8-KOther EventsExhibits & Filings

EXELON CORP 8-K Report, Corporate Update (Sep 28, 2023)

Filed September 28, 2023For Securities:EXC

Summary

Exelon Corporation and its subsidiary Commonwealth Edison Company have reached a settlement with the Securities and Exchange Commission (SEC), bringing to a close an investigation that began in July 2020. This settlement resolves all outstanding matters related to conduct previously disclosed in a deferred prosecution agreement that Commonwealth Edison successfully exited in July 2023. Under the terms of the settlement, the companies have agreed to pay a civil penalty of $46.2 million. Exelon had already accrued this amount in the second quarter of 2023, meaning it has no unexpected financial impact on current or future reported earnings. The SEC's order acknowledges the companies' full cooperation and the significant enhancements made to their compliance programs.

Key Highlights

  • 1SEC investigation resolved: Exelon and Commonwealth Edison have settled with the SEC, concluding a significant regulatory matter.
  • 2Civil penalty of $46.2 million agreed upon.
  • 3No new financial impact: The settlement amount was already accrued and reflected in Q2 2023 results, meaning no surprise charges.
  • 4Cooperation acknowledged: The SEC order recognized the companies' full cooperation throughout the investigation.
  • 5Compliance enhancements noted: The SEC acknowledged the significant improvements made to Exelon's compliance program.
  • 6Deferred prosecution agreement successfully exited: Commonwealth Edison completed its deferred prosecution agreement in July 2023.

Frequently Asked Questions

The SEC investigation related to conduct previously identified and disclosed in a deferred prosecution agreement that Commonwealth Edison Company entered into in July 2020.

The settlement requires a $46.2 million civil penalty. However, Exelon recorded an accrual for this full amount in the second quarter of 2023. Therefore, this settlement has no unexpected financial impact as it has already been accounted for in the company's reported financial results.

Yes, Commonwealth Edison Company entered into a deferred prosecution agreement in July 2020 related to the conduct that was the subject of the SEC investigation. This agreement was successfully exited in July 2023, and the current settlement resolves the SEC's investigation stemming from those prior issues.

Yes, the SEC's administrative order recognized Exelon's full cooperation during the investigation and the substantial improvements made to the companies' compliance programs.