Contract analysis

I. Background and Procedural Posture On May 22, 2023, the Office of Enforcement ("OE") of the Federal Energy Regulatory Commission ("FERC" or the "Commission") issued a preliminary inquiry letter to Dunmore Energy Holdings Ltd. and Dunmore Power Trading LLC, advising Dunmore that OE staff had identified certain trading patterns in the Midcontinent Independent System Operator ("MISO") energy markets that warranted fur

II. Dunmore's Settlement Proposal After careful consideration of the Preliminary Findings, the factual and economic record, the applicable law, and the discussions held during the December 4 settlement conference, Dunmore respectfully submits the following comprehensive settlement proposal. A. Proposed Civil Penalty Dunmore proposes a civil penalty of $4.0 million, payable in two equal installments, as follows: • Fir

III. Proposed Enhanced Compliance Plan (36-Month Term) As a central element of the proposed settlement, Dunmore proposes a comprehensive Enhanced Compliance Plan (the "ECP") with a thirty-six (36) month term. The ECP is designed to ensure Dunmore's ongoing compliance with Section 222 of the Federal Power Act, 16 U.S.C. § 824v, and the Commission's Anti-Manipulation Rule, 18 C.F.R. § 1c.2, and to demonstrate Dunmore's

IV. Mitigating Factors Supporting the Proposed Resolution The proposed settlement terms are supported by a number of significant mitigating factors, each of which the Commission has recognized as relevant under its Penalty Guidelines and enforcement precedent. Dunmore respectfully submits that these factors, considered individually and cumulatively, warrant a resolution substantially below the monetary sanctions prop

V. Proposed Resolution Framework In summary, Dunmore respectfully proposes the following terms for inclusion in a Stipulation and Consent Agreement: (1) Civil Penalty: $4.0 million, payable in two equal installments of $2.0 million each — the first within thirty (30) days of the Effective Date, and the second within one hundred eighty (180) days of the Effective Date; (2) No Disgorgement: The settlement would not inc

VI. Proposed Next Steps Dunmore respectfully requests that FERC Staff review this proposal and provide a written response or counter-proposal at Staff's earliest convenience. Dunmore understands that FERC Staff will need time to evaluate the terms set forth herein and to consult internally, and Dunmore is prepared to afford Staff reasonable time to do so. Dunmore remains fully willing to participate in further settle

VII. Conclusion and Confidentiality Notice This letter and the settlement proposal set forth herein are submitted in the context of confidential settlement negotiations and are non-public and privileged pursuant to 18 C.F.R. Part 1b. Dunmore respectfully requests that FERC Staff treat this submission and its contents as confidential and not disclose them outside the context of the investigation and settlement negotia