By Illinois Radio Network
SPRINGFIELD – The owner of Illinois’ nuclear power plants said it could face criminal charges and other penalties in connection with a federal investigation involving the company’s lobbying practices in Springfield, but Exelon officials said they don’t know how any of those things could play out or what they could mean for the company’s bottom line.
Utilities like Exelon are required to disclose certain issues in an annual report to the U.S. Securities and Exchange Commission. In its 2019 report released earlier this month, the company disclosed that the federal investigation into ComEd, its utility service company, could face challenges.
“The outcome of the U.S. Attorney’s Office and SEC investigations cannot be predicted and could subject Exelon and ComEd to criminal or civil penalties, sanctions or other remedial measures,” the SEC filing said.
The report also warned investors that the appearance of impropriety on ComEd’s behalf “could have an adverse impact on Exelon’s and ComEd’s reputation or relationship with regulatory and legislative authorities, customers and other stakeholders, as well as their consolidated financial statements.”
Any company registered with the SEC is required to disclose any and all risks that could affect performance. Exelon’s Form 10-K has more than 30 risk factors, such as cybersecurity breaches and acts of terrorism.
In the company’s February earnings call, Exelon CEO Christopher Crane didn’t specifically address the new disclosure, but reiterated previous statements about how company officials are cooperating with federal authorities
“We are limited in what we can share about the investigation, however, I want to reiterate that we are fully cooperating with the U.S. District Attorney’s Office and taking the situation very seriously,” Crane said.
In previous calls, Crane criticized reports on the investigation, calling them “speculation.”
Exelon representatives were not available to comment further. The disclosure was first reported by Crain’s Chicago Business.
News of ComEd’s involvement in a federal subpoena broke last October and former ComEd president abruptly resigned.
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