NEWS RELEASE — Public Service Dept.
December 4, 2012
Sheila Grace, Special Counsel, Public Service Department
Montpelier, VT – A Federal Energy Regulatory Commission investigation into whether Constellation Energy Commodities Group violated an anti-manipulation rule has resulted in an agreement requiring a disgorgement fund to be used for the benefit of electric energy consumers in Vermont and elsewhere in New England.
The FERC-approved joint agreement among the New England parties including the Vermont Department of Public Service establishes Vermont’s share of the fund at $930,982.00. Vermont’s share will be allocated among the Vermont distribution utilities based on each utility’s proportion of energy use during the investigated time period.
Each distribution utility will be required to apply the funds for the direct benefit of its customers, either as a bill credit or reduction in their operating cost.
On the subject, Commissioner Elizabeth Miller said: “We participated in the FERC proceeding to ensure that Vermont received a fair share for Constellation Energy’s alleged market manipulation, which may have resulted in higher regional energy prices. I am glad that Vermont consumers will see these funds returned.”
Commissioner Miller noted that the FERC-approved agreement also requires $1 million of the disgorgement fund be paid to ISO-NE, the New England grid operator, to enhance its surveillance capabilities in order to prevent manipulative trading practices region-wide.