The Federal Energy Regulatory Commission approved today a $410 million settlement from JPMorgan Chase's (NYSE:JPM) Ventures Energy subsidiary related to allegations of market manipulation in electricity markets.

The settlement consists of $285 million in penalties and $125 million in "unjust profits," pulled primarily from California electricity users between September 2010 and November 2012. The penalties will go to the U.S. Treasury, while $124 million in profits will head back to California ratepayers, with the final $1 million going to manipulated Midwest electricity users.

In a J.P. Morgan statement, the company notes:

J.P. Morgan Ventures Energy agreed to pay, without admitting or denying any violations, disgorgement, penalties, and interest totaling $410 million. J.P. Morgan Ventures Energy is pleased to have reached an agreement with FERC to put this matter behind it.

Although the case excludes culpability, the company did agree to waive claims for additional payments using the strategies under investigation, and also agreed to conduct a third-party assessment of its power business policies and practices.

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