Following accusations of energy market manipulation, J-P Morgan Chase has agreed to pay California’s Independent System Operator $124 million. California ISO oversees the state’s energy grid. General Counsel Nancy Saracino says California ISO is very satisfied with the settlement.
“This is very carefully quantified as dollar for dollar, every amount that they were paid due to their misconduct,” she said.
The money will be divided up among the utilities that were affected by the alleged market manipulation. Saracino said the majority of the money will go to the state’s three investor owned utilities.
“We have the ability to identify which entities paid those extra costs and send it back to them through our market,” she said.
It will be up to the utilities and the Public Utilities Commission to decide how individual ratepayers will be compensated.
JP Morgan Chase has agreed to the settlement, but has not admitted any wrong doing.