The U.S. Federal Energy Regulatory Commission yesterday
suspended a JPMorgan Chase & Co.unit’s electrical-trading authority, saying
it had filed false information to regulators, Bloomberg said.. The action, part of a more
aggressive effort by the commission to monitor U.S. power markets, prohibits
J.P. Morgan Ventures Energy Corp. from selling electricity at market-based
rates for six months starting April 1, 2013.
The FERC said the company made “factual misrepresentations”
and omitted material information in communications with the California
Independent System Operator, or Caiso, and in filings to the commission. Caiso
operates the state’s power grid.
In its order released late yesterday, FERC said the JPMorgan
unit will essentially be allowed to participate as a bystander in wholesale
power markets, granting it the ability to offer electricity into the market
without a price attached. This will ensure that utilities have the ability to
obtain enough power to serve the demand from customers. JPMorgan would still be
able to trade derivatives under the order….
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