FERC Civil Penalties for Market Manipulation
How Companies Can Manage Their Risks
September 13, 2017 | Online :: 1:00 - 2:30 PM Eastern
The Federal Energy Regulatory Commission (FERC) recently approved a settlement with GDF SUEZ Marketing NA, Inc. (“GSEMNA”) in which GSEMNA agreed to pay civil penalties of $41 million and disgorge an additional $40.8 million of profits to resolve allegations that it manipulated the wholesale electric markets administered by PJM Interconnection, L.L.C. This is the largest civil penalty imposed by FERC since JP Morgan and Barclays Bank were each required to pay hundreds of millions of dollars in July 2013. To manage the risk of such civil penalty exposure, companies participating in wholesale electric or gas markets need to know how FERC has treated other investigations of possible market manipulation, continually upgrade their compliance programs, and hold periodic and regular compliance training session for their traders, supervisors, and managers. In this webinar, attendees will gain valuable knowledge that will help them delineate what is lawful and what is unlawful or of questionable legality. This will enable attendees to help chart a course for their companies that safeguards them from investigations, while not needlessly inhibiting legitimate and profitable activities.
EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET). In obtaining this accreditation, EUCI has demonstrated that it complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.
EUCI is authorized by IACET to offer 0.2 CEUs for this event.
Requirements for Successful Completion of Program
Participants must be logged on for the entirety of the webinar to be eligible for continuing education credit.
A Web-based PowerPoint presentation and online interactive question/answer session will be used in this webinar for each learning outcome.
FERC’s Jurisdiction and Market Manipulation Enforcement Authority
- EPAct 2005
- FERC Section 1c Prohibitions
- Examples of Prohibited Conduct
- Bidding Practices in RTO/ISO Markets Viewed as Unlawful Gaming
- JP Morgan
- City Power Marketing
- Powhatan Energy Fund
- Conducting Physical Trades to Benefit Financial Positions
- Constellation Energy
- Amaranth/Brian Hunter
- Energy Transfer Partners
- Twin Cities
- National Energy & Trade
- Direct Energy
- Virtual Trading to Benefit Congestion Revenue Rights
- ETRACOM/Michael Rosenberg
- Louis Dreyfus Energy Services
- Deutsche Bank Energy Trading
- Receiving Payments Based on Allegedly Misleading Statements or Omissions
- Lincoln Paper
- Competitive Energy Services
- Rumford Paper
- Gila River
- North America Power Partners/Joseph Polidoro
- Flipping Transactions
- Atmos Energy
- DTE Gas
- Lessons Learned
- How to Manage the Risks of Civil Penalties for Market Manipulation
- FERC Civil Penalty Guidelines
- Penalty Calculation Formula
- Elements of an Effective Compliance Program
- Culpability Scores
- Intentional or Reckless Misrepresentations and False Statements to FERC and FERC Staff
- Key Takeaways
Glenn S. Benson
Partner/Davis Wright Tremaine LLP
Glenn Benson leads the Energy Compliance & Enforcement Defense team out of the Washington, D.C. office of the international law firm of Davis Wright Tremaine LLP. He has more than 23 years of experience advising companies across the energy industry on compliance with Federal Energy Regulatory Commission (FERC) rules and regulations, including its market manipulation prohibition. He conducts regular compliance training sessions for the Firm’s energy clients and guides them through the development, implementation, and continuous improvement of their compliance programs. He also has successfully defended clients in both the electric and natural gas industries from market manipulation investigations at FERC.