Dive Summary:

• The state of California won a battle against investment bank JPMorgan Chase & Co. when a federal agency dismissed JPMorgan's complaint that it was underpaid $3.7 million for electricity last spring by the California Independent System Operator (ISO).
• Two larger fights between the two are still pending, including a claim made by the ISO that the bank's traders used questionable bidding practices to produce $73 million in excess profits.
• The Federal Energy Regulatory Commission is still investigating the matter, but has already suspended JPMorgan for six months from charging "market-based" rates for its electricity on the grounds it gave out false information.

From the article:

In another case, the ISO charged that JPMorgan is improperly stonewalling a power-plant renovation in Huntington Beach that could be crucial to preventing blackouts next summer across Southern California. FERC is investigating that as well.

The ISO often buys electricity to cover last minute shortfalls, and then bills the retail utilities for the cost. JPMorgan said it provided the ISO with power 18 times between last April and June, but was underpaid. ...