CHICAGO—Documents uncovered by Illinois Attorney General Lisa Madigan documenting ex parte meetings between Exelon and the Federal Energy Regulatory Commission (FERC) are further evidence that Chicago-based Exelon's proposed takeover of New Jersey's PSEG is bad for ratepayers.
"The Enron-style tactics by Exelon demonstrate that the interests of the public have been ignored by federal regulators," said Brian Imus, Consumer Advocate for Illinois PIRG. "This new information should put the proposed takeover, already in jeopardy, further into question by the New Jersey Board of Public Utilities."
Exelon's proposed takeover of PSEG—the last state-based utility in New Jersey—would create the largest utility company in the nation. If the deal is approved, Exelon would be an energy giant big enough to put a stranglehold on electricity generation and rates in New Jersey. Exelon's massive market power in the regional energy market will set a harmful precedent for the entire country.
As documented by Attorney General Madigan in a filing earlier this week, the Federal Energy Regulatory Commission (FERC) denied allegations that FERC commissioners and staff had engaged in illegal ex parte contacts with Exelon and PSEG regarding the merger.
However, on January 19, 2006 the FOIA (Freedom of Information Act) request filed by Attorney General Madigan showed that Exelon and PSEG representatives met with FERC commissioners and senior staff on several occasions to discuss their application for merger approval.
Section 557(d)(1)(E) of the Administrative Procedure Act prohibits this type of ex parte communication.
"It is clear that this takeover is being derailed on several fronts, and that is a win for consumers. As Illinois moves forward with a new scheme to set electricity rates, the Attorney General's filing demonstrates that ratepayers should keep a close eye on Exelon/ComEd." Imus said.
