Dive Summary:
- The California Independent System Operator (ISO) has filed a petition with the Federal Energy Regulatory Commission (FERC) accusing JPMorgan Chase of blocking retrofits to two power plants needed to prevent possible blackouts during peak demand in the summer.
- JPMorgan reportedly has a contract stating that it has veto rights; the California ISO claims that neither JPMorgan's or AES's consent is needed to proceed with necessary upgrades in order to meet demand.
- JPMorgan Chase's energy firm, JPMorgan Ventures Energy, has been banned from selling electricity on California's auction-based market for six months starting in April by FERC after it decided JPMorgan had deceived the commission over whether Morgan had overcharged the California ISO by $73 million.
From the article:
"State and federal energy regulators moved on two fronts against the giant investment bank JPMorgan Chase & Co. over its dealings in the California electricity market.
On Wednesday, the Federal Energy Regulatory Commission hit Morgan's electricity-trading unit with one of the most stringent penalties in its arsenal, barring it from selling electricity in California's auction-based market for six months starting in April. ..."