On April 25, FERC issued an order approving a settlement between FERC’s Office of Enforcement Staff and PSEG Energy Resources & Trade, LLC (PSEG). The settlement resolves FERC Enforcement’s investigation into whether PSEG violated Sections 1.2 and 6.4.2(a)(ii) of Schedule 1 of the PJM Operating Agreement and Attachment K-Appendix of the PJM Open Access Transmission Tariff by submitting incorrect cost-based bids into the PJM energy market from 2005 through 2014, as well as FERC’s market behavior rule on communications (18 C.F.R. § 35.41(b)) by making false and misleading statements to PJM regarding the costs associated with certain units for which PSEG submitted cost-based bids into the PJM energy market. According to the settlement, FERC Enforcement initiated a non-public preliminary investigation following PSEG’s self-reports of inaccuracies in its cost-based offers for some of its fossil units related to the inclusion of incorrect environmental adders going back to 2005. Under the settlement, PSEG admits to the facts set forth in the settlement agreement, but neither admits nor denies the violations. PSEG agreed to pay a civil penalty of $8,000,000, to pay PJM disgorgement of $26,905,736, plus $4,494,264 interest, and to submit annual compliance reports.