By

Kenneth Irvin

21 May 2018

Energy Enforcement Update

This week’s enforcement update covers:

  • FERC Enforcement Staff presents the 2018 Summer Energy Market and Reliability Assessment;
  • CFTC Staff issues report assessing market impacts of LNG;
  • CFTC Commissioner Behnam discusses CFTC enforcement program and trends;
  • FERC files opposition to TOTAL petition for writ of certiorari in the Supreme Court;
  • Second Circuit affirms dismissal of class action against TOTAL for alleged natural gas manipulation; and
  • FERC Enforcement settles investigation with PSEG.

(more…)

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05 April 2018

Energy Enforcement Update

This week’s enforcement update covers:

  • FERC files opposition to Powhatan and Chen motion to dismiss amended complaint;
  • Judge denies CFTC motion to compel based on agreement of parties;
  • FERC extends deadline for comments in grid resilience proceeding to May 9;
  • Supreme Court extends time for government to respond to TOTAL;
  • Sidley and The Brattle Group to host webinar on FERC energy storage order; and
  • Sidley’s Ken Irvin moderates PLI program on FERC enforcement.

(more…)

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05 March 2018

Energy Enforcement Update

This week’s enforcement update covers:

  • Powhatan and Chen file motion to dismiss FERC’s amended complaint;
  • FERC and Silkman/CES file motions for summary judgment regarding statute of limitations;
  • FERC Staff finds no withholding of pipeline capacity in New England markets;
  • BP files reply to FERC answer regarding on statute of limitations; and
  • FERC and ETRACOM stay discovery pending mediation.

(more…)

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07 February 2018

Energy Enforcement Update

This week’s enforcement update covers:

  • CFTC orders Deutsche Bank Securities Inc. to pay $70 million penalty for attempted manipulation of ISDAFIX benchmark;
  • CFTC and DOJ announce spoofing charges against banks and individuals;
  • FERC files amended complaint in case against Powhatan and Chen;
  • Judge grants joint motion on summary judgment procedure in FERC case against Silkman/CES;
  • FERC OE files answer to BP motion seeking dismissal based on statute of limitations;
  • FERC Chairman testifies on grid performance during recent weather events; and
  • FERC Commissioner Rich Glick stresses importance of FERC enforcement regime.

(more…)

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18 January 2018

Energy Enforcement Update

Our first enforcement update for 2018 covers:

  • FERC terminates DOE NOPR proceeding on grid resilience and initiates new proceeding;
  • FERC increases maximum civil penalties for violations;
  • TOTAL files petition for writ of certiorari in Supreme Court;
  • FERC loses again – Judge rules Powhatan and Chen are entitled to a de novo trial in district court;
  • Judge denies Silkman and CES objection to magistrate’s discovery rulings in district court; and
  • ERCOT proposes rule revisions to protect its jurisdictional independence from FERC.

(more…)

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17 January 2018

U.S. Federal Energy Regulatory Commission Requires Interstate Natural Gas Pipelines to Recalculate Rates

On Jan. 12, the Federal Energy Regulatory Commission (FERC) issued data requests to four interstate pipelines that are proposing incremental recourse rates in pending Natural Gas Act (NGA) Section 7 certificate applications.1 This action was significant because it appears to be FERC’s first step toward responding to tax law changes in the Law to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, also known as the Tax Cuts and Jobs Act of 2017 (2017 Tax Act).

FERC permits pipelines and public utilities to recover their actual or potential tax expenses in their regulated rates. The 2017 Tax Act reduces the corporate tax rate to 21 percent and allows certain investments to receive bonus depreciation treatment. FERC asked each pipeline to 1) explain how the 2017 Tax Act impacts its proposed project cost of service and the resulting initial recourse rate proposal; 2) provide an adjusted cost of service and recalculated initial incremental recourse rates; and 3) provide all supporting work papers and formulas.2 (more…)

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21 December 2017

Energy Enforcement Update

This week’s enforcement update covers:

  • BP files motion seeking dismissal of FERC case based on statute of limitations;
  • Eversource sends cease & desist letter regarding alleged gas pipeline capacity withholding report;
  • Secretary Perry grants extension for FERC action on DOE grid resiliency proposal;
  • Kevin McIntyre sworn in as Chairman and Richard Glick sworn in as Commissioner at FERC;
  • House Energy and Commerce Subcommittee holds hearing on financial trading in electricity markets; and
  • CFTC releases annual enforcement results for Fiscal Year 2017.

(more…)

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21 November 2017

Energy Enforcement Update

Our latest enforcement update covers:

  • FERC releases 2017 Report on Enforcement showing continued focus on fraud and market manipulation;
  • CFTC settles with Statoil ASA for attempted manipulation of Argus Far East Index propane benchmark – “damning” messages again cause trouble;
  • Judge issues case management order and sets trial date in CFTC case against Kraft;
  • FERC approves settlement in Barclays case;
  • CFTC orders Cargill, Inc. to pay a $10 million civil penalty for providing inaccurate mid-market marks on swaps;
  • Senate confirms McIntyre and Glick to FERC, but still not sworn in at FERC; and
  • CFTC orders Morgan Stanley and Co. Incorporated to pay $350,000 penalty for Part 17 Large Trader reporting violations.

(more…)

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30 October 2017

Energy Enforcement Update

This week’s enforcement update covers:

  • Barclays and FERC Enforcement reach agreement in principle to settle manipulation lawsuit for a total of $105 million;
  • HSBC executive convicted of foreign currency exchange fraud;
  • FERC Chairman Chatterjee calls for FERC to reexamine proper scope of de novo review;
  • Senator Blumenthal calls on FERC to investigate price manipulation allegations;
  • CFTC finds that Arab Global Commodities DMCC engaged in spoofing of copper futures contracts; and
  • FERC files response to Silkman and CES objection to magistrate’s discovery rulings in district court.

(more…)

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04 October 2017

FERC Issues Declaratory Order Easing Regulatory Approval Requirements for Tax Equity Investors in Renewable Projects

On October 4, FERC issued an order granting a petition for declaratory order by a group of tax equity investors in renewable energy projects, which requested FERC confirmation that the tax equity interests identified in FERC’s order in AES Creative Resources do not constitute voting securities for purposes of section 203 of the Federal Power Act (“FPA”).  (more…)

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