The FERC’s Anti-Market Manipulation Rule: Trends and Developments
In less than a month, on July 21 and August 10, two federal District Court rulings stated that a "de novo" review of Federal Energy Regulatory Commission's (FERC's) enforcement cases will not suffice for the penalty enforcement proceedings of the Commission. From Latin, which means "over again" or "from the new", a de novo review entails a court to conclude on a case without reference to the legal decisions undertaken by the previous court that handled it. Ruling on matters of law without reference to the latter's findings, the concluding court may, however, refer to the previous investigators' compiled records to determine and review the facts and other evidences. As such, FERC's enforcement targets, according to federal District Courts will be given a full civil trial and will be treated as ordinary civil action.
Two significant cases which involved big names in the energy sector have been hotly debated in several of the FERC's market manipulation cases. In its July 21-decision, Federal District of Massachusetts Judge Mastroianni denied Maxim Power Corp.'s motion to dismiss FERC's petition for an order that affirmed its Order Assessing Civil Penalties but pointed that the review of the assessed civil penalty pursuant to FPA Section 31(d)(3) will be treated as an ordinary civil action requiring a trial de novo. Whereas in its August 10 decision, U.S. District Court for the District of Columbia Judge John Bates stressed that the court cannot simply depend on the commission's compiled records when deciding on the existing cases.
Our panel of key thought leaders and practitioners will offer a discussion of the fundamentals as well as updates regarding the latest and significant issues surrounding the FERC's Anti-Market Manipulation Rule. This LIVE webcast aims to help you be well-versed of the latest trends and developments in the energy industry, as well as better understand the legal aspects of FERC's enforcement cases.
Some of the major topics that will be covered in this course are:
- Overview of the Section 31(d)(3) of the Federal Power Act (FPA)
- The De Novo Review Standard in FPA
- Background of the District Court Rulings
- FERC Anti-Manipulation Enforcement Targets
- Scrutiny of the Two Significant Cases
- FERC v. Maxim Power Corp.
- FERC v. City Power
Branko Terzic, Managing Director
Berkeley Research Group, LLC
- Introduction; role and history of FERC; background, including Enron; legal and policy considerations; risk of market manipulation for new entrants.
Victoria Earls, Attorney, Litigation Department
Paul Hastings LLP
- Overview of process at the Commission; discussion of 2016 FERC report on enforcement; Rule 670 framework for investigation; how has rule progressed after 10 years of testing?
John Lilyestrom, Partner
Hogan Lovells US LLP
- Focus on litigation; analysis of cases, including Barclays; procedural issues and hurdles.
Todd Schatzki, Vice President
Analysis Group, Inc.
- Economist’s focus on litigation issues; expert discovery process; defining market manipulation through lens of Barclays case; where things may be heading.
Who Should Attend:
- Corporate Counsel (Energy Companies)
- Attorneys with Energy/Environmental Practice
- Executives from Energy Companies
- Compliance Officers
- Officers Involved in FERC Regulatory Compliance
- Energy Trading Practitioners
- Energy Industry Watchers
- Energy Sector Lawyers
- Other Energy Sector Related Professionals
Victoria Earls is an attorney in the Litigation practice of Paul Hastings and is based in the firm’s Washington office.
Victoria has represented hedge funds, financial institutions, traders, and other individuals in public and non-public investigations by FERC and the CFTC involving alleged violations of anti-fraud prohibitions, market manipulation rules, and in other enforcement matters.
In addition, Victoria has represented a multitude of domestic and international individuals and business entities, ranging from Fortune 500 companies to small partnerships and traders in investigations by the DOJ, SEC, various Congressional entities, and other government regulatory agencies involving alleged violations of commodities manipulation, securities, tax, fraud, antitrust, obstruction of justice, and FCPA regulations and laws.
Victoria Earls is an attorney in the Litigation practice of Paul Hastings and is based in the firm’s Washington office. …
For over 25 years, John Lilyestrom has focused his energy law practice on the competitive and commercial consequences of electricity regulation, with particular emphasis on regional transmission operator markets. John represents modern electric market participants, including electric utility companies, electric power marketers, independent power producers, and end-use consumers of electricity before the Federal Energy Regulatory Commission (FERC), state regulatory agencies, and federal and state courts.
He has represented utilities in mergers and other actions concerning the alleged exercise of generation market power, transmission and wholesale service rates, and the application of standards of conduct and affiliate restrictions. John has also advised electric utilities in assessing commercial opportunities arising from, and the regulatory implications of, electric industry restructuring and corporate reorganization. He has also represented national and regional electric reliability organizations in matters related to the interaction of regulation and electric reliability.
For over 25 years, John Lilyestrom has focused his energy law practice on the competitive and commercial consequences of electricity …
Branko Terzic is a Managing Director at Berkeley Research Group (BRG) LLC and a Nonresident Senior Fellow of the Atlantic Council’s Global Energy Center in Washington, DC. His service in government includes that of Commissioner on the U.S. Federal Energy Regulatory Commission, Commissioner on the State of Wisconsin Public Service Commission and Chairman of the State of Wisconsin Racing Board. In business prior to joining BRG, Terzic served as Executive Director of the Deloitte Center for Energy Solutions ; Global Regulatory Policy Leader for Deloitte & Touche LLP; Chairman, President and CEO of Yankee Energy System, Inc.: Managing Director Arthur Andersen Economic Consulting, Special Investigations Engineer at Wisconsin Electric Power Company and as a management consultant. He has been a member of the National Petroleum Council and National Coal Council and is a former Chairman of the United Nations Economic Commission for Europe (UN ECE) Ad Hoc Group of Experts on Cleaner Electricity Production. A frequent speaker at industry forums and a prolific writer Terzic currently appears regularly on CNN International and Fox Business TV programs. Terzic was elected to the Energy Efficiency Forum Hall of Fame (2009) and was honored with the “Champion Award” by The Women’s Council on Energy and Environment (2008) as well as other industry awards. Dr. Terzic appears regularly as a commentator on global oil and energy issues for CNN International and FOX Business channels. He is a faculty member of the Washington Campus consortium of 16 MBA schools, is a founder of the Society of Depreciation Professionals and member of the ASME, AEE, IAEE, Energy Bar Association and other organizations. Branko Terzic holds a BS in Energy Engineering and was awarded an honorary Doctor of Sciences Engineering degree both from the University of Wisconsin-Milwaukee.
Branko Terzic is a Managing Director at Berkeley Research Group (BRG) LLC and a Nonresident Senior Fellow of the Atlantic …
Todd Schatzki, Vice President; Ph.D., public policy, Harvard University; M.C.P., urban studies and planning, Massachusetts Institute of Technology; B.A., physics, Wesleyan University
Dr. Schatzki is an expert in energy and environmental economics and policy, with experience in electricity, natural gas, and oil markets. His work with clients includes strategic and financial assessment of market decisions, regulatory and rulemaking proceedings, and litigation. He has testified before state and federal commissions, including the Federal Energy Regulatory Commission, on a range of matters. Dr. Schatzki has also provided litigation support in several high-profile cases related to alleged energy market price manipulation, as well as other energy sector litigation, including contract disputes, shareholder derivative suits, antitrust allegations, and environmental discharges and contamination.
Dr. Schatzki has worked extensively with ISO and RTO market operators on market design, the evaluation of proposed market rule changes, the analysis of market performance, market monitoring, and the implementation of market rules. Other areas of expertise include retail electricity markets and ratemaking, energy infrastructure, natural gas markets, and environmental regulation and damages. Dr. Schatzki’s research includes reports developed for organizations such as the Electric Power Research Institute, Edison Electric Institute, Federal Energy Regulatory Commission, and National Association of Regulatory Utility Commissioners.
Todd Schatzki, Vice President; Ph.D., public policy, Harvard University; M.C.P., urban studies and planning, Massachusetts Institute of Technology; B.A., physics, …
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Areas of Professional Practice
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Analysis Group is one of the largest private economics consulting firms in North America, with more than 700 professionals across 11 offices in the United States, Canada, and China. Since 1981, we have provided expertise in economics, finance, health care analytics, and strategy to top law firms, Fortune 500 companies, and government agencies. Our internal experts, together with our network of affiliated experts from academia, industry, and government, offer our clients exceptional depth of expertise.