Energy trader JPMorgan Chase & Co. today vehemently denied allegations that it manipulated California's electricity market.
The big Wall Street investment bank also demanded that California officials return the millions they recovered from JPMorgan as part of the investigation into alleged misconduct.
The Federal Energy Regulatory Commission is investigating claims that JPMorgan's trading arm in Houston extracted $73 million in improper profits by manipulating bids in California's electricity market.
The claims were brought by the California Independent System Operator, a quasi-state agency in Folsom that runs the state's electricity grid. The ISO said it recouped $20 million so far from the company through settlements of wholesale electricity trades.
In a legal filing today with the federal agency, JPMorgan said those funds were "unlawfully withheld" and should be returned to the company, with interest.
The company also said the ISO is relying on "feeble arguments" to try and convince federal investigators that any wrongdoing occurred.
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