FERC finds Exelon didn't manipulate market

Federal regulators Wednesday terminated an investigation into alleged market manipulation by Exelon Corp. and its utility unit Peco Energy Co. and trading affiliates in the Northeast in 1999. The Federal Energy Regulatory Commission said it found no proof the company and its affiliates improperly shared information about unit outages in the PJM Interconnection LLC.

By the OGJ Online Staff

HOUSTON, Dec. 19 -- Federal regulators Wednesday terminated an investigation into alleged market manipulation by Exelon Corp. and its utility unit Peco Energy Co. and trading affiliates in the Northeast in 1999.

The Federal Energy Regulatory Commission said it found no proof the company and its affiliates improperly shared information about unit outages in the PJM Interconnection LLC in November and December of 1999. PJM manages the transmission grid in parts of Pennsylvania, New Jersey, Maryland, and Washington, DC.

FERC alleged that PECO Energy, Exelon's electric transmission and distribution business in southeastern Pennsylvania, may have operated its transmission system to benefit Exelon's Power Team, the company's wholesale trading arm, or that PECO may have shared nonpublic transmission information with Power Team.

Elizabeth Moler, Exelon senior vice-president and former FERC chairwoman, said Exelon was "delighted" FERC accepted the company's evidence refuting the allegations. She said the company also supported PJM's new procedures to make the market more open and transparent. FERC ordered PJM to require generators to schedule planned unit outages a month in advance.

Chicago-based Exelon was formed last year when Philadelphia Electric Co.'s parent company acquired Chicago's Commonwealth Edison. The distributes electricity and gas to 5 million customers in Illinois and Pennsylvania and also has holdings in infrastructure services, energy services, and telecommunications.

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