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* Steve Daniels at Crain’s Chicago Business…
Insurers of Exelon and its subsidiary, Commonwealth Edison, so far have agreed to pay $213 million to settle shareholder lawsuits stemming from the ComEd bribery scandal.
No surprise then that premiums are soaring for policies insuring Exelon and ComEd’s directors and officers for liability stemming from the decisions they make or actions they fail to take that harm the company.
ComEd is asking ratepayers to bear at least some of those higher insurance costs in the $1.5 billion, four-year delivery rate hike the utility is seeking, a ComEd spokeswoman confirms. But she won’t say how much, and filings with the Illinois Commerce Commission don’t disclose the figure. […]
The ICC filings do lay out, however, how much more Exelon must pay now to shield directors and officers from liability — hardly a surprise given the hundreds of millions in settlements the insurers have agreed to absorb. The company expects to pay $9.6 million this year, $10.4 million in 2024, $11 million in 2025, $11.5 million in 2026 and $12.1 million in 2027. […]
Not only are insurers covering all of Exelon’s shareholder-lawsuit settlement costs so far, but the company is set to gain financially from the agreements. Exelon stands to reap $30 million from the proposed settlement of several lawsuits brought by shareholders on the company’s behalf against a large group of current and past directors and officers.
Unreal.
posted by Rich Miller
Thursday, Jun 29, 23 @ 8:58 am
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Absolutely not one penny. In fact the rate hike should be denied completely. Exelon and their shareholders should be expected to shoulder all of these costs. That is how it works in the private sector. Or so I am told.
Comment by JS Mill Thursday, Jun 29, 23 @ 9:03 am
People always seem surprised that customers or taxpayers end up footing the bill for the behavior of bad actors, whether a private company or a municipal police department. Like… where do people think those entities get the money from in the first place?
Comment by Homebody Thursday, Jun 29, 23 @ 9:06 am
ComEd and the Bears seem to be working from the same playbook/s.
Comment by Langhorne Thursday, Jun 29, 23 @ 9:10 am
This type of grift usually works in Illinois
Is it different this time?
Comment by halving_fun Thursday, Jun 29, 23 @ 9:17 am
===where do people think those entities get the money from in the first place? ===
There’s ratepayer money and then there’s investor money. It’s like comparing operations spending to capital spending. Two different piles.
Comment by Rich Miller Thursday, Jun 29, 23 @ 9:26 am
It was the shareholders that elected the directors who hired the officers. I mean, if we’re talking responsibility/fault/liability.
Comment by MikeMacD Thursday, Jun 29, 23 @ 9:27 am
=There’s ratepayer money and then there’s investor money.=
And investors should bear the brunt of this. They made the conscious decision to invest in the company and support its leadership. The ratepayers did not.
Comment by Pundent Thursday, Jun 29, 23 @ 9:40 am
ComEd should sue its ex-employees who were convicted. These were highly-paid executives and likely have substantial assets.
Comment by Big Dipper Thursday, Jun 29, 23 @ 9:41 am
===There’s ratepayer money and then there’s investor money. It’s like comparing operations spending to capital spending. Two different piles.===
It can’t be said better, crisper, or more direct to the subject at hand.
The reality is where a corporation is not asking its investors to eat the financial challenges brought on by bad choices, but this corporation has decided that their customers should be punished.
How they “say” this with a straight face is beyond the pale.
Comment by Oswego Willy Thursday, Jun 29, 23 @ 9:47 am
It will be a test of democratic principles if these miscreants are allowed to bill the public for their actions rather than having their investors eat the cost.
At some point someone needs to say enough is enough.
Comment by Friendly Bob Adams Thursday, Jun 29, 23 @ 9:56 am
I’d want a reeeeeeeeeeally close look at the books before agreeing. They need to take a hit on their profit margins for this or else it’s not a punishment. As long as they don’t go out of business, I don’t mind them taking a haircut for several years as compensation for their illegal, price gouging activity.
Comment by Perrid Thursday, Jun 29, 23 @ 9:59 am
Not one penny from ratepayers. Com Ed’s expenses and profits have increased because of fraudulent leadership. Com Ed reaped millions from ratepayers because they successfully bribed key legislators. Their investors and management can eat the increased insurance costs…forever.
Comment by froganon Thursday, Jun 29, 23 @ 10:12 am
Greed in the energy industry abounds. And what are we doing about it? Passing policies that force the prices even higher. This is beyond the pale but it is an overall major issue for regular working people and middle class families. Electricity isn’t affordable and we did it to ourselves.
Comment by Trap Thursday, Jun 29, 23 @ 10:28 am
Like others have said, the shareholders elected these bad actors…not the ratepayers. They need to take the hit or sue Pramaggiore and the others.
Comment by Jocko Thursday, Jun 29, 23 @ 10:32 am
== There’s ratepayer money and then there’s investor money ==
Money is fungible …
Comment by RNUG Thursday, Jun 29, 23 @ 10:35 am
===Money is fungible …===
With respect, are the rates?
Comment by Oswego Willy Thursday, Jun 29, 23 @ 10:38 am
I’ve had the unfortunate (and involuntary) experience of being a ComEd ratepayer this past year. If the rest of the company is as poor as their customer service department, they don’t deserve or need a penny of rate hike. Just streamline the business and they can find the money they want.
Comment by RNUG Thursday, Jun 29, 23 @ 10:38 am
“Money is fungible”
So are lies.
Comment by Flyin'Elvis'-Utah Chapter Thursday, Jun 29, 23 @ 10:40 am
Heads I win. Tails you lose.
Privatizing profits and socializing losses.
So…..what else is new?
Comment by TinyDancer(FKASue) Thursday, Jun 29, 23 @ 11:18 am
Thanks mike madigan
Comment by Jilted Thursday, Jun 29, 23 @ 11:34 am
Even though I own shares of Excelon I firmly believe ComEx is insane to try to recoup one cent of its litigation costs from rate payers. Either reduce executive pay - Board fees and or the dividend but don’t even try to raise rates to pay for corporate malfeasance
Comment by Sue Thursday, Jun 29, 23 @ 12:02 pm
“”Privatizing profits and socializing losses.”"
Modern “venture capital” in a nutshell.
Comment by walker Thursday, Jun 29, 23 @ 12:52 pm
Madigan should be glad he is old. The former Speaker of the Ohio House of Reps was sentenced today to TWENTY years in a case very similar to Madigan’s
Comment by Sue Thursday, Jun 29, 23 @ 3:00 pm
You conveniently left out that he was the Republican Speaker of the Ohio House.
Comment by Big Dipper Thursday, Jun 29, 23 @ 5:28 pm
“he was the Republican Speaker of the Ohio House”
Is there a Democratic Speaker of the Ohio House?
Comment by jj Thursday, Jun 29, 23 @ 5:37 pm
JJ, JB is a Democratic Governor but that does not suggest there is a Republican one.
Comment by Big Dipper Thursday, Jun 29, 23 @ 5:50 pm