Company Seeks Delay in Paying FERC-Ordered Disgorgement, Penalty

North America Power Partners LLC has requested that FERC extend the deadline for it to pay a previously ordered disgorgement and civil penalty, citing a decrease in revenue, which has impacted its ability to meet the deadlines.

The disgorgement and civil penalty relate to a prior stipulation addressing allegations that, among other things, North America Power Partners LLC submitted offers in the PJM Synchronized Reserve Market on behalf of resources at times when North America Power Partners knew such resources were unavailable to respond to Synchronized Reserve Events (see prior story).

A 2010 FERC order required North America Power Partners LLC to pay:

• $1,150,000 in disgorgement to PJM within thirty days

• $804,000, plus interest, in disgorgement to PJM by December 31, 2011;

• $304,000, plus interest, in disgorgement to PJM by December 31, 2012; and

• $500,000 in a civil penalty to the United States Treasury by December 31, 2012

North America Power Partners LLC made its first two payments within the time prescribed by the order.

North America Power Partners LLC requested that FERC enter an order extending the deadline for its final disgorgement payment to PJM until June 30, 2013 and payment of the $500,000 civil penalty obligation until December 31, 2013.

"The payment plan agreed to in the Settlement Agreement was based upon NAPP's projected revenues through December 31,2012 ... NAPP experienced significantly less revenues in 2012 than it originally anticipated. In particular, changes in the PJM capacity market resulted in NAPP being unable to procure capacity in the auctions for this 2012-13 delivery period. As a result, NAPP did not receive any capacity payments from PJM for the period of June 2012 through May 2013. This loss of projected revenues adversely affects NAPP's ability to meet the timing of the final payments set forth in the Consent Agreement. While NAPP has sought to offset the loss of the 2012-13 projected PJM revenues from other sources, it has not been able to do so," North America Power Partners said.

North America Power Partners said that FERC Enforcement Staff does not oppose its motion.