US regulator orders GreenHat Energy to pay $242m fine

The US energy regulator on Thursday ordered GreenHat Energy LLC to pay $229 million in civil penalties and $13.1 million in unjust profits on allegations of electric market manipulation.

The US Federal Energy Regulatory Commission enforcement staff's report raises serious allegations about market manipulation that cost consumers in the PJM market nearly $180 million, Chairman Richard Glick said in a press release. The agency alleges that GreenHat Energy sent false price signals into the PJM market, the largest in the country, by purchasing Financial Transmission Rights (FTR) based on minimal collateral, deliberately made false statements to PJM to try to avoid a collateral call and rigged FTR auctions.