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July 09, 2012
Brattle Senior Consultant Shaun Ledgerwood Quoted in Bloomberg Article on Energy Market Manipulation

Brattle senior consultant Shaun Ledgerwood was quoted in a recent Bloomberg article discussing an energy market manipulation lawsuit brought against JPMorgan Chase & Co. by the U.S. Federal Energy Regulatory Commission (FERC).

The article, “JP Morgan Probe Shows FERC Priority Policing Energy,” discusses the recent litigation for potential violations that were identified in California and the Midwest after power-grid operators reported unusual trading offers for the supply of energy. JPMorgan allegedly made bids that resulted in at least $73 million in improper payments to the generators, according to the FERC.

The agency’s focus on market manipulation in recent months demonstrates a renewed effort to oversee and monitor the multibillion dollar markets where electricity is bought and sold by power generators and utilities. In February, the FERC created a new enforcement division tasked with policing the energy-trading markets, and a 2005 overhaul of U.S. energy policy gave the agency the authority to fine companies as much as $1 million a day per violation; a vast increase in the agency’s enforcement powers. “As the amount of resources devoted to this purpose have grown over time, so too has the commission’s ability to pursue such cases,” Dr. Ledgerwood said.

To read the article in its entirety, please visit the Bloomberg website.