Energy Industry May 2008 Updates

Edison Mission Energy to Pay $9 Million Penalty for Conduct That Misled FERC Enforcement Staff

On May 19, 2008, FERC announced that it approved a settlement with Edison Mission Energy (Edison Mission) under which Edison Mission will pay a $9-million penalty to remedy its lack of candor with FERC's Office of Enforcement staff during an investigation. Although no finding of improper market activity was announced, FERC imposed the monetary penalty on Edison Mission for failing to comply with its duty of candor as a seller authorized to engage in sales for resale of electric energy at market-based rates.

The imposition of a penalty in this case is unlike recent cases involving penalties since the penalty is based upon Edison Mission's lack of candor with the FERC enforcement staff, not an underlying tariff violation or act of market manipulation. This is, however, a logical extension of the earlier