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U.S. Refuses to Drop Manipulation Case Against Late Power Trader

U.S. Refuses to Drop Manipulation Case Against Late Power Trader

The top U.S. energy regulator declined to drop manipulation charges against the estate of a former power trader after allegedly improper conduct by two of the agency’s lawyers. 

The Federal Energy Regulatory Commission “found no evidence” that the estate of Andrew Kittell, who co-founded GreenHat Energy LLC and died a year ago, was harmed by emails exchanged by lawyers discussing procedural issues, according to an order late Wednesday. The estate is facing a multi-million dollar fine after GreenHat’s trading behavior led to about $180 million in losses on the largest U.S. power grid.

FERC said it took immediate action to address the violation of separation of functions and that the emails weren’t about an issue pending before the agency. “We find that dismissing the action would serve no purpose other than to deprive the public of justice in the underlying matter,” according to the order.

Commissioner James Danly, who opposed charges to the estate because of Kittell’s death, dissented. He called the “breezy declaration” of a serious violation by lawyers troubling as it appears to hold the enforcement office to a different standard. 

©2022 Bloomberg L.P.