Dive Brief:
- The Federal Energy Regulatory Commission and Barclays Plc have made substantial progress towards a settlement that would resolve 2012 allegations of power market manipulation and could result in the largest fine ever levied by the agency.
- In 2013, FERC ordered Barclays to pay a $435 million fine, give up $34.9 million in profits and ordered four traders to pay $18 million for manipulating electricity prices in California between 2006 and 2008.
- According to Reuters, the U.S. District Court in California is expecting a settlement to be filed within 45 days.
Dive Insight:
No details have been released about what the settlement might entail, but the District Court said last week that "parties made substantial progress towards a settlement." A status report or filings to dismiss the lawsuit is due within 45 days. The British bank also did not offer comment on the report.
In October 2013, FERC asked a federal judge to order Barclays to pay almost $500 million, when the fine and illegitimate profits are considered. The agency said the bank had not paid some 60 days after FERC issued its decision.
In 2005, by way of the Energy Policy Act, Congress upped FERC's ability to levy civil penaties up to $1 million per day per violation. Since 2007, FERC has assessed penalties of almost $693 million and ordered disgorgement of $444 million.
In 2013, JP Morgan & Chase paid $285 million — the largest FERC penalty to date — in order to settle allegations of power market manipulation.
