[ by Howard Haykin ] JPMorgan, alleged to have manipulated the energy markets, was ordered by a federal judge to explain why it is not releasing internal email to the Federal Energy Regulatory Commission, or FERC, as part of the government's probe into alleged market manipulation.  The FERC oversees the electricity markets. FERC investigators have sought the documents since mid-April and court has accommodated their requests by issuing subpoenas to JPMorgan on 4/18 and 5/3.  But JPMorgan has released some emails but redacted others, claiming attorney-client privilege.  The FERC says the privilege doesn't apply because the 25 redacted emails are discussions between JPMorgan bankers, not attorneys. The case focuses on the JPMorgan business unit that operates power plants and bids into competitive markets to provide power in California and several Midwestern states. FERC currently is attempting to investigate whether the bank engaged in "abusive" bidding techniques that enabled it to receive "at least $73 million in improper payments", according to a Monday court filing by the FERC, which cites findings by electricity system operators.  Regulators believe that JPMorgan was exploiting an unintended flaw in market rules to receive excessive payouts, according to regulatory documents. The FERC also said it's also investigating whether the bank misled regulators or made false statements. The court ordered JPMorgan to respond by 7/13 - next week. For further details, go to:  [MarketWatch, 7/5/12].