Missouri PSC Approves Grain Belt Express HVDC Transmission Project

LCG, March 22, 2019--The Missouri Public Service Commission (PSC) approved a request filed by Grain Belt Express Clean Line LLC for a certificate of convenience and necessity (CCN) to construct, own, operate, control, manage and maintain a high-voltage, direct-current (HVDC) transmission line to move power east from wind farms in western Kansas to load centers in Missouri, Illinois and Indiana.

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FPL Targets 1,490 MW of Solar Capacity for New Community Solar Program

LCG, March 15, 2019--Florida Power & Light Company (FPL) Wednesday filed a proposal with the Florida Public Service Commission (PSC) for a new community solar program, FPL SolarTogether. Pending PSC approval, FPL plans to install 1,490-MW of capacity at 20 new solar power plants across FPL's service territory to meet anticipated customer enrollment in the program.

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Industry News

J.P. Morgan Chase and Citigroup Settle Regarding Roles in Enron Debacle

LCG, July 29, 2003J.P. Morgan Chase and Citigroup have agreed to pay nearly $300 million to Enron stockholders and the city and state of New York.

J.P. Morgan Chase and Citigroup, the countrys largest banks, took part in transactions with Enron that were by and large legal but still one step short of acceptable. According to regulators, the transactions mislead investors in an intentional manner.

J.P. Morgan Chase participated in seven prepays with Enron Corp., loaning roughly $2.6 billion to the company over a course of four years. Citigroup lent Enron $3.8 billion over two and a half years in the same way.

The banks prepay arrangements with Enron were routed through a series of corporations, some located offshore. All but two of the multiple trades completely matched one another, having the net effect of Enron being simultaneously a merchant and receiver of exactly the same amount of commodity, but leaving Enron with cash to be paid back to the bank at a particular interest rate. The confusing network of transactions functioned as a quiet loan, unnoticed by Enrons investors.

The banks attorneys plead their cases before the Senate Permanent Subcommittee on Investigations last year, insisting that the banks were not responsible for clients behavior and that the transactions were legally sound.

The Securities and Exchange Commission and the District Attorney of Manhattan reached the agreement with the banks yesterday. The settlement, while not a trial verdict, implies that the principle of the behavior is as important as its legal authenticity. It shows that bankers, accountants, and lawyers can be held responsible for the action of their clients.

J.P. Morgan Chase will dole out $135 million to Enron investors, and Citigroup will pay $101 million. The banks will jointly give $50 million to the city and state of New York. In addition, Citigroup will pay $19 million regarding allegations of manipulative transactions with energy company Dynegy.

The banks will also design a new set of standards, including improved oversight, and submit the revised standards to the Federal Reserve.

The Securities and Exchange Commission is still conducting investigations into Enron and other companies.

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