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 |
|---|---|---|
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Black Hills Corporation, et al., Docket No. IN23-10-000, Order Approving Stipulation and Consent Agreement, 185 FERC ¶ 61,172 (December 5, 2023) |
Civil penalty of $150,000; up to two years of semi-annual status reports regarding the status of 103 previously unfiled agreements; annual compliance monitoring reports for two years after Black Hills is no longer obligated to file the semi-annual status reports |
The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Black Hills Corp. (Black Hills), as the corporate parent of, and on behalf of, its three electric public utility subsidiaries, Black Hills Power, Inc., Cheyenne Light, Fuel and Power Co., and Black Hills Colorado Electric. The Agreement resolves Enforcement’s investigation under 18 C.F.R. §1b, into whether Black Hills violated section 205 of the Federal Power Act (FPA) (§ 205) and 18 C.F.R. § 35 (Part 35), by timely failing to file 103 jurisdictional agreements. Black Hills stipulated to the facts set forth in the Agreement and admitted that it violated § 205 and Part 385 by commencing jurisdictional service, and entering into associated agreements, without providing the requisite notice. Black Hills agreed to: (1) pay a $150,000 civil penalty to the United States Treasury; (2) submit semi-annual status reports detailing the filing status of each the 103 previously unfiled agreements until the Commission accepts or finally disposes of all of the agreements or for two years after the Agreement is effective, whichever comes first; and, (3) submit annual compliance monitoring reports for two years following the Commission’s acceptance or final disposition of all of the previously unfiled agreements. |
| AES Alamitos, LLC and AES Redondo Beach, LLC, Docket No. IN23-15-000, Order Approving Stipulation and Consent Agreement, 185 FERC ¶ 61,060 (October 24, 2023) | Civil penalty in the amount of $3,030,000 to the United States Treasury; disgorgement of $2,970,000 to CAISO; compliance monitoring |
On October 24, 2023, the Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and AES Alamitos, LLC and AES Redondo Beach, LLC (collectively, AES). As set forth in the Agreement, Enforcement determined that from June 2018 to May 2020 (Relevant Period), the MW capacity indicated in Master File Pmax values for eight of the twelve Resources were not “accurate and actually based on physical characteristics of the resources” as required by CAISO Tariff section 4.6.4. The determination was based on the Resources’ consistent failure to produce to their Master File Pmax during the Relevant Period and reinforced by other evidence suggesting that AES knew or should have known that some of the Resources would be incapable of reaching their Master File Pmax. Enforcement also determined that AES violated CAISO Tariff section 37.3.1.1 by regularly bidding the Resources’ full Master File Pmax into the CAISO day-ahead and real-time energy markets and being financially compensated for RA capacity even though the Resources could not “reasonably [be] expected to be available and capable of performing at the levels specified in the Bid, and to remain available and capable of so performing.” Enforcement also found that AES violated §§ 35.41(a) and (b) of the Commission’s regulations by registering inaccurate Master File Pmax values, bidding up to the Resources’ Master File Pmax value in CAISO’s energy markets, and selling capacity through RA contracts that the Resources could not reasonably provide in violation of the CAISO Tariff. As set out in the terms of the Agreement, AES neither admits nor denies the violations, but stipulates to the facts contained in the Agreement. AES agrees to: (a) pay $2.97 million in disgorgement to CAISO to be distributed pro rata to network load; (b) pay a civil penalty of $3.03 million to the United States Treasury; and (c) submit an annual compliance monitoring report to Enforcement for two years with a third year at Enforcement’s discretion. |
| Georgia-Pacific Crossett LLC, Docket No. IN23-12-000, Order Approving Stipulation and Consent Agreement, 184 FERC ¶ 61,151 (September 13, 2023) | Civil penalty in the amount of $1,200,000 | On September 13, 2023, the Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Georgia-Pacific Crossett LLC (Georgia-Pacific). In its Order, the Commission found the settlement is in the public interest because the Agreement resolves on fair and equitable terms Enforcement’s investigation into whether Georgia-Pacific violated any Commission statutes, rules, regulations, or orders, including but not limited to 18 C.F.R. section 157, in connection with the abandonment of the 19.5 mile, 8-inch diameter interstate pipeline at issue in Commission Docket No. CP22-16. During its investigation, Enforcement concluded that Georgia-Pacific (a) violated section 7(b) of the Natural Gas Act (NGA), 15 U.S.C. § 717f(b), by abandoning the pipeline without Commission approval, and (b) violated section 157.5 of the Commission’s regulations, 18 C.F.R. § 157.5, by failing to set forth all information necessary to fully advise the Commission concerning the company’s request for approval to abandon the pipeline. In its abandonment application and in its later communications with the Commission in response to Commission information requests, Georgia-Pacific described abandonment activities that already occurred as if they would be occurring in the future. Georgia-Pacific stipulated to the facts set forth in Section II of the Agreement and neither admitted nor denied the violations described in Section III of the Agreement. |
| Big River Steel LLC and Entergy Arkansas, LLC, Docket No. IN23-11-000, Order Approving Stipulation and Consent Agreement, 184 FERC ¶ 61,111 (Aug. 21, 2023) | Civil penalty of $6,000,000 paid by Big River Steel LLC (BRS); disgorgement of $15,940,399 to Midcontinent Independent System Operator (MISO) from BRS; disgorgement of $5,033,780 to MISO from Entergy Arkansas, LLC (EAL); BRS to provide compliance training to its traders if it intends to participate again as a demand response unit in MISO |
The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement), BRS, and EAL. The Agreement resolves Enforcement’s investigation under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2022), into whether BRS’s participation in a MISO demand response program violated MISO’s Tariff or Commission regulations. EAL sponsored BRS’s participation in the program. BRS and EAL stipulate to the facts set forth in the Agreement but neither admit nor deny a violation. In addition to a civil penalty, disgorgement, and compliance training, BRS and EAL also agree that: (1) BRS and EAL will cooperate with MISO to ensure that the amounts disgorged under the Agreement are appropriately refunded and (2) EAL will make a filing with the Arkansas Public Service Commission to ensure that its customers receive a refund of the net amount they paid for BRS’s demand response participation. |
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NRG Energy, Inc., Docket No. IN23-3-000, Order Approving Stipulation and Consent Agreement, 184 FERC ¶ 61,026 (July 20, 2023) |
Civil penalty of $37,342 to the United States Treasury; disgorgement of $32,658, inclusive of interest, to PJM Interconnection, LLC; compliance monitoring for up to two years | The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and NRG Energy, Inc. (NRG). The Agreement resolves Enforcement’s investigation under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2022) into violations of Attachment K-Appendix, Section 6.6 of the PJM Interconnection, LLC Tariff and 18 C.F.R. § 35.41(a) (2022) for failing to comply with Parameter Limited Schedule requirements. NRG stipulates to the facts set forth in the Agreement but neither admits nor denies a violation. |
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BP America Inc., BP Corporation North America Inc., BP America Production Company, BP Energy Company, Docket Nos. IN13-15-000, Order Approving Stipulation and Consent Agreement, 184 FERC ¶ 61,016 (July 7, 2023) Order Addressing Arguments Raised on Rehearing, 173 FERC ¶ 61,239 (December 17, 2020), Order Staying the Payment Directives of the Order Assessing Civil Penalties, 156 FERC ¶ 61,174 (September 12, 2016), Opinion No. 549, Order on Initial Decision and Rehearing, 156 FERC ¶ 61,031 (July 11, 2016), Initial Decision, 152 FERC ¶ 63,016 (August 13, 2015), Order Establishing Hearing, 147 FERC ¶ 61,130 (May 15, 2014), Order to Show Cause and Notice of Proposed Penalty, 144 FERC ¶ 61,100 (Aug. 5, 2013)
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Civil penalty of $10,750,000 to the United States Treasury; disgorgement of $250,295 to Texas’ Low Income Home Energy Assistance Program |
The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and BP America Inc., BP Corporation North America, Inc., BP America Production Company, and BP Energy Company (collectively BP). The Agreement resolves the issues remaining after the case was remanded by the United States Court of Appeals for the Fifth Circuit, which in October 2022 affirmed in part and reversed in part the Commission’s ruling in the case. In the Agreement, BP acknowledged that the Fifth Circuit upheld the Commission’s finding of manipulation in violation of NGA section 4A and the Commission’s Anti-Manipulation Rule, 18 C.F.R. § 1c.1 as to 18 jurisdictional transactions, neither admitted nor denied liability, and agreed to: (1) a civil penalty of $10,750,000, paid to the United States Treasury; and (2) disgorgement of $250,295, paid to Texas’ Low Income Home Energy Assistance Program. |
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Pacific Summit Energy LLC (Pacific Summit), Docket No. IN23-9-000, Order Approving Stipulation and Consent Agreement, 183 FERC ¶ 61,236 (June 30, 2023) |
Civil penalty of $360,000 to the United States Treasury; disgorgement of $154,623; and compliance monitoring for two years. | The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Pacific Summit. The Agreement resolves the investigation Enforcement conducted under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2022), into whether Pacific Summit engaged in a related-positions fraudulent scheme involving physical trading at Transco Zone 6 for the purpose of benefiting related financial positions during the October 2017 Bidweek (September 25-29, 2017), 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 (2022). Pacific Summit stipulates to the facts set forth in the Agreement, but neither admits nor denies a violation. |
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Entergy Arkansas, LLC, Docket No. IN23-5-000, Order Approving Stipulation and Consent Agreement, 183 FERC ¶ 61,207 (June 22, 2023) |
Civil Penalty of $52,000 to the United States Treasury; compliance monitoring | The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Entergy Arkansas, LLC (EAL). The Agreement resolves Enforcement’s investigation under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2022), into violations of 18 C.F.R. § 35.41 (a) and (b) and Section 40.2.5.e of the Midcontinent Independent System Operator (MISO) Energy and Operating Reserve Markets Tariff (Tariff). On May 23, 2023, Enforcement and EAL agreed to terms that would resolve the Commission’s claims against EAL. EAL neither admitted nor denied liability and agreed to: (1) pay a civil penalty of $52,000 to the United States Treasury; and (2) be subject to compliance monitoring as detailed in the Agreement. |
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OhmConnect, Inc., Docket No. IN23-6-000, Order Approving Stipulation and Consent Agreement, 183 FERC ¶ 61,136 (May 22, 2023)
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Civil penalty of $141,094 to the United States Treasury; disgorgement of $8,906 to CAISO; compliance monitoring |
The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and OhmConnect, Inc. (Ohm). The Agreement resolves Enforcement’s investigation under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2022), into violations of CAISO Tariff section 37.3.1.1, which requires resources to make bids that they reasonably expect to be able to fulfill. On April 10, 2023, Enforcement and Ohm agreed to terms that would resolve the Commission’s claims against Ohm. Ohm neither admitted nor denied liability and agreed to: (1) pay a civil penalty of $141,094 to the United States Treasury; (2) disgorge $8,906 to CAISO; and (3) be subject to compliance monitoring as detailed in the Agreement. |
| Leapfrog Power, Inc., Docket No. IN23-7-000, Order Approving Stipulation and Consent Agreement, 183 FERC ¶ 61,137 (May 22, 2023) | Civil penalty of $73,880 to the United States Treasury; disgorgement of $46,120 to CAISO; compliance monitoring | The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Leapfrog Power, Inc. (Leap). The Agreement resolves Enforcement’s investigation under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2022), into violations of CAISO Tariff section 37.3.1.1, which requires resources to make bids that they reasonably expect to be able to fulfill. On April 10, 2023, Enforcement and Leap agreed to terms that would resolve the Commission’s claims against Leap. Leap neither admitted nor denied liability and agreed to: (1) pay a civil penalty of $73,880 to the United States Treasury; (2) disgorge $46,120 to CAISO; and (3) be subject to compliance monitoring as detailed in the Agreement. |
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Houlihan Chen,
Prior Commission Activity: Docket No. IN15-3-000, Order Approving Stipulation and Consent Agreement, 177 FERC ¶ 61,076 (Oct. 29, 2021) and FERC v. Powhatan Energy Fund, LLC, et al., Case No. 3:15-cv-0452 (E.D. Va.) 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). |
Civil Penalty of $16,800,000 and Disgorgement $3,465,108. |
The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and the Chen Defendants (Houlihan 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 of $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 altered the Commission’s claims against Powhatan, which were ultimately resolved by Default Judgment issued by the U.S. District Court, Eastern District of Virginia, Richmond Division, on March 22, 2023. The default judgment affirmed the Commission’s civil penalty order and awarded $3,465,108 in disgorgement and $16,800,000 in civil penalties. |
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