Constellation to Pay $645,000 Under Settlement with FERC

FERC approved a settlement between its Office of Enforcement (Enforcement) and Exelon Corporation to resolve an investigation into Constellation Energy Commodities Group's (CECG's) alleged submission of inaccurate information.

According to FERC's order: "As admitted by Exelon and described in the Agreement, during the Relevant Period [January 22, 2010 thorough March 24, 2010], CECG submitted transactions designated as Wheeling Through transactions. The use of the Wheeling Through designation indicates to CAISO that the Scheduling Coordinator, here CECG, is wheeling power through California from the linked import point to the linked export point. The Tariff required a Wheeling Through transaction to have a resource outside of CAISO and a Load outside of CAISO. CECG, however, was not wheeling power and lacked a resource or a Load outside CAISO for these Wheeling Through transactions."

"Exelon admits that CECG's designation of Wheeling Through transactions violated 18 C.F.R. § 35.41(b) of the Commission's regulations. This regulation requires a market-based rate seller, such as CECG, to provide accurate and factual information and prohibits such sellers from submitting false or misleading information or omitting material information in any communication with, among others, independent system operators, such as CAISO. CECG violated these provisions by submitting Wheeling Through transactions that did not meet the Tariff's requirements," FERC said in its order.

Exelon agreed to pay a civil penalty of $500,000, to disgorge $145,928 in unjust profits, plus interest, and to submit compliance reports to Enforcement.

Docket No. IN13-17-000