All Civil Penalty Actions - 2024

The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Big Rivers Electric Corporation (BREC).  The Order resolves Enforcement’s investigation into whether BREC violated the Commission’s Anti-Manipulation Rule, 18 C.F.R. § 1c.2(a), or other regulations through its communications with the Midcontinent Independent System Operator, Inc. (MISO) and MISO’s Independent Market Monitor, and through its offers to MISO, during June and July 2023. 

BREC stipulates to the fact section set forth in Section II of the Agreement, but neither admits nor denies the alleged violations in Section III of the Agreement.  BREC agrees to: (a) pay a civil penalty of $336,870 to the United States Treasury; (b) pay disgorgement to MISO in the amount of $308,341, inclusive of interest; and (c) be subject to compliance monitoring and undertake compliance program improvements, as set forth in the Agreement.

The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Arlington Energy Center III, LLC; Blythe Solar 110, LLC; Blythe Solar III, LLC; Blythe Solar IV, LLC; Desert Sunlight 250, LLC; Sunlight Storage, LLC; and McCoy Solar, LLC (the Companies).   The Agreement resolves Enforcement’s investigation into whether the Companies, which are indirect subsidiaries of NextEra Energy Resources, LLC and/or NextEra Energy Partners, LP that each operate a co-located battery energy storage system and solar generation facility, violated the California Independent System Operator Corporation’s (CAISO’s) Open Access Transmission Tariff when providing ancillary services to CAISO during the period January 1, 2022 through September 1, 2023. 

The Companies stipulated to the facts, admitted to the violations, and agreed to (a) pay a $105,000 civil penalty to the United States Treasury; (b) disgorge $381,724 to CAISO; and (c) submit an annual compliance monitoring report to Enforcement for one year with a second year at Enforcement’s discretion.

Vista Energy Storage, LLC, Docket No. IN24-11-000, Order Approving Stipulation and Consent Agreement, 188 FERC ¶ 61,112 (Aug. 6, 2024)

Civil penalty of $1,000,000; disgorgement of $1,670,000 to CAISO; and compliance monitoring.

The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Vista Energy Storage, LLC (Vista).  The Agreement resolves Enforcement’s investigation (Investigation) into whether Vista violated the California Independent System Operator Corporation’s (CAISO) Open Access Transmission Tariff or Commission regulations by submitting bids to CAISO when the Vista Battery was not reasonably expected to be available and capable of performing at the levels specified in the bids, on 33 days during the summer of 2022.

Vista stipulates to the fact section set forth in Section II of the Agreement, but neither admits nor denies the alleged violations in Section III of the Agreement.  Vista agrees to: (a) pay a $1,000,000 civil penalty to the U.S. Treasury; (b) disgorge $1,670,000 to CAISO; and (c) be subject to compliance monitoring as provided in the Agreement.   

The Commission issued an Order approving the Stipulation and Consent Agreement (Agreement) resolving the investigation of SunSea Energy, LLC (SunSea).  As set out in the terms of the Agreement, SunSea neither admitted nor denied the violations, but stipulated to the facts contained therein.  SunSea agreed to pay a civil penalty of $5,000.  The Agreement does not require that the company submit to compliance monitoring.

Galt Power Inc., Docket No. IN20-5-000, Order Approving Stipulation and Consent Agreement, 187 FERC ¶ 61,224 (June 28, 2024)

On June 28, 2024, the Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Galt Power Inc., (Galt).  The Agreement resolves Enforcement’s investigation under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2024), into whether Galt violated the Commission’s Anti-Manipulation Rule, 18 C.F.R. § 1c.2 (2024), and section 222 of the Federal Power Act by repeatedly engaging in prohibited wash trades between the New York Independent System Operator and ISO New England Inc. markets between July 8, 2016 and April 23, 2019.  Galt stipulates to the fact section set forth in Section II of the Agreement, but neither admits nor denies the alleged violations in Section III of the Agreement.  Galt agreed to: (1) pay a $1,500,000 civil penalty; (2) pay the Commonwealth of Massachusetts disgorgement of $327,297.85; and (3) submit to compliance monitoring for at least two years.

On May 20, 2024, the Commission approved the Stipulation and Consent Agreement (Agreement) between the ENGIE Energy Marketing NA, Inc. (EEMNA).  The Agreement resolves Enforcement’s investigation into whether EEMNA misrepresented to the ISO New England Inc. (ISO-NE) Internal Market Monitor (IMM) that generator assets EEMNA managed qualified for an exemption from energy market mitigation between July 2021 and September 2022.

EEMNA stipulates to the facts set forth in Section II of the Agreement, but neither admits nor denies the alleged violations in Section III of the Agreement.  EEMNA agreed to pay a $48,000 civil penalty and to submit an annual compliance monitoring report one year from the effective date of the Agreement.

On March 12, 2024, the Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Smart One Energy LLC (Smart One).  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 Smart One violated Section 26.2.1.4 of the New York Independent System Operator’s (NYISO) Market Administration and Control Area Services Tariff for failing to timely inform NYISO of sanctions imposed by two state public service utility commissions.

Vitol Inc. and Federico Corteggiano, Docket No. IN14-4-000, Order Approving Stipulation and Consent Agreement, 186 FERC ¶ 61,008 (Jan. 4, 2024) and FERC v. Vitol Inc. and Federico Corteggiano, Case No. 2:20-CV-00040-KJM-AC (E.D. Cal.)

Prior Commission Activity: Order to Show Cause and Notice of Proposed Penalty, 168 FERC ¶ 61,013 (July 10, 2019); Order Assessing Civil Penalties, 169 FERC ¶ 61,070 (Oct. 25, 2019)

Civil Penalty of $2,225,000 against Vitol and $75,000 against Corteggiano

Following an order to Show Cause proceeding, the Commission issued an Order Assessing Civil Penalties on October 25, 2019, against Vitol Inc. (Vitol) and Federico Corteggiano (Corteggiano), finding that Vitol and Corteggiano violated section 1c.2 of the Commission’s regulations and section 222a of the Federal Power Act (FPA) by selling physical power at a loss in the California Independent System Operator’s wholesale electric market in order to eliminate congestion that they expected to cause losses on Vitol’s congestion revenue rights. The order assessed disgorgement and civil penalties as outlined for the violations. During the Order to Show Cause proceeding, Vitol and Corteggiano elected the procedures of FPA section 31(d)(3), in which the Commission assesses a civil penalty and if it is not paid within 60 days, the Commission institutes an action in federal district court to affirm the assessment. The Commission filed suit against Vitol and Corteggiano in the Eastern District of California on January 6, 2020.

On January 4, 2024, the Commission issued an Order approving a Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Vitol and Corteggiano. The Agreement resolves the litigation between Defendants and the Commission for violations of section 1c.2 of the Commission’s regulations and section 222a of the Federal Power Act in FERC v. Vitol Inc. and Federico Corteggiano, Case No. 2:20-CV-00040-KJM-AC (E.D. Cal.). Vitol and Corteggiano neither admitted nor denied the alleged violations and Vitol agreed to pay $2,225,000 in civil penalties to the United States Treasury, and Corteggiano agreed to pay $75,000 in civil penalties to the United States Treasury.

The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Linde, Inc. (Linde) and Northern Indiana Public Service Company (NIPSCO).  The Agreement resolves Enforcement’s investigation into whether Linde and/or NIPSCO violated the Federal Power Act, the MISO Tariff, or Commission regulations, in connection with Linde’s participation, through NIPSCO, in a MISO demand response program.

Linde and NIPSCO stipulated to the facts set forth in the Agreement.  Linde agreed to (a) pay a $10,500,000 civil penalty to the U.S. Treasury and (b) pay $48,500,000 in disgorgement.  NIPSCO agreed to pay $7,700,000 in disgorgement.  NIPSCO agreed to take specific steps with its state regulator to ensure that disgorged funds paid to NIPSCO will be paid to NIPSCO ratepayers (other than Linde).  Linde agreed that, should it ever participate as a demand response unit in MISO in the future, it will provide training to its staff and alert Enforcement and the MISO Market Monitor.