ETRACOM Issues Statement On Settlement With FERC

ETRACOM LLC issues a statement concerning its recent settlement with FERC (see story here)

ETRACOM LLC stated, "ETRACOM LLC is very pleased to announce the conclusion of a Settlement Agreement reached with the Federal Energy Regulatory Commission ('FERC')."

ETRACOM LLC stated, "Following a victory in Federal district court which granted ETRACOM full discovery rights under a de novo standard of review as to the facts and the law, ETRACOM and FERC successfully engaged in mediation."

ETRACOM LLC stated, "In the settlement, FERC dropped its long-standing position that an individual trader in this case be assessed a civil penalty, and after substantial reductions in the monetary demands, a resolution of the matter without further litigation became possible. As the matter remained in fact discovery and expert discovery had not begun, ETRACOM found its known future litigation costs, much less any indirect costs to the business, to substantially exceed the negotiated payoff under the FERC settlement. As part of the settlement, ETRACOM neither admits nor denies that violations occurred."

ETRACOM LLC stated, "The details of the case and ETRACOM’s views on FERC Office of Enforcement’s ('Enforcement') position, as reflected in its numerous filings and press statements, are well-known. ETRACOM opposed Enforcement’s brazen misinterpretation and manipulation of the record; absurd theories which rest on reverse engineering of conclusions to produce a 'fraud by hindsight;' reliance on circumstantial inferences unhinged from the facts; ignoring of significant exculpatory evidence, and inappropriate 'sandbagging' in reply to ETRACOM filings. See our website http://www.ETRACOMvFERC.com ."

ETRACOM LLC stated, "The background against which this conduct by Enforcement unfolded was an investigation that dragged on for over 5 years and which saw a kaleidoscope of lead attorneys and their bosses with the diffusion of individual responsibility becoming the norm at Enforcement."

ETRACOM LLC stated, "All of this was happening while Enforcement had unfettered access and ability to influence the Commission; ETRACOM was denied comparable access or ability."

ETRACOM LLC stated, "Regardless of the outcome of our case, ETRACOM remains optimistic on the role of FERC in regulating and enforcing energy markets and on long-term reform of the enforcement process. ETRACOM hopes that the ruling on the nature and scope of de novo review by the court in ETRACOM’s favor (and similarly in other cases in the federal courts) is the beginning of meaningful reform of the current extractive Enforcement program at FERC."

ETRACOM LLC said that the departure of former FERC Chairman Norman Bay last year, "opens the way for its drastic reform by the current Commission at FERC, without waiting for further dismantling actions by courts. The current Commission should conduct the expedient reorganization and reorientation of its Enforcement program."