8-KMaterial AgreementsOther EventsExhibits & Filings

EXELON CORP 8-K Report, Material Agreement (Jul 17, 2020)

Filed July 17, 2020For Securities:EXC

Summary

This 8-K filing from Exelon Corporation and Commonwealth Edison Company (ComEd) on July 17, 2020, primarily details ComEd's entry into a Deferred Prosecution Agreement (DPA) with the U.S. Attorney's Office for the Northern District of Illinois. The DPA resolves an investigation into ComEd's lobbying activities in Illinois, specifically related to allegations of improperly offering jobs and subcontracts to benefit the Speaker of the Illinois House of Representatives and associates to influence legislation. As part of the agreement, ComEd will pay a $200 million penalty, payable in two installments within 30 and 90 days. This payment is stated to not be recoverable in rates or charged to customers. ComEd must also cooperate with ongoing government investigations and implement remedial compliance measures. If ComEd adheres to the DPA's terms for three years, the charges will be dismissed. Notably, Exelon Corporation itself has not been charged in this matter, and the U.S. Attorney's investigation into Exelon has concluded without charges. However, the SEC's separate investigation into lobbying activities remains ongoing, and both Exelon and ComEd are cooperating.

Key Highlights

  • 1Commonwealth Edison Company (ComEd) entered into a Deferred Prosecution Agreement (DPA) with the U.S. Attorney's Office (USAO) for the Northern District of Illinois.
  • 2The DPA resolves an investigation into allegations that ComEd improperly offered jobs and subcontracts to influence the Speaker of the Illinois House of Representatives.
  • 3ComEd agreed to pay a $200 million penalty to the U.S. Treasury, with $100 million due within 30 days and another $100 million within 90 days of the DPA filing.
  • 4The settlement amount reflects credits for ComEd's remediation and cooperation efforts and will not be recovered in customer rates.
  • 5If ComEd complies with the DPA's terms for three years, the USAO will dismiss the charge.
  • 6Exelon Corporation is not a party to the DPA and faces no charges from the USAO regarding this investigation.
  • 7The Securities and Exchange Commission (SEC) investigation into lobbying activities is ongoing, and both Exelon and ComEd are cooperating.

Frequently Asked Questions