U.S. FERC says PSEG unit violated power market rules

(Reuters) - Staff at the U.S. Federal Energy Regulatory Commission (FERC) said they have preliminarily determined a unit of New Jersey energy company Public Service Enterprise Group Inc violated electricity market rules by submitting incorrect cost-based bids, according to a filing made available on Monday:

** PSEG spokesman Mike Jennings said the staff notice was “not new.”

** “We self reported the errors in April 2014 and have discussed the issue on earnings calls and in SEC (U.S. Securities and Exchange) filings for the past few years,” Jennings said.

** “The notice is routine and part of FERC’s process,” Jennings said, noting the company had set aside $35 million to cover potential liabilities related to the issue.

** The staff at FERC’s Office of Enforcement alleged in a notice dated April 5 that PSEG Energy Resources & Trade LLC made the “false and misleading statements” in the PJM market as early as 2005 through March 2014.

** PJM Interconnection operates the power grid in the U.S. Mid Atlantic and Midwest region.