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Ratepayers, taxpayers picking up some big legal tabs

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Illinois

Commonwealth Edison ratepayers are helping to cover the cost of the utility’s $140 million settlement of lawsuits stemming from the death of one cable TV worker and the permanent injury of another due to a faulty power pole in downstate Sterling. […]

Additionally, it’s possible more as-yet unquantified settlement costs may be recovered based on reconciliations that took place last year, the ICC says. […]

The treatment of legal costs is in line with the virtually risk-free environment in which ComEd operates, thanks to a series of changes in law over the past 15 years. The company bears no risk from customers who can’t pay, for example. When past-due accounts are written off and the amounts are above what the utility budgets for in its base rates, ComEd collects the remainder in a surcharge.

That’s thanks to a 2009 law. Before that, utility shareholders had to cover those costs.

* Crain’s…

Why has Chicago paid out more than $250 million in just three years for legal settlements involving alleged misconduct by Chicago Police officers?

A prime reason, other than the misconduct itself, is that city officials have failed to follow, analyze and learn from the misconduct, leaving the door open to further abuse and claims, according to an eyebrow-raising report from Chicago Inspector General Deborah Witzburg.

“The City lacks a comprehensive approach to the collection of litigation data,” Witzburg said in a statement about the review, which covered 2017-2020. “It is therefore critically impaired in its ability to effectively manage the risk of expense to the City and harm to its residents arising out of CPD’s operations,” she added.

“Given the pressing need to reform CPD’s practices—and the extraordinary number of dollars involved—the City should take every opportunity to learn lessons from those instances in which the conduct of CPD and its members gives rise to costly legal claims.”

The report is here…

$83 million a year could pay for a lot of stuff. Just sayin…

posted by Rich Miller
Friday, Sep 30, 22 @ 11:46 am

Comments

With respect to the CPD, aren’t these payouts paid by the Department’s insurers? The taxpayers are paying for increased premiums and rates, but the total payouts are covered by insurance companies, right?

Comment by rtov Friday, Sep 30, 22 @ 11:51 am
===covered by insurance companies===

City is self insured.

Comment by Rich Miller Friday, Sep 30, 22 @ 11:53 am
Well there you have it.

Comment by rtov Friday, Sep 30, 22 @ 11:54 am
====$83 million a year====
Basically twice what the mayor was proposing to raise property taxes by until she wised up and dropped that idea. At least until after the election. So like you said, it could pay for a lot.

Comment by Been There Friday, Sep 30, 22 @ 12:00 pm
If the city wasn’t self insured, it’s unlikely that a department like CPD would even be able to find an insurance company willing to take on the department. The Washington Post recently covered a growing trend in small cities of departments being forced into reforms that keep the public and police safer by insurers, or risk losing coverage.

Comment by Google Is Your Friend Friday, Sep 30, 22 @ 12:14 pm
===unlikely that a department like CPD would even be able to find an insurance company ===

Truth.

Comment by Rich Miller Friday, Sep 30, 22 @ 12:16 pm
There may only be a small percentage of bad police, but there are a lot more who are content to look the other way. And we go on and on.
Now anyone who asks any questions about policing is looking to Defund the Police and is anti-police.

Comment by James the Intolerant Friday, Sep 30, 22 @ 12:21 pm
ComEd has paid a lot of lobbyists to get their shareholders off the hook financially.

Comment by Because I said so.... Friday, Sep 30, 22 @ 12:28 pm
The City is also at fault for making payouts when they should have fought the case out in court; they settled far too often.

Comment by thisjustinagain Friday, Sep 30, 22 @ 12:33 pm
It must be great to be a utility in IL - captive customers, guaranteed revenue, no risk to shareholders. The weird thing is that in every rate case the utilities always argue for a higher return on equity because their business is “so risky.” It seems the only real risk is that the Feds will get wise to their shenanigans and corruption. But even if that happens, the utility can be assured that the ICC will minimize any State penalty. Like I said, it must be great to be a utility in IL!

Comment by Nobody Sent Friday, Sep 30, 22 @ 12:47 pm
==The City is also at fault for making payouts when they should have fought the case out in court; they settled far too often.==

Please cite your sources.

Comment by Pot calling kettle Friday, Sep 30, 22 @ 12:53 pm
Stories like these are the reason why my answer to “What kind of law do you practice?” is “The wrong kind.”

– MrJM

Comment by MisterJayEm Friday, Sep 30, 22 @ 12:58 pm
History tells you ComEd got out of cut offs due to members requests

Comment by ANNON'IN Friday, Sep 30, 22 @ 1:00 pm
Lightfoot created a Chief Risk Officer for The city when she was elected, and risk management was supposed to be her Chief of Staff’s top priority.

They all failed.

Here’s an idea: put $100 million into the CPD budget for bonuses for officers. Tell them all CPD legal expenses and settlements will be paid out of that fund, and the officers will split what’s left at the end.

Comment by Thomas Paine Friday, Sep 30, 22 @ 1:05 pm
As a former FOIA officer, the million+ in FOIA fees is particularly galling.

Comment by Homebody Friday, Sep 30, 22 @ 1:23 pm
“The company bears no risk from customers who can’t pay, for example. When past-due accounts are written off and the amounts are above what the utility budgets for in its base rates, ComEd collects the remainder in a surcharge.
That’s thanks to a 2009 law. Before that, utility shareholders had to cover those costs.”

Ghosts of MJM’s insider deals with ComEd will haunt IL for decades.

Comment by Donnie Elgin Friday, Sep 30, 22 @ 1:23 pm
re the City paying out when it could have won in court, I don’t doubt this. I have had the experience of working for government, being sued for something I did not do, and the government settling at a small amount to make it go away. that said, there might be an easy way to find the number of cases where fault is not admitted but a payment comes out. also the cases where someone stays on the job. those stats would be telling.

Comment by Amalia Friday, Sep 30, 22 @ 2:26 pm
CPD (and the citizens of Chicago) suffers from a lack of quality training and a lack of effective supervision.

It is evident in most of the questionable use of force videos I see.

Comment by Occasionally Moderated Friday, Sep 30, 22 @ 2:45 pm