FERC Approves First Enforcement Settlement Since Quorum Re-Established

On August 22, 2017, the Federal Energy Regulatory Commission ("FERC") issued an Order Approving Stipulation and Consent Agreement with City Power Marketing, LLC ("City Power") and its owner, K. Stephen Tsingas. As detailed in a Cadwalader memorandum, the Consent Order was "the first order approving an enforcement settlement issued since the Commission re-established a quorum with the addition of [Chair] Chatterjee and Commissioner Powelson."

The Order settled FERC claims that City Power violated (i) section 222 of the Federal Power Act, (ii) the FERC Anti-Manipulation Rule, and (iii) the FERC rule requiring truthful communications with the agency. City Power allegedly committed the violations by executing a "scheme to engage in fraudulent Up-To Congestion" ("UTC") transactions in the energy markets of PJM Interconnection, L.L.C. ("PJM") in order to "garner excessive amounts of certain credit payments to transmission customers." In addition, the FERC claimed