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

Shell Energy North America (US), L.P. , Docket No.  IN21-8-000, Order Approving Stipulation and Consent Agreement, 175 FERC ¶ 61,201 (June 15, 2021)

Civil Penalty of $951,683, disgorgement of $48,317 plus interest, and annual compliance monitoring reporting for two years On June 15, 2021, the Commission approved a Stipulation and Consent Agreement (Agreement) between FERC’s Office of Enforcement (Enforcement) and Shell Energy North America (US), L.P. (SENA).  In the Order, the Commission found the settlement is in the public interest because the Agreement resolves on fair and equitable terms Enforcement’s investigation under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2020), into whether SENA engaged in a related-positions fraudulent scheme involving physical trading for the purpose of benefiting related financial positions during the May 2016 bidweek (April 25-29, 2016), in violation of section 4A of the Natural Gas Act (NGA), 15 U.S.C. § 717c-1, and the Commission’s Anti-Manipulation Rule, 18 C.F.R. § 1c.1.   SENA stipulates to the facts set forth in Section II of the Agreement, but neither admits nor denies the alleged violations.  SENA also agrees to annual compliance monitoring for two years.

Boyce Hydro Power, LLC, Docket No. P-10809-050, Order Assessing Penalty, 175 FERC ¶ 61,049 (April 15, 2021)

Prior Commission Activity:

Boyce Hydro Power, LLC, Order to Show Cause and Notice of Proposed Penalty,  173 FERC ¶ 61,217  (December 9, 2020)

Civil Penalty of $15,000,000 On April 15, 2021, the Commission assessed a civil penalty of $15 million against Boyce Hydro Power, LLC, licensee of three hydropower projects in Michigan, for violating numerous FERC staff orders and license provisions addressing safety of project facilities and surrounding communities following catastrophic failures of two of its dams.  Specifically, Boyce Hydro failed to begin a required forensic study of the dam failures and ignored staff’s orders to conduct engineering safety studies and to file certain required reports to ensure homes and other buildings surrounding the Boyce Projects were not at risk of further damage.
Alliance NYGT LLC, Docket No. IN21-4-000, Order Approving Stipulation and Consent Agreement, 174 FERC ¶ 61,086  (Feb. 8, 2021) Civil Penalty of $420,000, disgorgement of $463,974.28, inclusive of interest and annual compliance monitoring reporting

On February 8, 2021, the Commission approved a Stipulation and Consent Agreement (Agreement) between FERC’s Office of Enforcement (Enforcement) and Alliance NYGT LLC (NYGT).  In the Order, the Commission found the settlement is in the public interest because the Agreement resolves on fair and equitable terms Enforcement’s investigation under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2020), into whether NYGT submitted offers and information to the New York Independent System Operator (NYISO) that did not accurately reflect the fuel used to run its generators, failed to respond to NYISO’s inquiries regarding the type of fuel required and used to run its generators, and omitted material information from its responses to NYISO about its fuel use.  NYGT stipulated to the facts and admitted that it violated 18 C.F.R. § 35.41(a)-(b) (2020) and several provisions of the NYISO Market Administration and Control Services Tariff.  NYGT also agrees to submit annual compliance reports.

Freeport LNG Development, L.P., Docket No. IN17-7-000, Order Approving Stipulation and Consent Agreement, 174 FERC ¶ 61,055  (Jan. 28, 2021)

Prior Commission Activity:

Order Granting Construction of LNG Facility, Freeport LNG Dev., L.P., 107 FERC ¶ 61,278 (Jun. 18, 2004)

Order Granting Construction of LNG Export Terminal, Freeport LNG Dev., L.P. et al., 148 FERC ¶ 61,076 (Jul. 30, 2014)
Civil Penalty of $550,000 On January 28, 2021, the Commission approved a Stipulation and Consent Agreement (Agreement) between FERC’s Office of Enforcement (Enforcement) and Freeport LNG Development, L.P. (Freeport).  In the Order the Commission found the settlement is in the public interest because the Agreement resolves on fair and equitable terms Enforcement’s investigation under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2020), into whether Freeport violated Section 3(e) of the Natural Gas Act (NGA) (15 U.S.C. § 717b(e) (2012)) and the Commission’s Order in Freeport LNG Dev., L.P., 148 FERC ¶ 61,076 (2014) by clearing and stabilizing a portion of its site without prior Commission authorization and failing to provide a complete and accurate account of that violation.  Freeport stipulates to the facts set forth in Section II of the Agreement, but neither admits nor denies the alleged violations.

Tres Palacios Gas Storage LLC, Docket No. IN21-3-000 Order Approving Stipulation and Consent Agreement, 174 FERC ¶ 61,060 (Jan. 19, 2021)

Prior Commission Activity:

Order Issuing Certificates, Tres Palacios Gas Storage LLC, 120 FERC ¶ 61,253 (Sept. 20, 2007)

Order Granting In Part and Denying in Part Abandonment, Tres Palacios Gas Storage LLC, 160 FERC ¶ 61,107 (Sept. 21, 2017)

Civil Penalty to the United States of $700,000 and annual compliance monitoring reporting The Commission approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Tres Palacios LLC (Tres Palacios).  The Agreement resolves the investigation conducted by Enforcement into whether Tres Palacios violated the terms of the Commission’s Order Issuing Certificates and section 7(e) of the Natural Gas Act by failing to timely conduct sonar surveys are required.  Tres Palacios admits the facts set forth in the Agreement, but neither admits nor denies the violation.  

NRG Power Marketing, LLC, Docket No. IN20-4-000, Order Approving Stipulation and Consent Agreement, 174 FERC ¶ 61,016 (Jan. 8, 2021)

Civil Penalty of $85,000

On January 8, 2021, the Commission approved a Stipulation and Consent Agreement (Agreement) between FERC’s Office of Enforcement and NRG Power Marketing, LLC (NRG).  The Order resolved Enforcement’s investigation into whether NRG, the lead market participant for several capacity resources in ISO-NE’s Forward Capacity Market, violated section II.13 of the ISO-NE Tariff and section 35.41(b) of the Commission’s regulations in connection with its submission of de-list bids for certain of its capacity resources.  NRG admits to the facts set forth in the Agreement, but neither admits nor denies the alleged violations.  NRG also agrees to submit annual compliance reports.

Algonquin Power Windsor Locks LLC, Docket No. IN21-2-000, Order Approving Stipulation and Consent Agreement, 174 FERC ¶ 61,001 (Jan. 5, 2021) Civil Penalty of $1 million and disgorgement of $1,119,073.15, inclusive of interest On January 5, 2021, the Commission approved a Stipulation and Consent Agreement (Agreement) between FERC’s Office of Enforcement and Algonquin Power Windsor Locks LLC (Windsor Locks).  The Order resolved an investigation in which Enforcement concluded that Windsor Locks had violated the ISO-New England Tariff and section 35.41(a) of the Commission’s regulations by failing to offer MWs required by its participation the ISO-New England Forward Capacity Market and Forward Reserve Market.  Windsor Locks admits to the facts set forth in the Agreement, but neither admits nor denies the alleged violation.   Windsor also agrees to annual compliance monitoring.

 

Total Civil Penalties assessed for all years 2007 to present: $788,647,179.

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: $20,160,000 in BP America Inc., et al. that is now at the US Court of Appeals for the Fifth Circuit; $16,800,000 against Powhatan Energy Fund LLC, $10,080,000 against CU Fund Inc., $1,920,000 against HEEP Fund Inc., or $1,000,000 against Houlian Chen assessed in Powhatan Energy Fund, et al.; $26 million against Coaltrain Energy, L.P., $5 million each against Peter Jones and Shawn Sheehan, $1 million against Robert Jones, and $500,000 each against Jeff Miller and Jack Wells assessed in Coaltrain Energy, L.P., et al.; $213,600,000 civil penalty against TGPNA, $1,000,000 civil penalty against Hall, and $2,000,000 civil penalty against Tran proposed in Total Gas & Power North America, et al.; or $1,515,738 civil penalty assessed against Vitol Inc. and $1,000,000 civil penalty assessed against Federico Corteggiano in Vitol Inc. and Federico Corteggiano.

 

Total Disgorgement ordered for all years 2007 to present: $519,996,606.

Total Disgorgement does not include amounts ordered in the following currently pending matters: $207,169 in BP America Inc., et al.; that is now at the US Court of Appeals for the Fifth Circuit; $3,465,108 assessed in Powhatan Energy Fund LLC; $1,080,576 assessed in CU Fund Inc.; $173,100 assessed in HEEP Fund, Inc.; $4,121,894 plus interest assessed in Coaltrain Energy, L.P., et al.; $9,180,000 proposed in Total Gas & Power North America , et al.; or $1,227,143, plus interest, assessed against Vitol in Vitol Inc. and Federico Corteggiano.

 

Total Other Payments ordered for all years 2007 to present: $8,200,000.

“Other payments” are defined as miscellaneous items ordered by the Commission that have a financial value, but are not considered a civil penalty or disgorgement. They include payments towards mitigation, enhancements, compliance activities, or a hurricane charitable fund. Payments included in this total are: $1,000,000 charitable donation ordered in Entergy Energy Services, Inc. in 2007; $1,000,000 in compliance plan improvements ordered in Duquesne Light Company in 2008; $2,000,000 in compliance plan improvements ordered in Edison Mission in 2008; $2,000,000 in mitigation and compliance plan improvements ordered in Grand River Dam Authority in 2011; $2,200,000 in public safety enhancements and computer system upgrades ordered in Erie Boulevard Hydropower, L.P. and Brookfield Power US Assets Management, LLC in 2014.

This page was last updated on June 16, 2021