Feds Fine Durham Energy Efficiency Co $722M
2 days ago
- #energy fraud
- #market manipulation
- #FERC enforcement
- FERC fined American Efficient $722 million and ordered repayment of over $410 million in unjust profits for alleged fraud in its energy efficiency program.
- American Efficient's business model involved purchasing sales data and environmental attributes from retailers, then using that data to bid projected energy savings into capacity auctions.
- FERC commissioners unanimously found the company's conduct fraudulent, with allegations of market manipulation and betrayal of environmental principles.
- American Efficient defends its model, claiming micropayments to retailers influence supply chains and that its contracts did not require proof of demand reduction causality.
- Legal challenges remain, as the company may appeal civil penalties, and a criminal referral to the DOJ is possible, while capacity auction participation is now limited.