Report of the Compliance & Enforcement Committee

Energy Law Journal, January 1, 2013 | Go to article overview

Report of the Compliance & Enforcement Committee


This report of the Compliance & Enforcement Committee summarizes key federal enforcement and compliance developments in 2012 including certain decisions, orders, actions, and rules of the Federal Energy Regulatory Commission, the Commodity Futures Trading Commission, the Pipeline and Hazardous Materials Safety Administration, the Department of Energy, and the United States Department of Justice.*

I. THE FEDERAL ENERGY REGULATORY COMMISSION

A. Reports and Rules

1. Annual Enforcement Report

On November 15, 2012, the Federal Energy Regulatory Commission (FERC) Office of Enforcement issued its Annual Report of enforcement staffactivities in fiscal year 2012.1 The report highlighted the creation of the new Division of Analytics and Surveillance; initiation of sixteen investigations and closure of twenty-one investigations; nine settlements, five Orders to Show Cause, and seven Notices of Alleged Violations.2 The FERC settled cases for over $148 million in civil penalties and over $119 million disgorgement of unjust profits.3 Enforcement processed thirty-three full Notices of Penalty and twelve Spreadsheet Notices of Penalty including a total of 904 possible or confirmed violations.4

2. Division of Analytics and Surveillance

In February 2012, the FERC Office of Enforcement created the Division of Analytics and Surveillance (DAS) to "develop[] surveillance tools, conduct[] surveillance, and analyze[] transactional and market data to detect potential manipulation, anticompetitive behavior, and other anomalous activities in the energy markets."5 "In FY2012, DAS reviewed numerous instances of potential misconduct and referred matters" to the Division of Investigations.6 The FERC also issued Order No. 760, Enhancement of Electricity Market Surveillance and Analysis through Ongoing Electronic Delivery of Data from Regional Transmission Organizations (RTO) and Independent System Operators (ISO),7 and Order No. 768, Electricity Market Transparency Provisions of section 220 of the Federal Power Act (FPA), 8 to "enhance DAS's ability to conduct surveillance of the electric markets and to analyze individual market participant behavior."9 Order No. 760 requires RTOs/ISOs to deliver market data directly to the FERC, including "physical and virtual bids and offers, market awards, resource outputs, marginal cost estimates, shiftfactors, financial transmission rights, internal bilateral contracts, uplift, and interchange pricing."10 Order No. 768 requires "market participants that are excluded from [FERC] jurisdiction under FPA section 205, and have more than a de minimis market presence to file [Electric Quarterly Reports] with the [FERC]."11

B. Show Cause Proceedings

1. Barclays Bank, PLC

On October 31, 2012, the FERC issued an Order to Show Cause (OSC) to Barclays Bank PLC (Barclays) and four individuals, Daniel Brin, Scott Connelly, Karen Levine, and Ryan Smith (together, the individual traders), directing them to show cause why they did not violate section 1c.2 of the FERC's regulations and section 222 of the FPA.12 Barclays and the individual traders "are alleged to have violated section 1c.2 by manipulating the electricity markets in and around California from November 2006 to December 2008."13

Office of Enforcement Staff(OE Staff) initiated the investigation after the Enforcement Hotline received calls from market participants on the matter.14 OE Staffconcluded "that Barclays and the individual traders engaged in . . . loss-generating trading of next-day fixed-price physical electricity on the IntercontinentalExchange . . . to benefit Barclays' financial swap positions."15 In its "Enforcement StaffReport and Recommendation" to the FERC, Staff"allege[d] that Barclays and the individual traders engaged in a coordinated scheme to manipulate trading at four electricity trading points in the Western United States in certain months from November 2006 to December 2008."16 OE Staffproposed $34. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Report of the Compliance & Enforcement Committee
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.