FERC Issues Show Cause Order Proposing $6.8M in Civil Penalties to Vitol Inc. and Individual Trader and $1.2M Disgorgement for Alleged CAISO Market Manipulation
Recently, the Federal Energy Regulatory Commission issued an order to show cause why Vitol Inc. and its co-director of financial transmission rights trading should not be found to have engaged in market manipulation by selling physical power in CAISO at a loss to eliminate expected losses on Vitol’s Congestion Revenue Rights. The Order directed Respondents to show cause why they should not be found to have committed market manipulation, pay civil penalties, and disgorgement, as well as to make an election under Federal Power Act § 31(d)(1) whether to proceed before an administrative law judge or opt to have the commission assess a penalty and then proceed with de novo review by a federal district court. The authors of this article discuss the order to show cause.
The Federal Energy Regulatory Commission issued an order to show cause and notice of proposed penalty to Vitol Inc. and Vitol’s co-head of financial transmission rights trading, Federico Corteggiano (together, “Respondents”), directing the Respondents to show cause why they should not be found to have violated the anti-manipulation provisions of the Federal Power Act and the Commission’s regulations.
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“FERC Issues Show Cause Order Proposing $6.8M in Civil Penalties to Vitol Inc. and Individual Trader and $1.2M Disgorgement for Alleged CAISO Market Manipulation,” by Mark R. Haskell, George D. Billinson, and Lamiya N. Rahman was published in the October 2019 edition of Pratt’s Energy Law Report (Vol. 19, No. 9), an A.S. Pratt Publication, LexisNexis. Reprinted with permission.
This article was first published as a Blank Rome Energy Advisory (July 2019).