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Earlier this month, the Federal Energy Regulatory Commission (FERC) issued an Order Assessing Civil Penalties against City Power Marketing, LLC (City Power) and its founder and sole owner, K. Stephen Tsingas[1] (collectively, Respondents)  for violating section 222 of the Federal Power Act (FPA) and section 1c.2 of the Commission’s regulations, which prohibit energy market manipulation.[2]

According to FERC, Respondents entered into fraudulent “no risk” Up-to-Congestion (UTC) trades in PJM’s market to earn excessive amounts of Marginal Loss Surplus Allocation (MLSA) payments made to transmission customers. The Commission also found that City Power and Mr. Tsingas, in writing and orally, denied the existence of relevant and material instant messages (IM) when responding to the Office of Enforcement (OE) Staff’s (Staff) investigation in violation of section 35.41(b) of the Commission’s regulations, which prohibits a seller, such as City Power, from submitting false or misleading information or omitting material information to the Commission and its Staff unless it exercises due diligence to prevent such occurrences.

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Photo of Francesca Ciliberti-Ayres‡ Francesca Ciliberti-Ayres‡

Francesca focuses her practice on energy regulatory and litigation matters before the Federal Energy Regulatory Commission (FERC), state public utility commissions, and the Court of Appeals. Her experience includes representing parties in major interstate natural gas and petroleum pipeline hearings involving complex multiparty…

Francesca focuses her practice on energy regulatory and litigation matters before the Federal Energy Regulatory Commission (FERC), state public utility commissions, and the Court of Appeals. Her experience includes representing parties in major interstate natural gas and petroleum pipeline hearings involving complex multiparty major rate cases, in certificate proceedings and confidential investigations before FERC involving natural gas, oil, and environmental matters, LNG licensing, tariff, and fuel proceedings. She also advises clients on ensuring compliance with regulatory requirements and environmental regulations.

Photo of Gregory K. Lawrence Gregory K. Lawrence

Gregory K. Lawrence focuses his practice on the electricity and natural gas industries. He is experienced appearing before the Federal Energy Regulatory Commission (FERC) and multiple state utility commissions regarding regulatory proceedings, compliance and enforcement, capacity and energy market structure, transactions and negotiations,

Gregory K. Lawrence focuses his practice on the electricity and natural gas industries. He is experienced appearing before the Federal Energy Regulatory Commission (FERC) and multiple state utility commissions regarding regulatory proceedings, compliance and enforcement, capacity and energy market structure, transactions and negotiations, asset transfers, and governmental affairs. Greg’s clients include funds and financial institutions, marketers, traders, renewable and other project developers, energy storage and demand response assets, municipal and investor-owned utilities, and large energy consumers.

Recognized as a leading energy and electricity lawyer by Chambers USA, Greg is a frequent speaker at energy industry conferences and a contributor to a wide range of publications, including The Electricity Journal, Electric Light & Power, Energy Risk, Bloomberg Law Reports, Project Finance International, Corporate Counsel, Windpower Engineering, and EnergyLaw 360. He also authored a quarterly column in Electric Energy T&D Magazine and “Rationalizing Supply with Demand: Electricity Demand Response in U.S. Wholesale Electricity Markets,” a book chapter in U.S. Law and Taxation.