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By Ted Caddell and Michael Brooks  The Federal Energy Regulatory Commission issued notice Wednesday that it may seek $29.8 million in fines from hedge fund twins Rich and Kevin Gates over a PJM trading scheme that became the centerpiece of a debate over FERC enforcement policy during Commissioner Norman Bay’s...

(Click to zoom) Up-to-congestion trading volumes in PJM have dropped by about 85% since September, after the Federal Energy Regulatory Commission said it might make the transactions liable for uplift assessments. The average volume of cleared up-to-congestion trades had increased 22.5% in the first three quarters of 2014, compared to...

By Michael Brooks PJM will forgo $10.2 million in balancing operating reserve (BOR) charges resulting from transactions that two trading companies characterized as internal bilateral transactions (IBTs) under a settlement approved by the Federal Energy Regulatory Commission. PJM, which contended DC Energy and Scylla Energy mischaracterized the transactions to avoid...

PJM Polling Members on Next Step Up-to-congestion trading plummeted by about two-thirds this week following a Federal Energy Regulatory Commission order that could result in sharply increased costs for traders. On Aug. 29, the commission ordered a Section 206 proceeding to determine whether PJM is improperly treating UTCs differently than...

The Federal Energy Regulatory Commission last week ordered a review of PJM’s rules regarding up-to-congestion transactions (UTCs), saying the RTO may be discriminating in how it treats these and other financial trades. FERC’s ruling (EL14-37) came in response to a PJM filing in June defining UTCs as virtual trades and...

Members agreed last week to consider changing credit requirements for virtual transactions in January and February 2015 despite opposition from PJM, which said changes could increase members’ exposure to defaults. The Market Implementation Committee Wednesday approved a problem statement to consider changing the credit requirements for increment offers and decrement...

By Rich Heidorn Jr. WASHINGTON – When the Federal Energy Regulatory Commission held a technical conference on capacity markets last year, many commenters pointed to PJM as the source of best – if imperfect – practices. At FERC’s workshop yesterday on uplift and price formation, it was NYISO and MISO...

The Market Implementation Committee approved several changes recommended by the Market Settlement and Credit subcommittees regarding data submission deadlines and credit requirements. Power Meter and InSchedule One set of changes, which will be effective June 1, 2015, would extend the deadlines for electric distribution companies (EDCs) to submit Power Meter...

By Ted Caddell and Rich Heidorn Jr. An energy trading firm that has been the subject of a FERC investigation for more than three years without being charged has decided to go on offense by releasing documents it says proves it has been unfairly hounded. The dispute provides a case...

Kevin (L) and Rich (R) Gates Kevin and Rich Gates are identical twins — and as they proudly note on their website — former Eagle Scouts who were principals in the investment funds under investigation by FERC. Both hold chemical engineering degrees from the University of Virginia and now serve...