Dive Brief:
- The Federal Energy Regulatory Commission (FERC) and Exelon have settled over allegations that the Constellation Energy Commodities Group gave the California Independent System Operator (ISO) false information in 2010. Constellation was not owned by Exelon at the time; Exelon acquired Constellation in 2012.
- Exelon admitted to Constellation's violations and agreed to pay a $500,000 civil penalty and $145,928 (plus interest) in "unjust" gains.
- FERC said Constellation designated certain transactions as "wheeling through" California but the transactions had no end delivery points.
Dive Insight:
FERC has policed energy markets with a vengeance since the Energy Policy Act of 2005, which increased potential penalties from $10,000 per day per violation up to $1 million. Constellation is no stranger to market violations either as it received a $135 million fine from FERC over market violation that took pace in 2007 and 2008.