Capitol Fax.com - Your Illinois News Radar » For first time, Exelon warns investors it could be hit with criminal or civil penalties, waves off class action suit
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
For first time, Exelon warns investors it could be hit with criminal or civil penalties, waves off class action suit

Thursday, Feb 13, 2020

[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.

- Posted by Rich Miller        

7 Comments »
  1. - Oswego Willy - Thursday, Feb 13, 20 @ 10:45 am:

    === various federal investigations===

    For me, this is the largest of the takeaways.

    How all this will play out, connecting “to what”, part “of which”…

    The rest is seemingly known (to us here and following it outside the corporate impact of stockholders and business) but this nugget is the tastiest;

    === 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.===

    “In the end, the books look good, no financial hit, just ride out the fallout… ‘subject to change’… “

    They’re a corporation, if it still can make money off… whatever… then it’s a cost of doing business in the short term… namely its reputation takes a hit, but the cash flow is still solid.

    Whew.

    Cold. Cold but accurate by them.


  2. - Candesent - Thursday, Feb 13, 20 @ 10:48 am:

    I wish ComEd would give us some free lightbulbs.


  3. - Silly Dilly Nilly - Thursday, Feb 13, 20 @ 11:27 am:

    Im so titillated and stimulated by the revelation that there are multiple federal investigations. My dreams are coming true. In the words of the great Chris Matthews I feel a tingle of my leg.


  4. - Loop Lady - Thursday, Feb 13, 20 @ 11:35 am:

    Silly: ooh I think this feeling is contagious…I would love to hear
    what Frank Clark has to say about this investigation…maybe in time he will be “encouraged” to tell all…


  5. - Huh? - Thursday, Feb 13, 20 @ 12:55 pm:

    Throw in an idea for Chicago to go into the electricity distribution business and the ComEd monopoly starts to look a bit ragged.


  6. - Last Bull Moose - Thursday, Feb 13, 20 @ 12:58 pm:

    Jail the offenders. That will change behavior. Corporate fines have little effect.

    Years ago I joined a company where 20 years earlier executives had gone to jail for price fixing. The people I worked with were still extremely careful about anything that could be construed as improper communication with a competitor. When you see your boss go to jail, the lesson hits home.


  7. - Ben Tre - Thursday, Feb 13, 20 @ 3:25 pm:

    Real question is whether they write down the value of Mike Madigan on their balance sheet. :)


TrackBack URI

This is not Facebook, so uncivil comments, profanity of any kind, rumors and anonymous commenters will not be tolerated and will likely result in banishment.



* Lightfoot nails it
* Question of the day
* Illinois Kidney Care Alliance Is Serving Illinois’ 30,000+ Patients With Kidney Disease
* You Think Commuting Rod's Sentence Is Bad?
* Select budget address react
* Budget address open thread
* Stop the presses! Rod wants a banana split
* SUBSCRIBERS ONLY - Budget preview
* *** UPDATED x1 *** DCFS refuses to stop shackling children
* Quick budget preview
* Raoul responds to Tillman's appeal of bond case
* It's just a bill
* Rod Blagojevich open thread
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** LIVE COVERAGE ***
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller