Dive Summary:

• The Federal Energy Regulatory Commission (FERC) is no doubt flexing its new authority over banks granted by Congress after the 2001 Enron scandal.
• J.P. Morgan Chase is in settlement discussions with FERC over the bank’s alleged manipulation of electricity markets in California and the Midwest, according to people familiar with the talks. The bank might have to pay a record fine of $ 1 billion, which is double the penalty FERC dealt the Barclays PLC bank earlier this week in a case involving similar accusations.
• In 2011, the California Independent System Operator, overseeing the trade and price-setting of wholesale electricity, said it witnessed J.P. Morgan's bidding strategies that extracted excessive profits from the market. J.P. Morgan commodities chief Blythe Masters says the bank did nothing wrong. In the meantime, the bank has added $600 million to its litigation reserve in the second quarter.

From the article:
“Following Enron's collapse, FERC received authority from Congress to levy fines of up to $1 million per violation per day, up from $10,000 per violation. It has assessed $291 million in penalties since 2007 in 78 separate enforcement actions.”