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All Civil Penalty Actions – 2015


To access the significant orders and federal district court papers related to all matters that have proceeded to Orders to Show Cause, see the Orders to Show Cause Proceedings page.

Subject(s) of Investigation and Order Sanctions, including Civil Penalties, Disgorgement, and Compliance Measures Description of Findings of Violations
City Power Marketing, LLC and K. Stephen Tsingas. Order Assessing Civil Penalties, 152 FERC ¶ 61,012 PDF (July 2, 2015), Order to Show Cause and Notice of Proposed Penalty, 150 FERC ¶ 61,176  PDF (March 6, 2015) Civil penalties and disgorgement as follows: $1,278,358 in disgorgement jointly and severally against City Power and Tsingas; $14 million civil penalty against City Power; $1 million civil penalty against Tsingas. The Commission issued an Order Assessing Civil Penalties for alleged violation of the Commission’s Anti-Manipulation Rule, 18 C.F.R. § 1c.2, section 222 of the Federal Power Act (FPA), 16 U.S.C. § 824v(a), and 18 C.F.R. § 35.41(b) by engaging in (i) a scheme to collect Marginal Loss Surplus Allocation payments through large volumes of sham Up To Congestion trades in PJM and (ii) false statements under oath to staff designed to conceal important contemporaneous evidence (instant messages) discussing the trades. City Power and Tsingas elected, as part of their response to the Commission’s Order to Show Cause, the procedures of FPA section 31(d)(3), in which the Commission assessed a penalty and instituted an action in federal district court to affirm the assessment.
Maxim Power Corporation, Maxim Power (USA), Inc., Maxim Power (USA) Holding Company Inc., Pawtucket Power Holding Co., LLC, Pittsfield Generating Company, LP, and Kyle Mitton. Petition for an Order Affirming Order Assessing Civil Penalty (July 1, 2015)  PDF
Order Assessing Civil Penalties, 151 FERC ¶ 61,094  PDF (May 1, 2015), Order to Show Cause and Notice of Proposed Penalty, 150 FERC ¶ 61,068  PDF (February 2, 2015), Notice of De Novo Election  PDF (Mar. 4, 2015)
Assessed civil penalties and disgorgement as follows: $5 million jointly and severally against Maxim Power Corporation and the other named corporate respondents; $50,000 Civil Penalty against Kyle Mitton The Commission issued an Order Assessing Civil Penalties for violations of the Commission’s Anti-Manipulation Rule, 18 C.F.R. § 1c.2, section 222 of the Federal Power Act (FPA), 16 U.S.C. § 824v(a), and 18 C.F.R. § 35.41(b) through a scheme to mislead the ISO-New England market monitor to collect make-whole payments for reliability dispatches based on the price of oil when Maxim’s plant actually burned less costly gas. Maxim and the other named corporate respondents including Mitton elected the procedures of FPA section 31(d)(3), in which the Commission assesses a penalty and, if the penalty is not paid, then institutes an action in federal district court to review the assessment.
Houlian Chen Powhatan Energy Fund, LLC HEEP Fund, LLC. CU Fund, Inc. Order Assessing Civil Penalties, 151 FERC ¶ 61,179  PDF (May 29, 2015), 149 FERC ¶ 61,261  PDF (December 17, 2014), Order Revising Show Cause Order 149 FERC ¶ 61,263  PDF (December 18, 2014), Notice of De Novo Election  PDF (Jan. 12, 2015) Powhatan Energy Fund: Civil Penalty of $16,800,000 and Disgorgement of $3,465,108 in unjust profits; CU Fund: Civil Penalty of $10,080,000 and Disgorgement of $1,080,576 in unjust profits; HEEP Fund: Civil Penalty of $1,920,000 and Disgorgement of $173,100 in unjust profits; Houlian Chen: Civil Penalty of $500,000 for his acts on behalf of Powhatan Energy Fund and HEEP Fund and $500,000 for his acts on behalf of CU Fund. The Commission issued an Order Assessing Civil Penalties finding a violation of the section 222 of the Federal Power Act (FPA), 16 U.S.C. § 824v, and the Commission’s Anti-Manipulation Rule, 18 C.F.R. § 1c.2, by engaging in fraudulent Up To Congestion (UTC) transactions in order to collect Marginal Loss Surplus Allocation (MLSA) payments in PJM Interconnection L.L.C.’s energy markets. Chen and the other named respondents elected the procedures of FPA section 31(d)(3), in which the Commission assesses a penalty and, if the penalty is not paid, then institutes an action in federal district court to review the assessment.
Western Electricity Coordinating Council 151 FERC ¶ 61,175  PDF (May 26, 2015) $16,000,000, offset by $13,000,000 in Reliability Enhancements;  Compliance Monitoring. The Commission approved a settlement resolving findings under 9 Requirements of 5 Reliability Standards for failures to:   establish valid system operating limits (SOLs) and interconnection reliability operating limits (IROLs), identify and prevent potential violations of SOLs and IROLs, be aware of the impact of protection systems, and to alert impacted Balancing Authorities and Transmission Operators regarding potential violations of SOLs and IROLs.

Total Civil Penalties assessed for all years 2007 to present: $642,579,786.00.

Total Civil Penalties does not include the $30,000,000 assessed in Hunter and overturned on jurisdictional grounds by the U.S. Court of Appeals for the District of Columbia Circuit. Also does not include penalties proposed or assessed in the following currently pending matters: $28,000,000 in BP America Inc., et al.; $453,000,000 in Barclays Bank PLC, et al.; $5,000,000 assessed in Lincoln Paper and Tissue, LLC; $7,500,000 assessed in Competitive Energy Services, LLC; $1,250,000 assessed in Richard Silkman; $16,800,000 assessed in Powhatan Energy Fund LLC; $10,080,000 assessed in CU Fund Inc.; $1,920,000 assessed in HEEP Fund Inc.; or $1,000,000 assessed in Houlian Chen for his acts on behalf of Powhatan Energy Fund; $5,000,000 (Maxim corporate entities) and $50,000 (Kyle Mitton) assessed in Maxim Power Corporation, et al.; $14 million against City Power Marketing, LLC and $1 million against K. Stephen Tsingas.

Total Disgorgement ordered for all years 2007 to present: $301,956.526.

Total Disgorgement does not include amounts ordered in the following currently pending matters: $34,900,000 ordered in Barclays Bank PLC, et al.; $379.016 ordered in Lincoln Paper and Tissue, LLC; $166,841 ordered in Competitive Energy Services, LLC; $800,000 proposed in BP America Inc., et al.; $3,465,108 assessed in Powhatan Energy Fund LLC; $1,080,576 assessed in CU Fund Inc.; or $173,100 assessed in HEEP Fund, Inc. or $1,278,358 assessed in City Power Marketing, et al.


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Updated: July 17, 2015