FERC Issues Landmark Enforcement Order In American Efficient

On April 15, 2026, the Federal Energy Regulatory Commission (FERC or the Commission) issued one of the largest enforcement penalty orders in its history, finding that American Efficient, LLC (American Efficient) and its affiliates engaged in a decade‑long fraudulent scheme involving offering energy efficiency resources (EERs) over which they had no contractual authority into the PJM Interconnection, L.L.C. (PJM) and Midcontinent Independent System Operator, Inc. (MISO) capacity markets.¹

The Commission ordered American Efficient to pay a civil penalty of $722 million and to disgorge approximately $410 million in unjust profits (plus interest). The violations considered by FERC in American Efficient spanned more than a decade, and FERC imposed penalties and disgorgement covering the full period of misconduct. Thus, the order underscores FERC’s willingness to look back many years, disgorge the full measure of unjust profits, and impose penalties at the upper end of its authority when