The Federal Energy Regulatory Commission (FERC) is probing possible power market manipulation in California and other Midwest states by JPMorgan Chase, the Financial Times reports citing court documents.
The bank has been subpoenaed by FERC twice in the last three months, the report said.
According to the FT, the energy regulator is probing JPMorgan’s power market bidding practices.
FERC says JPMorgan’s practices may have inflated electricity costs by $73 million, the FT reports.
As part of the probe, FERC filed a petition in federal court requesting that JPMorgan produce 25 emails. The bank maintains that those emails are privileged, the report said.
The FT also points out that JPMorgan mentioned the investigation in its latest 10-Q regulatory filing, but didn’t provide many details about it.
A bank spokesperson told the newspaper they believed they have “complied in all respects with the law, as well as FERC rules and applicable tariffs, governing this market.”