FERC Issues Order To Show Cause To Maxim

The Federal Energy Regulatory Commission ("FERC") recently issued an Order to Show Cause and Notice of Proposed Penalty to Maxim Power Corporation and its named subsidiaries ("Maxim"),¹ jointly and severally, as well as executive, Kyle Mitton (the "Order").² The Commission ordered Maxim and Mitton (together, the "Respondents") to show cause why they should not be assessed civil penalties of $5 million³ and $50,000, respectively. Respondents were due to answer the Order by Wednesday, March 4, 2015 and may elect in their answer to: (1) proceed via a hearing before an Administrative Law Judge; or (2) receive an immediate penalty assessment if FERC finds that a violation occurred, the payment of which the Commission may pursue in federal district court via a trial de novo if such penalty is not paid within 60 days. The Commission does not seek disgorgement because ISO-New England ("ISO-NE") already recovered the alleged overpayments.