The political muscle of ComEd/Exelon aced its last major test in 2016, when the energy companies finally passed what one Illinois House member referred to at the time as a “multibillion-dollar corporate bailout” by electricity ratepayers to keep two of its nuclear power plants open.
The vote came after that year’s election during the fall veto session, and it passed despite the fact that the Democratic-controlled General Assembly and Republican Gov. Bruce Rauner had not agreed on a state budget for nearly a year and a half. It was one of only a tiny handful of bipartisan bills signed into law during Rauner’s term.
ComEd has had its shares of ups and downs in Springfield. It thrived under Gov. Jim Thompson, who strongly supported its push to build a large nuclear fleet. But most subsequent governors took a more populist position. And by the early 2000s, legislators felt ignored and even disrespected by the company.
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That all eventually turned around as ComEd started catering to legislators in order to improve its Statehouse standing. The company stopped trying to ram through previously unseen legislation at the last possible minute in 2011, but had earlier made it much easier for members to do things like call in to check on constituent power outages, for instance. But, more importantly, jobs, contracts and other favors, like keeping constituents’ electricity service on when they couldn’t afford to pay, soon proliferated.
Like many large bureaucracies, once the corporate giant finally changed course it kept following that new route and continued expanding and “perfecting” its mission long after it should’ve moderated itself. It appears that it may have gotten sloppy, or much worse.
The company had been gearing up earlier this year to pass another major bill, which included locking in its favorable rate system for another decade. But then all the energy bills were suddenly set aside until the fall veto session.
The federal investigation of the company has since killed its bill for the immediately foreseeable future. The probe began in earnest in May with search warrants served on Statehouse insider and House Speaker Michael Madigan confidante Mike McClain (a former ComEd lobbyist who played an instrumental role in the company’s many Springfield successes); and former Ald. Mike Zalewski over what the Chicago Tribune claimed at the time was a probe into how the former Chicago alderman with close political ties to Madigan received a ComEd contract.
ComEd and Exelon have since revealed that they’ve been subpoenaed twice by a federal grand jury, once over its “lobbying activities” and then for its “communications” with individuals including Sen. Martin Sandoval (D-Chicago). The search warrant of Sandoval’s Statehouse office listed four unnamed Exelon officials.
The probe hasn’t just toppled the company’s legislative agenda. Fidel Marquez, the company’s senior vice president of governmental and external affairs, and the CEO of Exelon Utilities Anne Pramaggiore, who had been ComEd’s president and then CEO during its successful legislative run, have both suddenly retired.
Pramaggiore was widely credited in 2011 for finally changing Speaker Madigan from an avowed opponent to an ally, partly by revamping the company’s lobbying strategies. In reality, she didn’t act alone. Pramaggiore worked very closely with McClain, who was ComEd’s top contract lobbyist, and John Hooker, who worked his way up the corporate ladder from the mailroom to become a company vice president and its chief in-house lobbyist and then became a contract lobbyist.
The thinking among some had been that federal investigators, who are in possession of all the company’s lobbying-related communications, were likely building a much bigger case than just hiring Sen. Sandoval’s daughter or handing former Ald. Zalewski a contract. The case could involve literally hundreds of favors over the years which combine to possibly form a pattern of corruption.
And then WBEZ reported that federal authorities are actually looking into whether ComEd hired “multiple politically connected employees and consultants in exchange for favorable government actions, including electricity rate increases.” Many did “little or no work” and some had ties to Speaker Madigan, according to the story authored by Dan Mihalopoulos, Dave McKinney and Tony Arnold.
The story also reported that as of October 18, Hooker is no longer working as a ComEd registered lobbyist through Mike Kasper, a major Statehouse lobbyist who also does a lot of legal work for Speaker Madigan.
But beyond whatever ComEd and Exelon may have done, what will be truly fascinating is if the feds ever publish a list of politicians who allegedly got sweet favors in return for their votes. That could be a long one.
- Pick a Name - Monday, Oct 21, 19 @ 9:11 am:
And we wonder why the state of Illinois is in financial shambles.
- Oswego Willy - Monday, Oct 21, 19 @ 9:11 am:
Great read. This issue is far bigger, and this investigation is far more complicated… that 280 twitter characters.
Once again Dave McKinney and Co continues to be the important force in reporting, and why I know I come to Capitol Fax, we’re getting such a much larger scope and political perspective then the limited words McKinney and Co can put in their pieces.
I went back, for me, to see my thoughts, and how this has been progressing. It was interesting. I can do that, we can do that because having a “blog of record” allows us all to view things like this with a greater historical perspective.
=== - Oswego Willy - Wednesday, Jul 24, 19 @ 11:34 am
…
While the questioning of Quinn, individually, to all this is relevant, looking outside-in, without knowing significant pieces, the payments, the checks, the amounts, and the connection to one company, a large utility, for someone doing… nothing…
“who benefits?”
If the speculation is ComEd/Exelon is owed… or if the case that is another side to be made, MJM is owed…
… who benefits from what we already know… cause all that we don’t know is pretty darn significant to the question
“who benefits?”===
So, checking out City Club, Madigan, and who knows what else… who benefited, including a CEO and the company’s desired legislative outcome?
We’ll see
- Steve - Monday, Oct 21, 19 @ 9:12 am:
If the Republican party of Illinois can’t make this a campaign issue then they don’t deserve to win elections in Illinois.
- Oswego Willy - Monday, Oct 21, 19 @ 9:12 am:
=== And we wonder why the state of Illinois is in financial shambles.===
How so? Explain.
- Oswego Willy - Monday, Oct 21, 19 @ 9:15 am:
=== If the Republican party of Illinois can’t make this a campaign issue then they don’t deserve to win elections in Illinois.===
Without Donald Trump on the ballot, you have a point.
Donald Trump defuses a great deal. Your continued ignoring of that is folly.
- Roman - Monday, Oct 21, 19 @ 9:19 am:
In a world where Shakman and Rutan are actually being enforced (which they largely have been since Robert Sorich’s trial and conviction,) it’s a lot harder for state legislators to put friends and supporters on a government payroll.
Perhaps Exelon/ComEd saw that trend developing and decided it would be politically advantageous to fill the patronage vacuum?
- Steve - Monday, Oct 21, 19 @ 9:22 am:
OW
Trump’s name isn’t on the ballot for statewide offices. Neither is Mike Madigan’s.
- Oswego Willy - Monday, Oct 21, 19 @ 9:23 am:
=== Trump’s name isn’t on the ballot for statewide offices.==
Please, go to your 10 am class, or soak your head
Trump is on the ballot… statewide.
- DuPage - Monday, Oct 21, 19 @ 9:30 am:
Might be a good idea for the legislators to allow that Rock Island Clean Line to be built. Comed was strongly opposed to it, they don’t like competition. The lawmakers could specify it route along I-88 into the 6-county Chicago area. Large amounts of lower cost wind power are being stopped at the Illinois-Iowa border. Who in Illinois benefited from this?
- Steve - Monday, Oct 21, 19 @ 9:31 am:
OW
As you know in our federal system, Donald Trump isn’t running for an Illinois office. Just like Mike Madigan isn’t running for statewide office. In this uncompetitive Presidential state, some people might split their vote because it doesn’t matter at the Presidential level the Democrat is going to win no matter who’s on the ballot against Trump. Even Comrade Sanders could win in Illinois.
- @misterjayem - Monday, Oct 21, 19 @ 9:32 am:
’tis the season for ghost payrolling.
– MrJM
- Not a Billionaire - Monday, Oct 21, 19 @ 9:32 am:
That big Com Ed bill was signed by a Republican.Excelon is talking to save it’s life. I bet there is more than a list of favor recipients……
- SpfdNewb - Monday, Oct 21, 19 @ 9:32 am:
Steve, here’s actual political science on presidential coattail effects on state legislators. http://www.acsu.buffalo.edu/~jcampbel/documents/JCAPSR1986StLegisSurge.pdf. Please read this before continuing jumping off a cliff like the rest of the lemmings who listen to AM talk radio.
- Oswego Willy - Monday, Oct 21, 19 @ 9:32 am:
- Steve -
Good luck. You’ve learned nothing from 2014, 2016, 2018.
Make sure your Madigan movie is better than IPI’s.
I’m done. Good luck.
- Rich Miller - Monday, Oct 21, 19 @ 9:33 am:
===Perhaps Exelon/ComEd saw that trend developing===
ComEd has been doing that for decades. The company really ramped up when Harold Washington was mayor and white aldermen/committeemen weren’t getting any patronage from the 5th Floor.
- Grandson of Man - Monday, Oct 21, 19 @ 9:41 am:
Republicans and Rauner pushed the corruption angle and where did it get them? It seems like a cover-up for bad policies that Illinoisans don’t want, or even having to come up with a platform and running on it. It seems to be easy gratification and an excuse not have to run on unpopular right wing policies.
Presidents are always on the ballot, why would anyone think they’re not? Obama influenced midterms, as did Trump. Trump is openly corrupt. Chicago Democrats of old would have been proud.
- BR91 - Monday, Oct 21, 19 @ 9:42 am:
@rich
You said it all there. Anyone who thinks otherwise clearly doesn’t know the game, how it changes, but in the end it stays the same, except for who is writing the paychecks. And it’s actually easier to do in the “private” sector because they don’t have that Shakman thingee.
- Steve - Monday, Oct 21, 19 @ 9:43 am:
OW
I’m not in the movie business. Mike Madigan’s career will end (like all politicians) by 1) He chooses to retire or 2)the ballot box or 3)the jury box.
- @misterjayem - Monday, Oct 21, 19 @ 9:45 am:
“As you know in our federal system, Donald Trump isn’t running for an Illinois office. Just like Mike Madigan isn’t running for statewide office.”
In 2020, Donald Trump’s name will appear on every Illinois ballot; Michael Madigan’s will not.
Failure to recognize such fundamental distinctions is a halmark of substandard thinking.
– MrJM
- Oswego Willy - Monday, Oct 21, 19 @ 9:48 am:
=== Mike Madigan’s career will end … by===
4) Feet first.
MJM, by his own career, is not like a normal politician.
I’ll let -@misterjayem - end my “discussion” with you;
=== Failure to recognize such fundamental distinctions is a halmark of substandard thinking.===
Please be better. Good luck.
- Rabid - Monday, Oct 21, 19 @ 9:49 am:
Excelon / ComEd are the bad actors, What did rauner get?
- Steve - Monday, Oct 21, 19 @ 10:01 am:
OW
I didn’t mention the pine box because I assume Mike Madigan is better shape than many Generation Z members and could do his job for another 30 years.
- Senator Clay Davis - Monday, Oct 21, 19 @ 10:41 am:
Where is CUB in all this? Have they even made a public statement about these allegations since it all began months ago? Their silence is deafening IMO.
Utility political activity is at the heart of rate hikes that CUB was established to prevent. They’re one of the best-funded ratepayer advocates in the country, they should be using this opportunity to call for stronger ethics laws to rein in utility political spending.
- That's it - Monday, Oct 21, 19 @ 11:10 am:
Oswego Willy needs to take a nap. It’s Monday AM and he’s mud slinging all over the place.
Go take all your knowledge and have a nice cup of you know what. Period.
- Oswego Willy - Monday, Oct 21, 19 @ 11:12 am:
- That’s it -
I’m sure that felt good, but this isn’t Facebook.
You wasted all those words *not* to make a point.
Have a nice day.
- Flapdoodle - Monday, Oct 21, 19 @ 11:13 am:
For your edification on why Trump’s presence on the 2020 ballot may well affect outcomes in state legislative elections, and what those effects may be, let me suggest:
Rogers, S. (2016). National forces in state legislative elections. Annals of the American Academy of Political and Social Science, 667 (September), 207-225.
From the abstract: “While voters elect and hold the president responsible for one job and state legislators for another, the outcomes of their elections are remarkably related. In analyses of elite and voter behavior in state legislative elections, I show that legislators affiliated with the president’s party—especially during unpopular presidencies—are the most likely to be challenged, and compared with individual assessments of the state legislature, changes in presidential approval have at least three times the impact on voters’ decision-making in state legislative elections. Thus, while state legislatures wield considerable policymaking power, legislators’ electoral fates appear to be largely out of their control.”
- Flapdoodle - Monday, Oct 21, 19 @ 11:17 am:
My 11:13 comment was directed at Steve, which I failed to indicate. My apologies.
- Blue Dog Dem - Monday, Oct 21, 19 @ 11:20 am:
BTW. I think Trump on the ballot may help. This economy is rolling.
- That's it - Monday, Oct 21, 19 @ 11:20 am:
I said Period.
Hows that for a point?
- Oswego Willy - Monday, Oct 21, 19 @ 11:21 am:
=== nice cup of you know what.===
Yuengling can be consumed in a cup, sure, but a bottle, glass or can is my preferred consumption tool.
To the Post,
=== Pramaggiore was widely credited in 2011 for finally changing Speaker Madigan from an avowed opponent to an ally, partly by revamping the company’s lobbying strategies. In reality, she didn’t act alone. Pramaggiore worked very closely with McClain, who was ComEd’s top contract lobbyist, and John Hooker, who worked his way up the corporate ladder from the mailroom to become a company vice president and its chief in-house lobbyist and then became a contract lobbyist.
The thinking among some had been that federal investigators, who are in possession of all the company’s lobbying-related communications, were likely building a much bigger case than just hiring Sen. Sandoval’s daughter or handing former Ald. Zalewski a contract. The case could involve literally hundreds of favors over the years which combine to possibly form a pattern of corruption.===
Is this investigation more about how lobbying is done in Springfield and far less than maybe the Genesis which is Quinn, his checks, and the divorce?
This seemingly might be about process, and how that is measured in legality?
- Oswego Willy - Monday, Oct 21, 19 @ 11:23 am:
=== Hows that for a point?===
No TV or clouds to yell at today?
I mean, it’s windy AND cloudy.
:)
- Jocko - Monday, Oct 21, 19 @ 12:19 pm:
==BTW. I think Trump on the ballot may help.==
Mick Mulvaney, is that you? I seem to recall BDD saying he had a friend who was wealthy.
- Oswego Willy - Monday, Oct 21, 19 @ 12:26 pm:
=== I think Trump on the ballot may help.===
In Illinois? Trump lost Illinois by 16 points, Trump’s midterm list two Trumpkin suburban seats in the midterm.
I fed you. That’s it.
- Anon - Monday, Oct 21, 19 @ 1:33 pm:
For the comments about CUB, both CUB and the AG’s office have fought — and lost — repeatedly before the ICC. At CUB, at least, I believe there is a hesitancy to fight the utilities because CUB expects to lose.
- Blue Dog Dem - Monday, Oct 21, 19 @ 1:35 pm:
Anon..the Cubs always lose….
- D train - Monday, Oct 21, 19 @ 1:37 pm:
Is there another Chicago utility that is headed by a former MJM staffer and that has close ties to
Quincy mike?
- Oswego Willy - Monday, Oct 21, 19 @ 1:38 pm:
=== the Cubs always lose….===
2016
- Blue Dog Dem - Monday, Oct 21, 19 @ 1:44 pm:
…just couldnt pass it up OW. The old CapFax has been full of such depressing corruption news of late i tried to lighten it up a bit.
- Oswego Willy - Monday, Oct 21, 19 @ 1:47 pm:
- Blue Dog Dem -
I grant ya, the 2019 ball club was depressing too, lol.
Let’s hope the rest of the week is better news?
Be well.
- Kauaijim - Monday, Oct 21, 19 @ 2:02 pm:
Wow , I’m shocked that corruption could leak to the private sector monopoly that wants to keep its monopoly. But does it really matter in a one party state that is deep in following talent
- Oswego Willy - Monday, Oct 21, 19 @ 2:06 pm:
=== one party state===
… and yet for 26 years we had Republican governors, and up to January 2019 Illinois had a Republican governor again.
It felt good typing, I know, but at least say “combine”, lol
- DD - Monday, Oct 21, 19 @ 2:34 pm:
“They’re one of the best-funded ratepayer advocates in the country, they should be using this opportunity to call for stronger ethics laws to rein in utility political spending.”
Good luck with that. CUB is deeply in bed with ComEd and has been for years.
- Grandson of Man - Monday, Oct 21, 19 @ 3:56 pm:
Today Trump mocked the Emoluments Clause. He apparently thinks it’s no big deal if presidents use the office to personally profit (others have done it). This and the impeachment inquiry is in the backdrop of whatever happens in Illinois.
- Muddy Boots - Monday, Oct 21, 19 @ 4:14 pm:
“They’re one of the best-funded ratepayer advocates in the country, they should be using this opportunity to call for stronger ethics laws to rein in utility political spending.”
Yeah…. CUB’s been gone since Kolata took over. It’s bad.
- Nobody Sent - Monday, Oct 21, 19 @ 4:25 pm:
Yes - CUB has hitched its wagon to ComEd - I don’t expect to see CUB weigh in on this one despite the easy pickings