In a bid to reduce the bank's exposure, JP Morgan Chase & Co has sold off owned rights over market electricity from three power plants located in California. This reduces the bank's presence where a current probe is underway on allegations of price manipulation.
In a regulatory filing this week, JP Morgan said that federal energy regulators may take 'enforcement action' against it. The bank has continuously denied allegations of price manipulation in both California and Michigan.
A spokeswoman from JP Morgan declined to comment on the sale of the power marketing rights over Southern California Edison but said that the bank would fight the allegations of price manipulation.
Tolling agreements allow non-energy companies such as JP Morgan to purchase gas and sell the power produced from the fuel from the facilities. The divestment of power marketing rights include tolling agreements for Units 1 to 6 at the Alamitos plant totalling 3,690 megawatts, Units 1 and 2 at Huntington Beach for 430 megawatts and Units 5 to 8 at Redondo Beach at 1,310 megawatts.
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