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Power & Pipes

FERC, CFTC, and State Energy Law Developments

On October 28, the Federal Energy Regulatory Commission (Commission) issued an order approving a $2.7 million settlement relating to allegations that North America Power Partners (NAPP) engaged in fraudulent conduct in violation of the Commission’s prohibition against market manipulation and committed multiple violations of the PJM Interconnection, LLC’s (PJM) Open Access Transmission Tariff (OATT). The Commission’s order resolves an Office of Enforcement investigation into NAPP’s conduct that occurred more than two years ago. NAPP did not admit or deny the allegations contained in the settlement with the Office of Enforcement.

The Office of Enforcement’s investigation stems from NAPP’s activities in PJM’s Demand Response Programs during 2007 and 2008. NAPP, a Curtailment Service Provider, acts as an agent for individual resources that seek to participate in PJM’s Demand Response Programs. In March 2008, PJM referred certain issues relating to NAPP’s participation in PJM’s Synchronized Reserve Market (SRM), Interruptible Load for Reliability Program (ILR), and the Interchange Energy Market (IEM) to the Office of Enforcement. Through the course of its investigation, the Office of Enforcement alleged the following:   Read more…