Posted: Jul 30, 2012 5:46 AM by Associated Press
FOLSOM, Calif. (AP) - California officials say a big electricity trader has apparently figured out a way to exploit vulnerabilities in the state's $8 billion-a-year electricity market, just like Enron Corp. did a decade ago.
The Sacramento Bee says authorities are investigating a subsidiary of the New York investment bank JPMorgan Chase & Co., which may have grabbed an extra $73 million during 2010 and 2011.
The California Independent System Operator, the Folsom-based agency that runs the state's power grid and oversees last-minute electricity sales, has recovered $20 million from the company so far.
The Federal Energy Regulatory Commission is investigating on California's behalf and the fate of the remaining $53 million claimed by the ISO isn't clear.
The investigation became public when the commission filed suit in Washington in July against JPMorgan.
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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