Feb 1 JP Morgan Chase & Co's six-month
power trading ban will not affect existing contracts the bank
has already sold, the Federal Energy Regulatory Commission said
in a filing on Friday.
The investment bank had asked FERC to clarify whether the
ban on selling electricity at market-based rates in some U.S.
markets, which is due to start on April 1, would apply to
electricity contracts it has already sold for that period.
"Where the Commission has previously suspended a seller's
market-based rate authority upon finding or presuming that a
seller has market power," FERC said, "the contractual
obligations entered into by the seller prior to the suspension
have remained in effect."
In the six months from April 1, JP Morgan will only be
allowed to make physical electricity sales at cost. Market-based
rate authority allows a company to trade power at whatever price
the market will bear.
FERC imposed the suspension on JP Morgan Ventures Energy
Corp's, the bank's power trading arm, back in November, saying
it had failed to disclose information in an investigation into
FERC has not accused the U.S. bank of market manipulation.
JP Morgan has said it will fight the sanction.
A JP Morgan spokeswoman declined to comment on the FERC
ruling on Friday.
FERC is currently debating whether to grant the bank a