ComEd is privileged to serve more than 9 million people in northern Illinois, and we work every day to ensure we are providing reliable, affordable, clean and sustainable energy to the customers and communities we serve. We are equally committed to meeting the highest standards for integrity, ethics and compliance.
In July 2020, ComEd entered into a Deferred Prosecution Agreement (DPA), which resolved the U.S. Department of Justice's investigation into ComEd and its parent company Exelon. The companies took many steps aimed at preventing the prior conduct described in the DPA from happening again, such as increasing oversight, implementing new policies, and increasing guidance and employee training.
Through our words and actions, we are working every day to continue to earn the trust of our customers, communities and employees and to set an example as a leader in corporate ethics.
What is the DPA?
ComEd entered into a Deferred Prosecution Agreement (DPA) in July 2020, which resolved the U.S. Department of Justice's investigation into the company. With the DPA, ComEd acknowledged that some of its past lobbying practices and interactions with public officials were unacceptable and inconsistent with our standards for integrity and ethical behavior. The DPA also requires ComEd to adhere to specific ethics, compliance, and accountability standards.
Do individuals involved in the DPA still work at the company?
The small number of senior ComEd employees and outside contractors found to have orchestrated the past conduct no longer work for the company. The DPA does not allege misconduct by any Exelon employees.
What did ComEd and Exelon do in response?
ComEd has acknowledged its responsibility and has cooperated fully with the government's investigation. In compliance with the DPA, the company paid a $200 million penalty to the U.S. Treasury, using shareholder dollars, not customer dollars.
Exelon created the new position of Executive Vice President of Compliance & Audit, reporting directly to the CEO, to oversee the company's compliance and functions, and appointed an experienced and independent leader from outside the company to the role.
ComEd is committed to continuing to meet all DPA requirements, with an ongoing focus on ethics and compliance in every aspect of our work, as we continue to deliver industry-leading service to our customers and communities reliably and at a low cost.
What steps has the company taken to prevent it from happening again?
The company has taken robust action, including putting in place strong new policies, enhancing oversight, and implementing more rigorous employee training aimed at preventing the prior conduct from happening again.
Did ComEd customers pay for any costs associated with the conduct related to the DPA?
No. The penalty paid to the U.S. Treasury was funded by shareholder dollars, not customer dollars. Further, to resolve any question of whether customer funds we used in connection with the conduct in the DPA. ComEd proposed a $38 million voluntary refund to customers, which Illinois regulators approved. After accounting for the refund ComEd voluntarily proposed, regulators confirmed, customers will not have paid in rates for any of the costs found to be in connection with the conduct described in the DPA.
When does the DPA conclude?
The three-year term of the DPA is scheduled to end in July 2023, and if the company is found to have complied, the case against ComEd will be dropped. However, ComEd will continue to build on new policies and procedures put in place to ensure employees adhere to the highest ethical standards and meet or exceed compliance requirements.
