Josco Energy Corporation (Josco) Assessed Civil Penalty of $5,000 for Lack of Candor
- August 22, 2024
Summary of NERC Penalties
REGION | WHEN? | ENTITY | COMPLIANCE AREA
| VIOLATION | REASON | PENALTY AMOUNT |
|---|---|---|---|---|---|---|
NYISO | Quarter 3 - August 2024 | Josco Energy Corporation | FERC, NYISO | NYISO's Tariff Section 26.2.1.3 & FERC’s Duty of Candor Rule (18 C.F.R. § 35.41(b)) | Failure to disclose ongoing investigations by the NYPSC in the CQF submission, potentially impacting financial condition, and providing misleading information. | $5,000 |
Summary:
FERC Enforcement determined that Josco violated Section 26.2.1.3 of the credit reporting provisions of NYISO’s Tariff and the Commission’s duty of candor rule,18 C.F.R. § 35.41(b).13. NYISO Tariff section 26.2.1.3 provides that, “unless prohibited by law, a Customer shall inform the ISO of the existence of any ongoing investigations of which the Customer is aware by the Securities and Exchange Commission, the Department of Justice, the Federal Energy Regulatory Commission, or the New York Public Service Commission which could have a material impact on the Customer’s financial condition.” Enforcement determined that Josco failed to timely disclose in its April 7, 2021, CQF submission that it was under investigations by the NYPSC in multiple proceedings that could have a material impact on its financial condition.
Additional Discussion:
Section 35.41 (b) of the Commission’s regulations requires that a Seller “provide accurate and factual information and not submit false or misleading information, or omit material information in any communication with Commission-approved independent system operators.” Enforcement determined that Josco is a “Seller” subject to Section 35.41(b) and that Josco’s failure to disclose that it was under NYPSC investigations that could have a material impact on its financial condition violated that section.
Determination of Appropriate Sanctions and Remedies
In recommending the appropriate remedy, Enforcement considered the factors described in the Revised Policy Statement on Penalty Guidelines, including the fact that Josco cooperated with Enforcement during the investigation. The Commission concludes that the Agreement is a fair and equitable resolution of the matters concerned and is in the public interest, as it reflects the nature and seriousness of the conduct and recognizes the specific considerations stated. The Commission also concludes that Josco’s civil penalty is consistent with the Revised Policy Statement on Penalty Guidelines.
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