Company News

PSEG settles U.S. power market violation allegations

April 26 (Reuters) - Public Service Enterprise Group Inc (PSEG) on Wednesday agreed to settle allegations that its trading unit violated power market rules between 2005 and 2014 and pay an $8 million civil penalty and disgorge $28.9 million plus $4.5 million in interest, according to federal energy regulatory filings:

* The Office of Enforcement at the U.S. Federal Energy Regulatory Commission (FERC) said PSEG’s PSEG Energy Resources & Trade LLC unit violated electricity market rules by submitting incorrect cost-based bids.

* PSEG has said the allegations were not new since it self-reported the errors in April 2014 and have discussed the issue on earnings calls and in U.S. Securities and Exchange filings for the past few years.

* PSEG said it had set aside $35 million to cover potential liabilities related to the issue.

Reporting by Scott DiSavino; editing by Jonathan Oatis