Today's column is about the ~$80 million default by Power Edge, an affiliate of Tower Research Capital, a New York hedge fund. The losses will be spread among Baltimore Gas & Electric and other member of PJM Interconnection, the Mid-Atlantic electricity grid, driving up costs for customers.

The column recounts how PJM and big electricity users urged the Federal Energy Regulatory Commission to require Power Edge and similar entities to post adequate collateral to avoid just such an outcome. Here is FERC's order on Oct. 26 denying the full protection PJM sought. Here is PJM's Dec. 26 announcement of the default. Merry Christmas.