Law360 Publishes Akin Gump Article on Maxim Settlement with FERC
Todd Brecher and David Applebaum, associate and partner, respectively, in Akin Gump’s energy regulation, markets and enforcement practice, have written the article “Maxim Settlement Reflects Expansive View Of FERC Rule,” which was published by Law360 and examines a recent order by the Federal Energy Regulatory Commission pertaining to Maxim Power Corp. and allegations that it violated the commission’s Anti-Manipulation Rule and duty of candor requirement through its energy market bidding conduct in ISO New England.
Maxim agreed to pay a civil penalty of $4 million and to disgorge $4 million in unjust profits to settle the dispute that Brecher and Applebaum write is noteworthy for both “its timing and its scope.” The settlement, they say, reflects the commission’s “expansive view of the Anti-Manipulation Rule.” They note that it also reflects FERC’s “continued emphasis on enforcing the duty of candor applicable to market-based rate sellers, particularly in independent system operator (ISO) and regional transmission organization (RTO) markets — a violation that carries the same potential civil penalties as market manipulation, but does not require proof of intent.”
Finally, the authors add that the settlement is notable for its timing and its scope, resolving allegations “that were already subject to a FERC penalty assessment proceeding and order that was being reviewed in federal court, as well as allegations that had not been subject to an agency enforcement proceeding.” Additionally, the settlement only involves Maxim’s corporate entities and releases from liability all Maxim employees.
To read the full article, please click here.