The Federal Energy Regulatory Commission (FERC) on Wednesday approved a $38 million settlement with Vistra Corp. to close a long-running fight over allegations that its affiliate Dynegy Inc. manipulated a 2015 electricity capacity auction—sending consumers’ bills higher than they should have been.
The settlement ends nearly a decade of litigation that drew in consumer watchdogs, state officials, and federal regulators, all grappling with whether Dynegy’s bidding strategy in the Midcontinent Independent System Operator (MISO) market crossed the line from savvy business into unlawful manipulation.
Dynegy’s Auction Tactics Under Fire
Consumer advocates, including the Illinois Attorney General’s Office and Public Citizen, argued that Dynegy used its market power to warp auction results for the 2015–16 capacity year, leaving electricity customers unfairly overcharged.
Although Dynegy—acquired by Vistra in 2018—has consistently denied wrongdoing, critics claimed the company’s maneuvers distorted the market.
