s) of Investigation and Order | Sanctions, including Civil Penalties, Disgorgement, and Compliance Measures | Description of Findings of Violations |
|---|---|---|
| Golden Spread Electric Cooperative, Inc. (Golden Spread), Docket No. IN21-9-000, Order Approving Stipulation and Consent Agreement, 177 FERC ¶ 61,109 (Nov. 18, 2021). | Civil Penalty to the United States of $550,000; disgorgement and interest to the Southwest Power Pool, Inc. (SPP) of $375,000; annual compliance monitoring reporting; enhancements to Golden Spread’s compliance program, including additional training. | The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Golden Spread. The Agreement resolves the investigation Enforcement conducted under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2021), into whether Golden Spread violated the Commission’s Anti-Manipulation Rule, 18 C.F.R. § 1c.2 (2021), by offering its Mustang Station generating unit into SPP’s market in a manner that improperly targeted and increased Day-Ahead Market make whole payments. Golden Spread stipulates to the facts set forth in the Agreement, but neither admits nor denies a violation. |
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GreenHat Energy, LLC, Luan Troxel in her capacity as Executor for the Estate of Andrew Kittell, John Bartholomew, and Kevin Ziegenhorn, Docket No. IN18-9-000, Order Assessing Civil Penalties, 177 FERC ¶ 61,073 (Nov. 5, 2021) Prior Commission Activity: GreenHat Energy, LLC, Estate of Andrew Kittell, John Bartholomew, and Kevin Ziegenhorn, Docket No. IN18-9-000, Order to Show Cause, 175 FERC ¶ 61,138 (May 20, 2021) |
Civil Penalties to the United States as follows: GreenHat Energy, LLC ($179,600,573); John Bartholomew ($25,000,000); Kevin Ziegenhorn ($25,000,000). Disgorgement to PJM Interconnection, LLC of $13,072,428, jointly and severally by all Respondents. | The Commission determined that GreenHat Energy, LLC (GreenHat), John Bartholomew, Kevin Ziegenhorn, and Andrew Kittell, represented by the Executor of his Estate, violated section 222 of the Federal Power Act (FPA) and section 1c.2 of the Commission’s regulations by engaging in a manipulative scheme in the Financial Transmission Rights market operated by PJM Interconnection, L.L.C. (PJM). The Commission also determined that GreenHat violated Attachment Q, Section Ia.B of the PJM Open Access Transmission Tariff and section 15.1.3 of PJM’s Amended and Restated Operating Agreement. The Commission assessed civil penalties in the following amounts: $179,600,573 against GreenHat, $25 million against Bartholomew, and $25 million against Ziegenhorn. The Commission also directed GreenHat, Bartholomew, Ziegenhorn, and the Kittell Estate, jointly and severally, to disgorge unjust profits of $13,072,428, plus applicable interest. |
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Houlian Chen,
Prior Commission Activity: Order to Show Cause and Notice of Proposed Penalty, 149 FERC ¶ 61,261 (Dec. 17, 2014) Order Revising Show Cause Order 149 FERC ¶ 61,263 (Dec. 18, 2014) Notice of De Novo Election (Jan. 12, 2015) Order Assessing Civil Penalties, 151 FERC ¶ 61,179 (May 29, 2015) Petition for an Order Affirming FERC’s Order Assessing Civil Penalties (Case No. 3:15-cv-0452) (July 31, 2015). |
Disgorgement of $600,000 to PJM from the Chen Defendants; Trader ban of 2 years from Commission-jurisdictional markets. | The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and the Chen Defendants (Houlian Chen, HEEP Fund, LLC, and CU Fund, Inc.). The Agreement resolves the litigation between the Chen Defendants and the Commission for violations of section 222 of the Federal Power Act (FPA) and 18 C.F.R. § 1c.2. On October 25, 2021, Enforcement and the Chen Defendants agreed to terms that would resolve the Commission’s claims against the Chen Defendants. The Chen Defendants neither admitted nor denied liability and agreed to: (1) pay PJM disgorgement $600,000 based on a demonstrated inability to pay; (2) a trader-ban of 2 years from Commission-jurisdictional markets; and (3) a factual stipulation accompanied by an agreement to testify in the case. The settlement agreement in no way alters the Commission’s ongoing claims against Powhatan. |
| Terra-Gen, LLC (Terra-Gen), Docket No. IN21-7-000, Order Approving Stipulation and Consent Agreement, 176 FERC ¶ 61,071 (Aug. 2, 2021) |
Civil Penalty to the United States of $510,962.43; disgorgement to the California Independent System Operator (CAISO) in the amount of $117,231; and annual compliance monitoring reporting. | The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Terra-Gen. The Agreement resolves the investigation conducted by Enforcement into whether Terra-Gen violated 18 C.F.R. § 35.41(b) by submitting false or misleading information to CAISO about the physical capabilities of the wind-powered electric generation facility, owned by Terra-Gen’s subsidiary Cameron Ridge, LLC (Cameron Ridge) and whether Terra-Gen, through Cameron Ridge, violated CAISO Tariff § 4.2.1 by deviating its wind farms’ output from CAISO’s Dispatch Instructions. Terra-Gen stipulates to the facts set forth in the Agreement, but neither admits nor denies the violation. |
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Shell Energy North America (US), L.P. , Docket No. IN21-8-000, Order Approving Stipulation and Consent Agreement, 175 FERC ¶ 61,201 (June 15, 2021) |
Civil Penalty of $951,683, disgorgement of $48,317 plus interest, and annual compliance monitoring reporting for two years. | On June 15, 2021, the Commission approved a Stipulation and Consent Agreement (Agreement) between FERC’s Office of Enforcement (Enforcement) and Shell Energy North America (US), L.P. (SENA). In the Order, the Commission found the settlement is in the public interest because the Agreement resolves on fair and equitable terms Enforcement’s investigation under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2020), into whether SENA engaged in a related-positions fraudulent scheme involving physical trading for the purpose of benefiting related financial positions during the May 2016 bidweek (April 25-29, 2016), in violation of section 4A of the Natural Gas Act (NGA), 15 U.S.C. § 717c-1, and the Commission’s Anti-Manipulation Rule, 18 C.F.R. § 1c.1. SENA stipulates to the facts set forth in Section II of the Agreement, but neither admits nor denies the alleged violations. SENA also agrees to annual compliance monitoring for two years. |
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Boyce Hydro Power, LLC, Docket No. P-10809-050, Order Assessing Penalty, 175 FERC ¶ 61,049 (April 15, 2021) Prior Commission Activity: Boyce Hydro Power, LLC, Order to Show Cause and Notice of Proposed Penalty, 173 FERC ¶ 61,217 (December 9, 2020) |
Civil Penalty of $15,000,000. | On April 15, 2021, the Commission assessed a civil penalty of $15 million against Boyce Hydro Power, LLC, licensee of three hydropower projects in Michigan, for violating numerous FERC staff orders and license provisions addressing safety of project facilities and surrounding communities following catastrophic failures of two of its dams. Specifically, Boyce Hydro failed to begin a required forensic study of the dam failures and ignored staff’s orders to conduct engineering safety studies and to file certain required reports to ensure homes and other buildings surrounding the Boyce Projects were not at risk of further damage. |
| Alliance NYGT LLC, Docket No. IN21-4-000, Order Approving Stipulation and Consent Agreement, 174 FERC ¶ 61,086 (Feb. 8, 2021) | Civil Penalty of $420,000, disgorgement of $463,974.28, inclusive of interest and annual compliance monitoring reporting. |
On February 8, 2021, the Commission approved a Stipulation and Consent Agreement (Agreement) between FERC’s Office of Enforcement (Enforcement) and Alliance NYGT LLC (NYGT). In the Order, the Commission found the settlement is in the public interest because the Agreement resolves on fair and equitable terms Enforcement’s investigation under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2020), into whether NYGT submitted offers and information to the New York Independent System Operator (NYISO) that did not accurately reflect the fuel used to run its generators, failed to respond to NYISO’s inquiries regarding the type of fuel required and used to run its generators, and omitted material information from its responses to NYISO about its fuel use. NYGT stipulated to the facts and admitted that it violated 18 C.F.R. § 35.41(a)-(b) (2020) and several provisions of the NYISO Market Administration and Control Services Tariff. NYGT also agrees to submit annual compliance reports. |
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Freeport LNG Development, L.P., Docket No. IN17-7-000, Order Approving Stipulation and Consent Agreement, 174 FERC ¶ 61,055 (Jan. 28, 2021) Prior Commission Activity: Order Granting Construction of LNG Facility, Freeport LNG Dev., L.P., 107 FERC ¶ 61,278 (Jun. 18, 2004) Order Granting Construction of LNG Export Terminal, Freeport LNG Dev., L.P. et al., 148 FERC ¶ 61,076 (Jul. 30, 2014) |
Civil Penalty of $550,000. | On January 28, 2021, the Commission approved a Stipulation and Consent Agreement (Agreement) between FERC’s Office of Enforcement (Enforcement) and Freeport LNG Development, L.P. (Freeport). In the Order the Commission found the settlement is in the public interest because the Agreement resolves on fair and equitable terms Enforcement’s investigation under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2020), into whether Freeport violated Section 3(e) of the Natural Gas Act (NGA) (15 U.S.C. § 717b(e) (2012)) and the Commission’s Order in Freeport LNG Dev., L.P., 148 FERC ¶ 61,076 (2014) by clearing and stabilizing a portion of its site without prior Commission authorization and failing to provide a complete and accurate account of that violation. Freeport stipulates to the facts set forth in Section II of the Agreement, but neither admits nor denies the alleged violations. |
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Tres Palacios Gas Storage LLC, Docket No. IN21-3-000 Order Approving Stipulation and Consent Agreement, 174 FERC ¶ 61,060 (Jan. 19, 2021) Order Issuing Certificates, Tres Palacios Gas Storage LLC, 120 FERC ¶ 61,253 (Sept. 20, 2007) Order Granting In Part and Denying in Part Abandonment, Tres Palacios Gas Storage LLC, 160 FERC ¶ 61,107 (Sept. 21, 2017) |
Civil Penalty to the United States of $700,000 and annual compliance monitoring reporting. | The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Tres Palacios LLC (Tres Palacios). The Agreement resolves the investigation conducted by Enforcement into whether Tres Palacios violated the terms of the Commission’s Order Issuing Certificates and section 7(e) of the Natural Gas Act by failing to timely conduct sonar surveys are required. Tres Palacios admits the facts set forth in the Agreement, but neither admits nor denies the violation. |
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NRG Power Marketing, LLC, Docket No. IN20-4-000, Order Approving Stipulation and Consent Agreement, 174 FERC ¶ 61,016 (Jan. 8, 2021) |
Civil Penalty of $85,000. |
On January 8, 2021, the Commission approved a Stipulation and Consent Agreement (Agreement) between FERC’s Office of Enforcement and NRG Power Marketing, LLC (NRG). The Order resolved Enforcement’s investigation into whether NRG, the lead market participant for several capacity resources in ISO-NE’s Forward Capacity Market, violated section II.13 of the ISO-NE Tariff and section 35.41(b) of the Commission’s regulations in connection with its submission of de-list bids for certain of its capacity resources. NRG admits to the facts set forth in the Agreement, but neither admits nor denies the alleged violations. NRG also agrees to submit annual compliance reports. |
| Algonquin Power Windsor Locks LLC, Docket No. IN21-2-000, Order Approving Stipulation and Consent Agreement, 174 FERC ¶ 61,001 (Jan. 5, 2021) | Civil Penalty of $1 million and disgorgement of $1,119,073.15, inclusive of interest. | On January 5, 2021, the Commission approved a Stipulation and Consent Agreement (Agreement) between FERC’s Office of Enforcement and Algonquin Power Windsor Locks LLC (Windsor Locks). The Order resolved an investigation in which Enforcement concluded that Windsor Locks had violated the ISO-New England Tariff and section 35.41(a) of the Commission’s regulations by failing to offer MWs required by its participation the ISO-New England Forward Capacity Market and Forward Reserve Market. Windsor Locks admits to the facts set forth in the Agreement, but neither admits nor denies the alleged violation. Windsor also agrees to annual compliance monitoring. |
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