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* Dan Mihalopoulos at WBEZ…
In his first public comments since Commonwealth Edison admitted a Springfield bribery scheme, CEO Joe Dominguez said Wednesday he was sorry for the power company’s conduct – but quickly added that he did not think the public suffered as a result of the scandal.
“I wanted to apologize on behalf of the entire company,” Dominguez told officials at a meeting of the Illinois Commerce Commission, which regulates ComEd and other public utilities in the state.
Dominguez quickly pivoted from that mea culpa to show the limits of his contrition. He focused largely on defending the company’s overall performance as excellent – and protecting the legislative gains ComEd achieved during the eight-year-long bribery scheme. […]
In an effort to add what he said was “context” for his company’s state regulators, Dominguez told the ICC that the “deferred prosecution agreement,” or DPA, with the U.S. attorney’s office in Chicago “is not a criminal conviction of ComEd” and that “a few orchestrated the improper conduct” but most employees do a superb job.
Dominguez also said the state laws mentioned in the deal with federal law enforcement authorities actually had benefited the people of Illinois, even though lawmakers locked in electricity delivery rate hikes.
* ComEd is borrowing from its parent…
ComEd doesn’t have $200 million in cash flow to pay the fine, Dominguez told commissioners, so it would borrow the money from its parent company, Exelon. […]
“In order to pay the government, Exelon, like other large holding companies, has a cash balance, is able to use some of that cash. It goes down to ComEd so that it meets its obligation under the [deferred prosecution agreement] to make that payment. In the future, when we otherwise would have provided our profits to the shareholder, our profits are actually going to repay that $200 million. At the end of the day, the capital structure remains the same and shareholders, not customers, will pay all of the fine.”
* Iulia Gheorghiu at Utility Dive…
The utility is strengthening its compliance practices outside of the federal investigation, Gomez told Illinois regulators. Cost changes and percentages that will fall on ratepayers for the compliance function are not available, she added.
ICC commissioners insisted that ComEd’s ratepayers should not fund any changes the utility makes in reaction to the deferred prosecution agreement.
* The person leading that particular charge was the embattled ICC Chair…
Commission Chair Carrie Zalewski told Dominguez and Glockner that she wasn’t comfortable “with one penny” of ratepayer money going to an improved compliance system made necessary by actions over nearly a decade at ComEd that resulted in a criminal charge of bribery.
“I find it very hard to believe Exelon was going to enhance their policies regardless,” she said.
* Some legislators and other elected officials may be alarmed about this…
As part of the deal to defer prosecution of bribery charges against the company, ComEd and its parent company Exelon agreed to pay the fine, to cooperate with a continuing federal investigation, to adopt internal policies and controls regarding their dealings with public officials to prevent similar crimes from occurring again and to file reports with the U.S. Attorney’s office at least once every 12 months detailing how it is complying with the terms of the agreement.
“They create, among other things, a detailed tracking system to capture information about our interactions with public officials,” said David Glocker, Exelon’s executive vice president for compliance and audit. “Going forward, beginning when these policies went into effect on July 6, any request, recommendation or referral from a public official has to be reported, has to be tracked, and it can only be acted on with the concurrence of a series of people within the organization, including, importantly, the compliance function.”
Legislators and other electeds routinely forward constituent complaints to utility companies.
*** UPDATE *** From ComEd…
All requests, referrals and recommendations from public officials for things of value for themselves or others will be reported and tracked. The only exceptions are routine requests for constituent assistance or information.
* And, of course…
Here’s an opening sentence one might only get to write in an Illinois newspaper:
Nearly two weeks after admitting to a bombshell bribery charge, ComEd executives outlined their ethics reform plan to a panel of state regulators led by the relative of an alleged player in the criminal plot.
Illinois Commerce Commission Chairwoman Carrie Zalewski, whose agency oversees utility rates and safety practices, opened Wednesday’s meeting with demands for “transparency” and “accountability” in light of federal court records that allege ComEd engaged in a “yearslong bribery scheme” involving jobs, contracts and payments to allies of House Speaker Michael Madigan.
One of the Madigan associates that prosecutors say got such a job? Carrie Zalewski’s father-in-law, former 23rd Ward Ald. Michael Zalewski.
That connection was largely ignored during the hearing, however, even as Zalewski herself called the payments “unethical.”
“I have not done anything wrong,” Carrie Zalewski shot back, and added, “I take umbrage at the assumption.”
Oliva is a Republican appointee of former Gov. Bruce Rauner. Rauner’s ICC chairman, Brien Sheahan, was quickly replaced with Zalewski after Gov. J.B. Pritzker took office. Zalewski since has reversed some of Sheahan’s policies and priorities.
posted by Rich Miller
Thursday, Jul 30, 20 @ 10:17 am
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===…that “a few orchestrated the improper conduct” but most employees do a superb job”…
Has ComEd ever provided the names of those disciplined or otherwise held accountable for this conduct? I know the CEO was allowed to retire, but who else got canned over this debacle? We know the names of the Madigan loyalists rolled up in this, but not the names of any of their dance partners inside ComEd.
How do we know ComEd found everyone?
Comment by 47th Ward Thursday, Jul 30, 20 @ 10:26 am
Lets not enter a new era of McCarthyism.
Comment by Ostomie Wedgie Thursday, Jul 30, 20 @ 10:27 am
===McCarthyism.===
Lol. That’s quite a leap from asking for transparency and accountability from a publicly regulated corporate entity to the HUAC Committee and its Red Scare tactics. But you be you.
Comment by 47th Ward Thursday, Jul 30, 20 @ 10:34 am
Maybe Carrie Zalewski should be able to keep this job but just saying I didn’t do anything wrong ain’t enough.
She needs to show that she had and continues to have safeguards in place to prevent her father in law and husband from communicating with her or influencing her on ICC matters.
Comment by Zach Thursday, Jul 30, 20 @ 10:48 am
==“I take umbrage at the assumption.”==
The old righteous indignation response. Yeah, that’s the ticket. /s
Comment by Streator Curmdgeon Thursday, Jul 30, 20 @ 10:48 am
I wonder what happened to AG Raoul’s petition to the ICC to challenge the sweet deal ComEd got on this power play. “ComEd wants four decades to repay nearly $400 million it owes customers. The debt reflects excess amounts customers paid to cover the Chicago-based utility’s anticipated federal income tax liabilities.”
https://www.chicagobusiness.com/joe-cahill-business/icc-should-pull-plug-comed-power-play
Sure would be nice if ratepayers could see a refund.
Comment by JustaThought Thursday, Jul 30, 20 @ 10:48 am
=but quickly added that he did not think the public suffered as a result of the scandal.=
Right, and if they told you wolverines would make good house pets would you believe them?
The legislation should be rescinded immediately. It was achieved through corrupt actions.
Comment by JS Mill Thursday, Jul 30, 20 @ 10:59 am
I take umbrage at Zalewski’s umbrage. Her failure to even acknowledge how this looks is appalling. She should recuse herself while investigating is in progress.
Comment by Upper Mississippi River Rat Thursday, Jul 30, 20 @ 11:06 am
This corruption occurred to either protect ComEd’s interests or to further enrich them. There’s no other logical explanation. It’s also then inconceivable that the public has not suffered as a result.
If you want to show some good will to the public, as your holding company to kick in the $400M you owe the public for overcharging customers all these years.
Comment by Pundent Thursday, Jul 30, 20 @ 11:16 am
Love it when someone takes umbrage, right out of the Marie Barone playbook in Everybody Loves Raymond.
Comment by Oldtimer Thursday, Jul 30, 20 @ 11:18 am
===The legislation should be rescinded immediately. It was achieved through corrupt actions.===
The net effect would be to begin the decertification of two nuclear power plants with no plan to replace them. The costs to fund the improvements in the smart grid and transmission system would be in jeopardy. One of the major improvements in the system came about because of the smart grid. I dare IEC or CUB to come on here and publicly challenge my assertion. Oh, and all the gains made in renewables and energy efficiency would be lost. ComEd/Excelon should be held to answer these corruption charges but any attempt to repeal the two laws in question is silly and made by people that do not understand the laws and their affect on Illinois.
Comment by Nagidam Thursday, Jul 30, 20 @ 11:22 am
===I dare IEC or CUB to come on here and publicaly challenge my assertion===
Oh boy, where to start with you Nagidam? You know IEC and CUB supported FEJA, right? You know IEC and CUB support smart grid, right?
For what it’s worth, FEJA doesn’t have anything to do with certification of nuclear plants. FEJA created a subsidy for two nuclear plants. The formula rates legislation make the recovery of utility costs risk-free because the ICC can’t disallow unnecessary costs. Finally, the renewable energy and energy efficiency projects that are already operating wouldn’t magically disappear should legislation be repealed. If you installed a new, energy efficient air conditioner in 2017 it won’t vanish in the middle night if the Legislature repeals FEJA. Please try to get at least one sentence correct if you’re going to post something.
Comment by Groundhog Day Thursday, Jul 30, 20 @ 11:44 am
@Groundhog
Yes they supported both pieces of legislation but happen to be the ones attacking ComEd will overlooking their past support. If the subsidies go away the nukes’ begin decertification right or wrong? The costs to upgrade transmission lines in support of the smart grid and enabling technology have been bonded out, right or wrong? Formula rates allowed for the infusion of immediate cash. I certainly can agree that there is some potential issues with formula rates. The energy efficiency and renewable portfolio standard would go back to all the problems it had before and any advancement in solar would be wiped out, right or wrong? Yes any energy efficiency project would stay if completed but future ones would be gone, right or wrong?
Comment by Nagidam Thursday, Jul 30, 20 @ 11:53 am
– I wonder what happened to AG Raoul’s petition to the ICC to challenge the sweet deal ComEd got on this power play. “ComEd wants four decades to repay nearly $400 million it owes customers. The debt reflects excess amounts customers paid to cover the Chicago-based utility’s anticipated federal income tax liabilities.” –
That money is going back to ComEd customers, but not on the accelerated schedule that the AG asked for. ComEd proposed to refund it over 40 years. The AG asked for 5 years. The AG continues to ask the ICC to shorten the timeline of the refund. https://www.icc.illinois.gov/docket/P2020-0393/documents
Comment by Notorious RBG Thursday, Jul 30, 20 @ 12:21 pm
I like JB, but he should have thought about his appointment’s connections to the entities that appear before the ICC; Zalewski & ComEd and Carrigan and labor unions. It doesn’t matter if they are openly biased, State law requires recusal when the commissioner’s “impartiality might reasonably be questioned.”
Comment by Nobody Sent Thursday, Jul 30, 20 @ 12:50 pm
Nagidam, you bring up valid concerns but they are addressable in ways that get Illinois ratepayers away from being reliant on the utility for everything. In other state the energy efficiency and renewable programs are run by non-utility agencies. See here for the basics: https://www.epa.gov/sites/production/files/2015-08/documents/napee_chap6.pdf
It’s important to note that FEJA is not going to be repealed; too much union influence on the Dems who run Illinois. The Legislature should be figuring out how much the refund to ratepayers should be. That shouldn’t be settled with class action lawsuits.
Comment by Groundhog Day Thursday, Jul 30, 20 @ 1:13 pm
@Groudhog Day
Fair enough but my original point stands from the person that said the two bills should be rescinded. As you said, FEJA isn’t going to be repealed. As for refunds, I would agree if the corruption caused rate payers to over pay then the GA should figure it out. I am just skeptical.
Comment by Nagidam Thursday, Jul 30, 20 @ 1:25 pm