FERC Issued Civil Penalty of $10,919,457 and Disgorgement of $7,080,543 to Voltus, Inc., and a Penalty of $1,000,000 to Gregg Dixon
Summary of NERC Penalties
REGION | WHEN? | ENTITY | COMPLIANCE AREA | VIOLATION | REASON | PENALTY AMOUNT |
|---|---|---|---|---|---|---|
MISO | Quarter 1 - January 2025 | Voltus, Inc. | MISO Tariff Compliance & Anti-Manipulation Rules | Violation of 18 C.F.R. § 1c.2 and MISO Tariff | Voltus registered demand response resources without their knowledge or consent and cleared Load-Modifying Resource capacity that could not have performed when dispatched. | $10,919,457 |
MISO | Quarter 1 - January 2025 | Voltus, Inc. | MISO Tariff Compliance & Anti-Manipulation Rules | Violation of 18 C.F.R. § 1c.2 and MISO Tariff | Voltus engaged in improper resource registration and misrepresented capacity availability, leading to unjust financial gains. | $7,080,543 |
MISO | Quarter 1 - January 2025 | Gregg Dixon | Anti-Manipulation Rules | Violation of 18 C.F.R. § 1c.2 | Dixon orchestrated a fraudulent scheme, causing Voltus to violate MISO Tariff provisions by misrepresenting demand response resource capabilities. | $1,000,000 |
Summary:
The Commission approved the Stipulation and Consent Agreement between the Office of Enforcement (Enforcement) and Voltus, Inc., and Gregg Dixon. The Agreement resolves Enforcement’s investigation into whether Dixon engaged in a fraudulent scheme in violation of the Commission’s Anti-Manipulation Rule, 18 C.F.R. § 1c.2, and/or caused Voltus to violate the MISO Tariff by registering demand response resources without those resources’ knowledge or consent and clearing Load-Modifying Resource capacity that would not have performed if the resources were dispatched, during the period from October 1, 2016, and continuing through June 1, 2020. Voltus and Dixon stipulate to the facts in Section II of the Agreement, but neither admits nor denies the violations alleged in Section III of the Agreement. Voltus agrees to (a) disgorge $7,080,543 in revenue; (b) pay a civil penalty of $10,919,457 to the United States Treasury; and (c) provide compliance monitoring reports to Enforcement. Dixon agrees to pay a civil penalty of $1,000,000 to the United States Treasury and to step down from Voltus’s Board of Directors, along with other restrictions in his role with Voltus going forward.
Associated Files: Voltus Dixon20250106-190FERC61008-IN21-10-000-Voltus, Inc. et al-Settlement Agreement
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