U.S. FERC files notice of alleged violations on Constellation

Reuters

Oct 8 (Reuters) - U.S. federal energy regulators filed anotice of alleged violations against Exelon Corp's Constellation Energy Commodities Group unit for violating marketrules between January and March 2010.

The Office of Enforcement at the Federal Energy RegulatoryCommission (FERC) said its staff preliminarily determinedConstellation also failed to provide accurate information to theCalifornia power grid operator.

"The transactions at issue occurred during two months in2010 and there is no allegation of any manipulative conduct,"Constellation said in a statement.

"We are working with the Commission staff to achieve areasonable resolution of this matter, which we hope will occurquickly," Constellation added.

FERC officials had no comment on the notice of allegedviolations.

In recent years, FERC has become more aggressive in pursuingmarket violations and has issued over $1 billion in fines sincethe Energy Policy Act of 2005 significantly increased thepenalty the commission can impose to $1 million per day perviolation from the prior cap of $10,000 a day.

In 2012, FERC imposed one of its biggest fines - $135million - on Constellation for activities prior to its mergerwith Exelon and forced the company to disgorge $110 million inunjust gains.

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