FERC v. POWHATAN ENERGY FUND, LLC

No. 18-2326.

949 F.3d 891 (2020)

FEDERAL ENERGY REGULATORY COMMISSION, Petitioner-Appellee, v. POWHATAN ENERGY FUND, LLC; Houlian "Alan" Chen; Heep Fund, Inc.; CU Fund, Inc., Respondents-Appellants. Edison Electric Institute; Electric Power Supply Association; Energy Trading Institute, Amici Supporting Appellants.

United States Court of Appeals, Fourth Circuit.

Decided: February 11, 2020.


Attorney(s) appearing for the Case

ARGUED: John N. Estes III , SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP, Washington, D.C., for Appellants. Anand Ram Viswanathan , FEDERAL ENERGY REGULATORY COMMISSION, Washington, D.C., for Appellee. ON BRIEF: Patrick R. Hanes , Jonathan T. Lucier , WILLIAMS MULLEN , Richmond, Virginia, for Appellant Powhatan Energy Fund, LLC. Donna M. Byrne, SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP, Washington, D.C.; Abbe David Howell, WINSTON & STRAWN LLP, Washington, D.C., for Appellants Houlian Chen, HEEP Fund Inc., and CU Fund Inc. Larry R. Parkinson, Director, Office of Enforcement, Geo. F. Hobday, Jr., Director, Courtney Spivey Urschel, Deputy Director, Division of Investigations, David Morenoff, Deputy General Counsel, Robert H. Solomon, Solicitor, Samuel G. Backfield, Lisa L. Owings, Mark E. Nagle, Daniel T. Lloyd, Elizabeth K. Canizares, FEDERAL ENERGY REGULATORY COMMISSION, Washington, D.C., for Appellee. Emily Fisher , EDISON ELECTRIC INSTITUTE, Washington, D.C., for Amicus Edison Electric Institute. Christopher McEachran , Raleigh, North Carolina, Matthew A. Fitzgerald , Richmond, Virginia, Todd Mullins , Noel Symons , MCGUIREWOODS LLP, Washington, D.C., for Amici Edison Electric Institute, Electric Power Supply Association, and Energy Trading Institute.

Affirmed and remanded by published opinion. Judge Wilkinson wrote the opinion, in which Judge Keenan and Judge Diaz joined.


The Federal Power Act (FPA) prohibits manipulation of the nation's interstate energy markets and authorizes the Federal Energy Regulatory Commission (FERC) to enforce this prohibition through civil penalties. Appellants in this case are financial trading entities and an individual trader alleged to have unlawfully manipulated...

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