FERC Imposes $66,700,000 in Penalties and Disgorgement on Linde and NIPSCO for MISO Tariff Violations
Summary of NERC Penalties
REGION | WHEN? | ENTITY | COMPLIANCE AREA | VIOLATION | REASON | PENALTY AMOUNT |
|---|---|---|---|---|---|---|
FERC | Quarter 1 - January 2024 | Linde, Inc. and Northern Indiana Public Service Company (NIPSCO) | FERC's Regulations and MISO Tariff | Violations of the Federal Power Act, MISO Tariff, and Commission Regulations | The stipulated violations pertain to Linde's participation, through NIPSCO, in a MISO demand response program. The investigation by the Office of Enforcement concluded that there were violations of the Federal Power Act, the MISO Tariff, and Commission regulations. Both Linde and NIPSCO stipulated to the facts in the Agreement. | $66,700,000 |
Summary:
In response to violations of the MISO Tariff, the Federal Energy Regulatory Commission (FERC) approved the Stipulation and Consent Agreement (Agreement) between the Office of Enforcement (Enforcement) and Linde, Inc., (Linde) and Northern Indiana Public Service Company (NIPSCO). The Agreement resolves Enforcement’s investigation into whether Linde and/or NIPSCO violated the Federal Power Act, the MISO Tariff, or Commission regulations, in connection with Linde’s participation, through NIPSCO, in a MISO demand response program. Linde and NIPSCO stipulated to the facts set forth in the Agreement. Linde agreed to (a) pay a $10,500,000 civil penalty to the U.S. Treasury and (b) pay $48,500,000 in disgorgement. NIPSCO agreed to pay $7,700,000 in disgorgement. NIPSCO agreed to take specific steps with its state regulator to ensure that disgorged funds paid to NIPSCO will be paid to NIPSCO ratepayers (other than Linde). Linde agreed that, should it ever participate as a demand response unit in MISO in the future, it will provide training to its staff and alert Enforcement and the MISO Market Monitor.
Associated Files:
20240104-186FERC61009-IN24-3-000-Linde Inc et al-Settlement Agreement
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