California won another battle today in its fight with investment bank JPMorgan Chase & Co. over wholesale electricity prices.
A federal agency dismissed JPMorgan's complaint that it was underpaid $3.7 million for electricity last spring by the California Independent System Operator, which runs the state's transmission grid.
The dispute is separate from two larger fights that are still pending. The ISO has accused the bank's traders of using questionable bidding practices to extract $73 million in excess profits. The Federal Energy Regulatory Commission is still looking into the matter but has recently suspended JPMorgan for six months from charging "market-based" rates for its electricity, saying the bank gave investigators false information.
In another case, the ISO charged that JPMorgan is improperly stonewalling a power-plant renovation in Huntington Beach that could be crucial to preventing blackouts next summer across Southern California. FERC is investigating that as well.
The ISO often buys electricity to cover last minute shortfalls, and then bills the retail utilities for the cost. JPMorgan said it provided the ISO with power 18 times between last April and June, but was underpaid.
The ISO said the complaint was "without merit," said spokeswoman Stephanie McCorkle.
FERC dismissed the complaint because JPMorgan hadn't yet exhausted the settlement dispute procedures at the ISO.
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