FERC to suspend JP MorganÂ’s market-based rate authority
- The Federal Energy Regulatory Commission recently suspended the electric market-based rate authority of JP Morgan Ventures Energy Corp. for submitting false information to the Commission.
The suspension prohibits JP Morgan Ventures from selling power at market-based rates for six months effective April 1, 2013.
FERC is suspending JP Morgan VenturesÂ’ market-based sales rate authority because the company made factual misrepresentations and omitted material information over the course of several months of communications with the California Independent System Operator California ISO and in filings to the Commission in connection with requests for information involving bidding activities in the California market.
The nature of JP Morgan VenturesÂ’ violations is critically important in this case, FERC said. The Commission grants market-based rate authority to companies on the presumption that they will not engage in fraud, deception or misrepresentation. The provision of false, misleading or inaccurate information undermines the integrity of the FERC decision-making process, the smooth operation of markets and FERCÂ’s ability to ensure just and reasonable rates for customers. The Commission continuously has warned market participants of the consequences associated with failing to abide by FERC rules and regulations.
Under FERCÂ’s decision, the suspension delay to April 2013 will give the California ISO and its market participants time to take necessary steps to maintain system reliability during the suspension period. It also will give JP Morgan Ventures time to make alternative arrangements to fulfill any existing contractual obligations.
During the suspension period, JP Morgan Ventures will only be allowed to participate in wholesale electricity markets by either scheduling quantities of energy products without an associated price or by specifying a zero-price in its offer as provided in the pertinent tariffs. JP Morgan VenturesÂ’ rate will be capped at the higher of the applicable locational marginal price or its default energy bid. Such a cap will ensure that load-serving entities have access to adequate generating capacity to serve demand. Alternatively, JP Morgan Ventures would have the option to request cost-based rates.
Related News

Hinkley C nuclear reactor roof lifted into place
LONDON - Engineers have lifted a steel roof onto a building which will house the first of two nuclear reactors at Hinkley Point in Somerset.
Hundreds of people helped with the delicate operation to get the 245-tonne steel dome into position.
It means the first reactor can be installed next year, ready to be switched on in June 2027.
Engineers at EDF said the "challenging job" was completed in just over an hour.
They first broke the ground on the new nuclear station in March 2017. Now, some 10,000 people work on what is Europe's largest building site.
They have faced delays from Covid restrictions…