Avista agrees to $2.1 million fine to settle charges
By the OGJ Online Staff
HOUSTON, Aug. 21 -- Avista Energy, a unit of Avista Corp., agreed to $2.1 million in fines and penalties to settle charges of manipulating prices of electricity futures contracts traded on the New York Mercantile Exchange, the US Commodity Futures Trading Commission (CFTC) said Tuesday.
Without admitting wrongdoing, the CFTC said the Spokane, Wash., company, Thomas Johns, its former vice-president of trading, and former trader Michael Griswold consented to an order settling the case.
The agency charged that on 4 days between April and August 1998, Avista Energy manipulated the settlement prices of the Palo Verde and California-Oregon-Border electricity futures contracts traded on the NYMEX to increase the company�s net gain on certain over-the-counter option positions, whose value was based on the settlement prices at issue.
The settlements require Avista Energy, Griswold, and Johns to cooperate in any further investigations and proceedings related to the case.
The CFTC also filed a complaint against two other former Avista Energy employees and a NYMEX floor trader in connection with the scheme. The agency said a public hearing will be held on the charges soon.