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FERC Finds DTE Energy Trading Impermissibly Charged Transaction Fee in Contract with Detroit Edison

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October 1, 2010

FERC accepted the findings and recommendations of separate audits of DTE Energy Company and affiliates (Docket PA10-12); EDF Inc. and affiliates including EDF Trading (Docket PA10-11); and EIF Management, LLC and affiliates (PA10-10); relating to the filing of electric quarterly reports (EQR) and market-based rate authority.

In the audit of DTE Energy, FERC found that annual contracts from 2005-2007 for DTE Energy Trading to provide brokering services to its affiliate Detroit Edison included a 10% transaction fee that FERC's Audit Staff alleged violates 18 C.F.R. § 35.39(f)(1)(iii).  Audit Staff's analysis indicated that Detroit Edison paid $16,730 as a result of the 10% corporate adder, and that the total amount billed to Detroit Edison for brokering services was $222,085.

Audit Staff recommended that DTE Energy Trading develop a plan to refund such amounts, and examine similar service contracts to determine if an improper fee was charged.  Staff also recommended measures to reduce errors contained in the DTE EQR reports.  DTE Energy did not contest the findings.

The audits of the EDF companies and EIF Management found that their EQRs contained errors, such as missing or incorrect information, and directed the companies to improve their reporting program and submit corrected reports.

   
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