[Bumped up from late Tuesday for visibility and comments opened for discussion.]
* Steve Daniels at Crain’s…
For the first time, Exelon is warning its investors explicitly that it and subsidiary Commonwealth Edison could be subject to criminal or civil penalties in the various federal investigations that have enveloped the energy company.
For months, Exelon has disclosed that it and ComEd received subpoenas from the U.S. Attorney’s Office for Northern Illinois into their lobbying activities and communications with state Sen. Martin Sandoval, D-Cicero, who since has pleaded guilty to taking bribes. But, until now, it said it couldn’t predict any outcome of the probe.
* The new info is contained in Exelon’s SEC report….
The outcome of the U.S. Attorney’s Office and SEC investigations cannot be predicted and could subject Exelon and ComEd to criminal or civil penalties, sanctions or other remedial measures.
Any of the foregoing, as well as the appearance of non-compliance with anti-corruption and anti-bribery laws, could have an adverse impact on Exelon’s and ComEd’s reputation or relationship with regulatory and legislative authorities, customers and other stakeholders, as well as their consolidated financial statements.
“Adverse impact.” Yeah. That’s one way to say it.
But the company doesn’t appear to be too worried about the financial impact…
No loss contingency has been reflected in Exelon’s and ComEd’s consolidated financial statements as this contingency is neither probable nor reasonably estimable at this time. Management is currently unable to estimate a range of reasonably possible loss as these matters are subject to change.
* And then there’s this…
Subsequent to Exelon announcing the receipt of the subpoenas, a putative class action lawsuit has been filed against Exelon and certain officers of Exelon and ComEd alleging misrepresentations or omissions by Exelon purporting to relate to matters that are the subject of the subpoenas and the SEC investigation. Exelon believes that these claims lack merit and intends to defend against them, and though the costs or any loss associated with the lawsuit cannot be reasonably estimated at this time, Exelon does not believe that the lawsuit will have a material adverse impact on Exelon’s or ComEd’s consolidated financial statements.
Click here for more info about that class action lawsuit.