Illinois regulators OK $38M in ComEd customer refunds tied to bribery scandal

Commonwealth Edison Co. will return about $38 million to electric customers in Illinois to cover the use of ratepayer funds tied to the utility's role in a high-profile corruption scandal.

The Illinois Commerce Commission, or ICC, on Aug. 17 issued an order (dockets 21-0607, 21-0739) approving ComEd's proposed refund to cover all costs that any party contends were used in connection with allegations detailed in a deferred prosecution agreement with federal authorities.

The ICC's order notes that the Exelon Corp. utility subsidiary "expended ratepayer funds in connection with the conduct detailed in the deferred prosecution agreement" reached in July 2020 with the U.S. Attorney's Office for the Northern District of Illinois. ComEd agreed to pay a $200 million fine as part of the agreement to resolve a federal investigation into a yearslong effort to improperly influence legislation through steering jobs and contracts to associates of a top Illinois lawmaker.

The ICC's "approval of ComEd's voluntary $38 million customer refund resolves any question of whether customer funds were used in connection with the unacceptable conduct detailed in the July 2020 deferred prosecution agreement," ComEd CEO Gil Quiniones said in an Aug. 17 written statement. "The quality and value of ComEd's service to our customers is arguably the best in the nation, but we recognize that delivering excellent performance and value for the dollar is not enough and we are equally dedicated to earning and maintaining our customers' trust."

A massive energy law signed in September 2021 by Illinois Gov. J.B. Pritzker authorized the ICC to investigate whether ComEd used ratepayer funds in connection with its role in the alleged bribery scheme or to pay the $200 million penalty in the deferred prosecution agreement.

The ICC's order states that ComEd did not use ratepayer funds to pay the criminal penalty.

About $31 million of the refund will be paid through a rider to cover ICC jurisdictional costs. ComEd also will refund more than $5 million, plus $2 million in interest, through Federal Energy Regulatory Commission jurisdictional rates, subject to FERC approval.

ComEd also is seeking ICC approval of a $223.2 million increase in electric distribution rates as part of its annual formula rate plan filing.

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