Bloomberg reports that the FERC, which has pledged to combat manipulation of prices, began its probe after reports last year of bidding practices by JPMorgan that the California and Midwest grid operators deemed to be abusive, according to documents provided by the Washington-based agency.
'Three of the bidding techniques had together resulted in at least $73 million in improper payments', the agency said in documents filed Monday, citing estimates by the two system operators.
'We have been responding to a FERC investigation into certain activities in our federally approved power business', Jennifer Zuccarelli, a JPMorgan spokeswoman, said Tuesday in an e-mail. 'We believe we have complied in all respects with the law, as well as FERC rules and applicable tariffs, governing this market'.
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