Cleary Gottlieb won approval from the Federal Energy Regulatory Commission (FERC) for JPMorgan Chase Bank to trade electricity. JP Morgan Chase Bank received authority from FERC to engage in wholesale trades of power at market-based rates.
FERC is the commission that regulates wholesale transaction of power in the U.S. In the emerging electricity markets, power trading is no longer exclusively the domain of traditional utilities. Increasingly, financial institutions and other market participants unaffiliated with traditional utilities are engaging in power trades. FERC approval must be obtained for an organization to function as a power marketer. Cleary Gottlieb has obtained similar regulatory approval for Bank of America (the first U.S.-based bank to receive such approval), Barclays Bank, and an affiliate of Credit Suisse First Boston.