To access the significant orders and federal district court papers related to all matters that have proceeded to Orders to Show Cause, see the Orders to Show Cause Proceedings page.

Subject(s) of Investigation and Order Sanctions, including Civil Penalties, Disgorgement, and Compliance Measures Description of Findings of Violations

Coaltrain Energy, L.P., Peter Jones, Shawn Sheehan, Robert Jones, Jeff Miller, Jack Wells, Docket No. IN16-4-000 and FERC v. Coaltrain Energy, L.P. et al., Case No. 2:16-cv-732 (S.D. Ohio), Order Approving Stipulation and Consent Agreement, 181 FERC ¶ 61,031 (October 11, 2022)

Prior Commission Activity:

Order Assessing Penalties, 
155 FERC ¶ 61,204 (May 27, 2016)

 

Order to Show Cause and Notice of Proposed Penalty, 154 FERC ¶ 61,002 (January 6, 2016)
Disgorgement by Coaltrain Energy, L.P. of $4,000,000 to PJM Interconnection L.L.C.

Following an Order to Show Cause proceeding, the Commission issued an Order Assessing Civil Penalties against Coaltrain Energy, L.P., Peter Jones, Shawn Sheehan, Robert Jones, Jeff Miller, Jack Wells. The order found that Coaltrain, and the named individuals violated section 1c.2 of the Commission’s regulations and section 222 of the Federal Power Act (FPA), by engaging in fraudulent Up To Congestion (UTC) transactions in PJM Interconnection L.L.C.’s energy markets. The Commission declined to find Adam Hughes to have individually violated section 1c.2. The order further found that Coaltrain Energy, L.P. violated 18 C.F.R. § 35.41(b) of the Commission’s rules through false and misleading statements and material omissions relating to the existence of documents responsive to data requests and relating to the trading conduct at issue in the matter. Finally, the order assessed disgorgement and civil penalties as outlined for the violations. Coaltrain and the other named respondents elected the procedures of FPA section 31(d)(3), in which the Commission assesses a penalty and if the disgorgement and civil penalties are not paid within 60 days, the Commission institutes an action in federal district court to affirm the assessment.

On October 11, 2022, the Commission issued an Order approving a Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Coaltrain Energy, L.P., finding that the Agreement resolves on fair and equitable terms the Commission’s claims against Coaltrain Energy, L.P. and the named individuals for violations of section 222 of the FPA and the Commission’s Anti-Manipulation Rule, and the Commission’s Duty of Candor Rule, 18 C.F.R. § 35.41(b).  Coaltrain Energy, L.P. neither admits nor denies the alleged violation and agrees to pay the $4,000,000 restitution payment outlined in the Agreement.  The Agreement also resolves the Commission’s lawsuit captioned FERC v. Coaltrain Energy, L.P., et al., No. 2:16-cv-00732 (MHW) (S.D. Ohio).
ISO-New England, Inc., Order Approving Stipulation and Consent Agreement, IN18-8-000, 180 FERC ¶ 61,223 (September 30, 2022) Civil Penalty in the amount of $500,000, specific investments in its compliance program at an estimated cost of up to $350,000, and annual compliance monitoring for up to two years. On September 30, 2022, the Commission approved a settlement agreement (Agreement) between the Office of Enforcement and ISO-New England, Inc. (ISO-NE) resolving Enforcement’s investigation relating to ISO-NE’s capacity payments to Salem Harbor Power Development LP (DevCo) for DevCo’s New Salem Harbor Generating Station project (Project) before the Project was commercial.  Enforcement found that ISO-NE violated multiple provisions in its tariff that, if followed, would have forced DevCo to sell off its capacity award.  Enforcement also found that ISO-NE violated a tariff provision requiring it to provide the Market Monitor with “access to all market data, resources and personnel sufficient to enable” the Market Monitor to perform its market monitoring and mitigation functions.  ISO-NE stipulates to the facts set forth in Section II of the Agreement, but neither admits nor denies the alleged violations.

Enerwise Global Technologies, LLC d/b/a CPower, Order Approving Stipulation and Consent Agreement, IN22-7-000, 180 FERC ¶ 61,126 (Aug. 25, 2022)

Civil Penalty in the amount of $2,539,372 against Enerwise Global Technologies, LLC d/b/a CPower (CPower); disgorgement in the amount of $ 2,460,628 to ISO NE England, Inc. (ISO-NE); and annual compliance monitoring for up to two years. On August 25, 2022, the Commission approved a Stipulation and Consent Agreement (Agreement) between FERC’s Office of Enforcement (Enforcement) and CPower.  In the Order, the Commission found the settlement is in the public interest because the Agreement resolves on fair and equitable terms Enforcement’s investigation into whether CPower complied with its offer obligations in the ISO-NE energy market during the period June 1, 2018 through February 28, 2019.  Staff’s investigation determined that CPower’s conduct violated Section III.13.6.1.5.1 of the ISO-NE Tariff.  CPower stipulates to the facts set forth in Section II of the Agreement, but neither admits nor denies the alleged violations.

GreenHat Energy, LLC, Luan Troxel in her capacity as Executor for the Estate of Andrew Kittell, John Bartholomew, and Kevin Ziegenhorn, Docket No. IN18-9-000, Order Approving Stipulation and Consent Agreement (GreenHat and Kittell Estate)180 FERC ¶ 61,109 (Aug. 19, 2022), Order Approving Stipulation and Consent Agreement (Bartholomew & Ziegenhorn)180 FERC ¶ 61,108 (Aug. 19, 2022)

Prior Commission Activity:

Order to Show Cause, 175 FERC ¶ 61,138 (May 20, 2021); Order Assessing Civil Penalties, 177 FERC ¶ 61,073 (Nov. 5, 2021); Complaint, FERC v. GreenHat Energy, LLC, Civ. No. 22-00044 (E.D. Pa. Jan. 6, 2022)

Disgorgement to PJM:  GreenHat Energy, LLC and Estate of Andrew Kittell ($600,000); Kevin Ziegenhorn ($400,000); John Bartholomew ($375,000). 

10-year trader ban for Bartholomew and Ziegenhorn in Commission-jurisdictional markets; permanent trader ban for both in PJM.

Agreement by GreenHat to entry of $179,600,573 judgment in favor of PJM in Texas state court. 

Agreement by GreenHat to dismissal of $62 million lawsuit against Shell Energy. 

The Commission determined that GreenHat Energy, LLC (GreenHat), John Bartholomew, Kevin Ziegenhorn, and Andrew Kittell, represented by the Executor of his Estate, violated section 222 of the Federal Power Act (FPA) and section 1c.2 of the Commission’s regulations by engaging in a manipulative scheme in the Financial Transmission Rights market operated by PJM Interconnection, L.L.C. (PJM).  The Commission also determined that GreenHat violated PJM’s Tariff and Operating Agreement.  The Commission assessed civil penalties in the following amounts: $179,600,573 against GreenHat, $25 million against Bartholomew, and $25 million against Ziegenhorn.  The Commission also directed  GreenHat, Bartholomew, Ziegenhorn, and the Kittell Estate, jointly and severally, to disgorge unjust profits of $13,072,428, plus applicable interest. 

The Commission filed suit against GreenHat, the Kittell Estate, Bartholomew, and Ziegenhorn in the U.S. District Court for the District of Pennsylvania on January 6, 2022.  On August 19, 2022,  the Commission approved two settlements that wholly resolved the matter:  one with GreenHat and the Kittell Estate, and one with Bartholomew and Ziegenhorn. 

GreenHat and the Estate agree to pay $600,000 in disgorgement (based on ability to pay); Bartholomew and Ziegenhorn agree to pay a total of $775,000 in disgorgement (also based on ability to pay); Bartholomew and Ziegenhorn agree not to trade in Commission-jurisdictional markets for ten years, and never to trade in PJM; GreenHat agrees to entry of judgment of $179,600,573 in favor of PJM in a Texas state court lawsuit; and GreenHat agrees to dismiss $62 million lawsuit against Shell, which was based on factual claims that the Commission determined in the Penalty Order to be false.  The settlement with GreenHat and the Estate is subject to approval by the San Diego Probate Court. 

Salem Harbor Power Development LP, Order Approving Stipulation and Consent Agreement, IN18-8-000, 179 FERC ¶ 61,228 (June 27, 2022) Civil Penalty in the amount of $17,100,000, disgorgement in the amount of $26,693,237.67, and compliance monitoring for two years. On June 27, 2022, the Commission approved a settlement agreement (Agreement) between the Office of Enforcement and Salem Harbor Power Development LP (DevCo), resolving Enforcement’s investigation into DevCo’s receipt of capacity payments from ISO-New England Inc. (ISO-NE) for DevCo’s New Salem Harbor Generating Station project (Project) before the Project was commercial.  Enforcement found that DevCo’s failure to make timely disclosures of Project delays violated the ISO-NE Tariff and the Commission’s Duty of Candor Rule (18 C.F.R. § 35.41(b)).  DevCo stipulates to the facts set forth in Section II of the Agreement, but neither admits nor denies the alleged violations. 

M3 Ohio Gathering LLC and Utica East Ohio Midstream LLC and UEOM NGL Pipelines LLC, Docket No. IN22-6-000, Order Approving Stipulation and Consent Agreement, 179 FERC ¶ 61,221 (June 24, 2022)

Civil Penalty in the amount of $30,000 against M3 Ohio Gathering LLC, and requirement that and UEOM NGL Pipelines LLC certify and submit all outstanding FERC Form No. 6s through the Commission’s eForms portal.

On June 24, 2022, the Commission approved a settlement agreement (Agreement) between the Office of Enforcement and M3 Ohio Gathering LLC (M3) and Utica East Ohio Midstream LLC and UEOM NGL Pipelines LLC (UEOM)(collectively, Utica East), resolving Enforcement’s investigation into Utica East’s failure to submit annual and quarterly Form No. 6s during the period 2013-2019.  Enforcement found that M3 and Utica East’s failure to submit those forms violated Part I, Section 20(1) of the Interstate Commerce Act and the Commission’s regulations (18 C.F.R. § 357.2(a)).  M3 and Utica East stipulate to the facts set forth in Section II of the Agreement, but neither admit nor deny the alleged violations.
sPower Development Company, LLC, Docket No. IN22-5-000, Order Approving Stipulation and Consent Agreement, 179 FERC ¶ 61,220 (June 24, 2022) Civil Penalty in the amount of $24,000 against sPower Development Company, LLC.

On June 24, 2022, the Commission approved a settlement agreement (Agreement) between the Office of Enforcement and sPower Development Company, LLC (sPower), resolving Enforcement’s investigation into sPower’s submission of two interconnection study agreements that inaccurately stated sPower had site control over property for a proposed interconnection (which was necessary for the interconnection process to proceed).  Enforcement found that sPower’s submission of the inaccurate information violated section 36.2A of the PJM Interconnection, LLC (PJM) Tariff.  sPower stipulates to the facts set forth in Section II of the Agreement, but neither admits nor denies the alleged violations.

Ampersand Cranberry Lake Hydro LLC, Docket No. P-9685-034, P-9685-036, Order Assessing Civil Penalty, 179 FERC ¶ 61,037 (April 21, 2022)

Prior Commission Activity:

Order to Show Cause and Notice of Proposed Penalty, 177 FERC ¶ 61,028 (October 21, 2021)
Civil Penalty of $600,000. The Commission assessed a civil penalty of $600,000 against Ampersand Cranberry Lake Hydro LLC (Ampersand Cranberry Lake) for violating Article 5 of the project license by failing to retain the possession of all project property covered by the license.  The project has a high hazard dam, meaning that a failure of the project works would result in a probable loss of human life.  Commission staff repeatedly has ordered Cranberry Lake to make certain repairs to address dam safety issues.
Dynegy Marketing & Trade, LLC, IN22-3-000, Order Approving Stipulation and Consent Agreement, IN22-3-000, 178 FERC ¶ 61,230 (March 28, 2022) Civil Penalty to the United States of $450,000 against Dynegy Marketing and Trade, LLC (Dynegy); disgorgement to PJM Interconnection Inc. (PJM) in the amount of $119,425.10, inclusive of interest; and annual compliance monitoring reporting for two years.

On March 28, 2022, the Commission approved a Stipulation and Consent Agreement (Agreement) between FERC’s Office of Enforcement (Enforcement) and Dynegy.  In the Order, the Commission found the settlement is in the public interest because the Agreement resolves on fair and equitable terms Enforcement’s investigation into whether Dynegy’s Real-Time energy market offers in Summer 2017 for ten GE 7FA (7FA) dual-fuel combustion turbines (CTs) in the PJM market misrepresented that the units could ramp to their maximum oil-based output attained during their capacity tests (ICAP) while running on gas. Staff’s investigation determined that Dynegy’s conduct violated 18 C.F.R. § 35.41(b) and Section 1.7.19 of Schedule 1 of the Amended and Restated Operating Agreement and Attachment K – Appendix of the PJM Open Access Transmission Tariff, which requires each unit to be able to change output at the ramping rate specified in the Offer Data. The Order also resolved Enforcement’s finding that Dynegy violated § 35.41(b) when it maintained a prospective 16 MW capacity increase for Armstrong, one of the three dual-fuel unit facilities, based on (a) unit upgrades that were never completed by the previous owner and (b) the use of auxiliary generators during capacity tests, which was prohibited by PJM.

Constellation NewEnergy, Inc., Docket No. IN22-4-000, Order Approving Stipulation and Consent Agreement, 178 FERC ¶ 61,231 (March 29, 2022) Civil Penalty in the amount of $2,400,000 against Constellation NewEnergy, Inc. (CNE); disgorgement in the amount of $2,300,000 against CNE. On March 29, 2022, the Commission approved a Stipulation and Consent Agreement (Agreement) between FERC’s Office of Enforcement (Enforcement) and CNE.  In the Order the Commission found the settlement is in the public interest because the Agreement resolves on fair and equitable terms Enforcement’s investigation under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2021), into whether CNE complied with the pertinent California Independent System Operator (CAISO) tariff provisions regarding the treatment of imports for Resource Adequacy (RA) purposes.  CNE stipulates to the facts set forth in Section II of the Agreement, but neither admits nor denies the alleged violations.

Total Civil Penalties assessed for all years 2007 to present: $814,303,196.

Total Civil Penalties does not include the $30,000,000 assessed in Hunter and overturned on jurisdictional grounds by the U.S. Court of Appeals for the District of Columbia Circuit. Also does not include penalties proposed or assessed in the following currently pending matters: $20,160,000 in BP America Inc., et al. that is now at the US Court of Appeals for the Fifth Circuit; $16,800,000 against Powhatan Energy Fund LLC assessed in Powhatan Energy Fund, et al.; $213,600,000 civil penalty against TGPNA, $1,000,000 civil penalty against Hall, and $2,000,000 civil penalty against Tran proposed in Total Gas & Power North America, et al.; $1,515,738 civil penalty assessed against Vitol Inc. and $1,000,000 civil penalty assessed against Federico Corteggiano in Vitol Inc. and Federico Corteggiano; $15,000,000 civil penalty assessed against Boyce Hydro Power LLC; $42,000,000 civil penalty proposed against PacifiCorp; or $20,160,000 civil penalty proposed against Rover Pipeline Company, LLC and Energy Transfer Partners, L.P. (Docket No. IN19-4-000); or $40,000,000 civil penalty proposed against Rover Pipeline Company, LLC and Energy Transfer Partners, L.P. (Docket No. IN17-4-000); or $600,000 civil penalty proposed against Ampersand Cranberry Lake Hydro LLC.


Total Disgorgement ordered for all years 2007 to present: $558,085,444.

Total Disgorgement does not include amounts ordered in the following currently pending matters: $207,169 in BP America Inc., et al.; that is now at the US Court of Appeals for the Fifth Circuit; $3,465,108 assessed in Powhatan Energy Fund LLC; $9,180,000 proposed in Total Gas & Power North America , et al.; or $1,227,143, plus interest, assessed against Vitol in Vitol Inc. and Federico Corteggiano.


Total Other Payments ordered for all years 2007 to present: $188,150,573.

“Other payments” are defined as miscellaneous items ordered by the Commission that have a financial value, but are not considered a civil penalty or disgorgement. They include payments towards mitigation, enhancements, compliance activities, or a hurricane charitable fund. Payments included in this total are: $1,000,000 charitable donation ordered in Entergy Energy Services, Inc. in 2007; $1,000,000 in compliance plan improvements ordered in Duquesne Light Company in 2008; $2,000,000 in compliance plan improvements ordered in Edison Mission in 2008; $2,000,000 in mitigation and compliance plan improvements ordered in Grand River Dam Authority in 2011; $2,200,000 in public safety enhancements and computer system upgrades ordered in Erie Boulevard Hydropower, L.P. and Brookfield Power US Assets Management, LLC in 2014; $179,600,573 judgment in favor of PJM in a Texas state court in GreenHat Energy, LLC in 2022; $350,000 in compliance plan improvements ordered in ISO-New England, Inc. in 2022.

 

This page was last updated on October 14, 2022