Oh, the irony
Wednesday, Jul 29, 2020 - Posted by Rich Miller
* On the surface, this looks not good at all…
A commissioner at the state agency that oversees Commonwealth Edison has called on the head of the Illinois Commerce Commission to recuse herself from a public meeting with executives from the corrupt power company, according to an internal ICC letter obtained Tuesday by WBEZ.
ComEd executives are scheduled to appear at the ICC meeting Wednesday to answer questions about the utility giant’s admission that it had engaged in a long-running bribery scheme in Springfield.
One of the five ICC commissioners, Sadzi Martha Oliva, wrote that she was “deeply troubled” to see the commission’s chairwoman, Carrie Zalewski, was planning to participate in the meeting on ComEd’s “ethics reforms” despite her father-in-law’s involvement in the corruption scandal. […]
Four days after Oliva’s letter, top ICC lawyer Philip Kosanovich replied that he disagreed with her.
“I have reviewed the statutes and rules language you cited,” Kosanovich wrote. “I am aware of no facts that would require Chairman Zalewski’s recusal from the July 29, 2020 proceedings involving Commonwealth Edison Company.”
Scratch the surface, though, and you’ll see that Commissioner Oliva is by most accounts a pretty reliable supporter of ComEd at the ICC.
* For instance…
The Illinois Commerce Commission has agreed to settle a lawsuit, filed by Illinois PIRG Education Fund and GlidePath, that alleged it deliberately excluded select consumer advocates and industry experts from participating in its NextGrid Study process, while allowing ComEd and Ameren to fund, shape, and approve a report designed to influence Illinois energy policy.
The final NextGrid report, which has been blocked from publication by a court injunction for more than a year, must now include the following disclaimer stating that the study was funded by ComEd and Ameren and should not be used to influence policy or regulation:
“This Report is not a consensus document and it is not intended to advise or guide legislators, regulators, or other policy makers, or to otherwise be used as a basis for legislation, regulation, policy, or ratemaking. This Report was funded by Commonwealth Edison and Ameren at a cost to the ratepayers of Illinois. The contract executed as part of the process states that the report is to be compiled for the ICC, under the direction of Commonwealth Edison and Ameren, and requires prior review by Commonwealth Edison and Ameren to be deemed complete.”
In June 2018, Illinois PIRG Education Fund, an independent consumer advocate, and GlidePath, a leading independent developer and owner of advanced energy and energy storage systems, sued the ICC and its former Chairman Brien Sheahan for violating the Illinois Open Meetings Act after they were excluded from NextGrid working groups. In that litigation, the ICC admitted that NextGrid meetings did not comply with the Open Meetings Act and agreed in a court order to comply with the Open Meetings Act thereafter.
The ICC claimed the NextGrid Study was an open and transparent process and issued a public call for interested parties to become members of NextGrid working groups. But through depositions and filings, the lawsuit revealed that the ICC, ComEd, and Ameren worked together with former Chairman Sheahan and handpicked individuals to determine which companies and individuals would be allowed to participate in the working groups and which would be blocked from doing so.
Witnesses testified that ComEd objected to GlidePath’s participation in the study before GlidePath was blocked from participating. Testimony also recounted how Chairman Sheahan decided to remove a member from a NextGrid working group and directed a staff member to disconnect the phone line of another participant during a working group meeting.
“The documents in this case show a state regulator working to benefit the very utilities it should be regulating by cherry-picking utility-friendly participants and excluding those that would challenge the utilities’ control,” said Dan Foley, founder of GlidePath. “It’s unfortunate that it took a lawsuit to bring these facts to light, but we hope this settlement will help reduce the undue influence utilities have held over our regulators for far too long.”
“When utilities are allowed to shape energy policy and regulation, the public suffers,” said Abe Scarr, executive director of Illinois PIRG. “We’re proud to have made this step toward increased transparency and public participation in Illinois’ energy system.”
Oliva was at the ICC when that all went down and backed the study and the way it was all constructed to apparently favor the utilities.
* The contractor released the report anyway, which prompted Chair Zalewski and three other ICC members to release a statement condemning the report…
We recently became aware of the release of University of Illinois’ Next Grid Report (“Report”), and the dissemination of the Report by a former Commissioner of the Illinois Commerce Commission (“Commission”). Considering the potential for confusion, it is incumbent upon us to clarify the Report’s implications for Illinois and the nation. Simply put, this Report is not suited for any regulatory, legislative, or policy pursuit within Illinois or any other jurisdiction.
Oliva was the only commissioner who did not sign the statement.
Everything I’ve been told about Zalewski is that she’s been a competent and fair chair. So, it would be about the most Illinois thing ever if an ICC Chair like that was forced off the commission over an issue with her father-in-law.
* And if you’re still interested in this topic, click here and read Illinois PIRG State Director Abe Scarr’s written testimony to the ICC today. There are some sound recommendations at that link.
- Donnie Elgin - Wednesday, Jul 29, 20 @ 11:03 am:
It is not what you know, but who you know.
- Precinct Captain - Wednesday, Jul 29, 20 @ 11:08 am:
Strange that an investigative reporter like Dan Mihalopoulos can’t even scratch the surface. And strange that most of his virulent attacks are always against women.
- phocion - Wednesday, Jul 29, 20 @ 11:12 am:
The Chair is intelligent, thoughtful, and competent. Her husband is smart and enjoys bipartisan respect. You can’t choose your relatives.
- 47th Ward - Wednesday, Jul 29, 20 @ 11:14 am:
If we want to stick it to ComEd for their corrupt practices over the years, let’s appoint Pat Quinn to the ICC.
- Rich Miller - Wednesday, Jul 29, 20 @ 11:18 am:
===let’s appoint Pat Quinn to the ICC===
Probably couldn’t survive a Senate confirmation process. lol
- Chicagonk - Wednesday, Jul 29, 20 @ 11:22 am:
@Phocion - There are plenty of intelligent and competent people in Illinois that don’t have the appearance of impropriety. You can’t choose your relatives, but you don’t have to always follow them into the family business.
- Donnie Elgin - Wednesday, Jul 29, 20 @ 11:29 am:
“You can’t choose your relatives”
Your right you can’t. But it doesn’t mean that you ignore them either. The Senior Zalewski’s legal/money problems would perhaps make a “reasonable person” wonder about his daughter-in-law’s credibility as Chairman of the Illinois Commerce Commission. His house was raided by the FBI and he has money troubles.
“Public records indicate Zalewski, who was making more than $114,000 a year as an alderman, has been having money problems recently. The IRS filed two liens totaling $185,634 against Zalewski for unpaid taxes in the past two years, records show. The most recent, filed in March, was for $99,770. The IRS last November filed a lien for $85,864″
https://www.pjstar.com/news/20190718/fbi-raids-downstate-home-of-longtime-confidant-of-speaker-madigan
- Back to the Future - Wednesday, Jul 29, 20 @ 11:32 am:
Read the WBEZ story and thought it was well done. I also read the written testimony that was included today.
I don’t think the article was an attack on anyone and just discussed the idea put forth by another commissioner that the the Chairperson should recuse herself at this time.
Certainly if the Chairperson did recuse herself that should not be taken in any shape or form as some kind of admission of prejudice or fault.
Sometimes it is the best thing for all parties to take a break from certain hearings.
- Anon y mouse - Wednesday, Jul 29, 20 @ 11:34 am:
Anyone else appointed to Chair of ICC on the recommendation of Madigan, who also happens to be married to a state rep. whose father was a putative ComEd lobbyist … and also extremely close to Madigan?
- Rich Miller - Wednesday, Jul 29, 20 @ 11:37 am:
===Anyone else appointed to===
Aside from process and marital ties, what exactly has she done on the ICC that is objectionable? I’m not defending her, it’s an honest question. Does she vote the wrong way? I haven’t heard consumer groups complaining about her.
- AD - Wednesday, Jul 29, 20 @ 11:39 am:
I get that Zalewski can be fair, but it just doesn’t look good. If Trump replace Robert Mueller with Jared Kushner, the investigation would obviously be considered tainted and you’re going to have people here saying the same thing.
- Rich Miller - Wednesday, Jul 29, 20 @ 11:49 am:
===but it just doesn’t look good===
I get that, too. But subjectivity is rarely a sound gauge.
===replace Robert Mueller with Jared Kushner===
Kushner isn’t even a lawyer, so maybe up your game a bit.
- Altgelds Ghost - Wednesday, Jul 29, 20 @ 11:49 am:
Rich,
It is not about a specific action Chairwoman Zalewski took or did not take.
This is about the appearance of impropriety from the Chair of the Board the regulates utilities.
The Chair was recommended for the job by the Speaker, who is the target of a federal investigation because the largest utility company in the state agreed to pay a $200million fine for bribing said, Speaker.
This is about the Chairwoman’s husband spending over $75,000 in legal fees with a white-collar defense firm after his very real conflicts with gaming were reported by the media.
This is about the Chairwoman’s father-in-law being identified in ComEd’s agreement as receiving a questionable sub-contract from ComEd and the speaker being allowed to tell the father-in-law that he got the contract.
This is about having an ethical standard and holding people accountable even if the action is within the letter of the law. These jobs are privileges, not rights.
Just ask John Sullivan how ethics are used by the Governor when he wants to use them.
The Zalewski’s are old-school political types. Everyone in the family gets a pension.
It’s 2020. Illinois deserves better.
- Lucky Pierre - Wednesday, Jul 29, 20 @ 11:51 am:
JB says the government has reformed itself there is no political hiring in state government.
https://cookcountyrecord.com/stories/543184591-pritzker-says-federal-court-appointed-hiring-monitor-no-longer-needed-state-government-has-reformed-itself
The Shakman decrees were a series of Federal court orders regarding government employment in Chicago, which were issued in 1972, 1979, and 1983, in response to a lawsuit filed by civic reformer Michael Shakman. The decrees barred the practice of political patronage, under which government jobs are given to supporters of a politician or party, and government employees may be fired for not supporting a favored candidate or party.[1][2][3]
https://en.wikipedia.org/wiki/Shakman_Decrees
- Cheryl44 - Wednesday, Jul 29, 20 @ 11:51 am:
The difference is Kushner is no qualified to do, well, anything.
- Nagidam - Wednesday, Jul 29, 20 @ 11:54 am:
===The Chair is intelligent, thoughtful, and competent. Her husband is smart and enjoys bipartisan respect. You can’t choose your relatives.===
I concur with this analysis. But…they are discussion a company that entered an agreement for wrong doing. Part of the wrong doing involves a direct relative. She absolutely should recuse herself. A recusal has no bearing on her abilities or whether the relative is guilty. It tells the public and rate payers that this is a serious issue that needs to be investigated and She doesn’t want to be a distraction to finding out the truth.
- Back to the Future - Wednesday, Jul 29, 20 @ 12:00 pm:
I haven’t read anything about anybody recommending she be removed from the Commerce Commission. It seems this is about stepping out of a hearing. Happens to Circuit Court Judges at times and sometimes it is just a matter of perception rather than conflict.
The Commissioner raising the issue did nothing wrong in raising the issue and she is an Attorney with experience in government. The Commerce Commission General Counsel gave an opinion that no conflict exists so I suppose it is up to the Chairperson to participate in this hearing or recuse herself.
Really not a healthy or fair approach to be attacking people for their relatives or who appointed them.
- Back to the Future - Wednesday, Jul 29, 20 @ 12:04 pm:
Good point by Cheryl44
- Groundhog Day - Wednesday, Jul 29, 20 @ 12:50 pm:
For what it’s worth, the hearing just ended. Every Commissioner OTHER than the one who sent the letter asked hard questions of ComEd. ComEd did a “ComEd special” and directed the conversation into the weeds around obscure rule compliance. Good to see some things never change.
- Eloy - Wednesday, Jul 29, 20 @ 1:12 pm:
Man, the aggrieved Raunerites #onhere like Altgeld who make everything about pensions is starting to be a parody. Focus your efforts on writing more op Ed’s in the trib on how the answer to our prayers is an illegal change to benefits. That trains never late.
- Notorious RBG - Wednesday, Jul 29, 20 @ 1:19 pm:
Chairman Z is well-qualified, especially compared to her predecessor. She asked hard questions of ComEd, including following up on a tough question presented by Cmmr Bocanegra that was not answered directly.
ComEd did what every other utility does when their leadership is dragged before the ICC for misconduct: talk about all the “good thing they do in their monopolistic service provision. We get it guys. You kept the lights on during the pandemic and you have a better distribution system than you did in 2011. Well done. Now, can we see a forensic accounting showing how much money you made off of EIMA and FEJA?
- Rock You Like Herman Cain - Wednesday, Jul 29, 20 @ 1:27 pm:
During last week’s national conference, Commissioner Oliva spoke about “utility innovation” resulting from “recent legislation”.
Someone should ask her what “recent legislation” she referred to.
- Last Bull Moose - Wednesday, Jul 29, 20 @ 1:28 pm:
What a mess.
Fining Com Ed is insufficient. People need to go to jail.
I would have an entirely new set of commissioners. The current lot would be given immunity from prosecution on Com Ed related matters in exchange for their testimony. If any are innocent, that should become clear.
Years ago I worked at a company with executives who had seen their bosses go to jail for price fixing. The people I knew did not even go close to the line. There is a deterrent effect. I saw it.
- Back to the Future - Wednesday, Jul 29, 20 @ 2:30 pm:
Appreciate that some “tough” questions were asked at the Commission hearing. Respectfully if the ComEd witnesses did not include witnesses that the commission could subpoena that would be responding claiming 5th Amendment rights against self incrimination then the whole process including the questions was not “tough” enough.
Really tired of the Springfield two step.
- PolishPrince - Wednesday, Jul 29, 20 @ 2:32 pm:
Interestingly, the Illinois law that defines “conflict of interest” includes situations where someone did not do anything wrong, but who creates an appearance of impropriety. So even if the chairman did nothing wrong, it’s pretty hard to argue there is no appearance of impropriety when her father in law got her the job, and was found to be involved in the scandal. It just looks awful. This isn’t a situation where some family member was involved in bad conduct that was totally separate from the situation. For example, if it was alleged he stole from a law firm or took bribes for a company that isn’t regulated by the commission.
- just saying - Wednesday, Jul 29, 20 @ 3:28 pm:
Didn’t the past chairman and former dupage county board member in his past life work for COMED?
- Nobody Sent - Wednesday, Jul 29, 20 @ 4:24 pm:
Under the Public Utilities Act, there doesn’t need to be a showing of bias or bad behavior before a commissioner must recuse himself/herself. See section 2-108(b): A Commissioner must disqualify himself or herself in a proceeding in which his or her impartiality might reasonably be questioned…
Of course that didn’t stop Carrigan from refusing to recuse himself when asked to do so because of his ties to labor unions in a case where labor unions were parties.
- Aceite - Wednesday, Jul 29, 20 @ 5:13 pm:
Funny how Oliva is attacked, but there’s no mention here of Z Jr.’s big legal bills since the feds went to see his dad.