ComEd boss gets a big raise – Utilities News

on May12

11 May 2017 | 6:23 pm

Commonwealth Edison CEO Anne Pramaggiore got a 22 percent raise last year.

Pramaggiore received $2.7 million, mainly in the form of cash and stock of ComEd parent Exelon—by far the most she’s been paid since her promotion to CEO five years ago.

That compared with $2.3 million in 2015. The compensation details were contained in an April 28 Securities & Exchange Commission filing.

Her substantial increase was noteworthy in light of the modest pay cut for Exelon CEO Chris Crane in 2016. The company reacted to shareholder unhappiness over executive compensation last year, reflected in an overwhelmingly negative advisory vote on Exelon’s 2015 pay packages.

Crane’s compensation was trimmed 5 percent in 2016 in what was assuredly his best as CEO of Exelon since taking the top job in 2012.

In 2016, Pramaggiore was paid salary, bonus and cash incentive rewards of nearly $1.3 million and stock awards also of $1.3 million. The remainder of her pay took the form of change in pension value and perks.

The compensation committee of ComEd’s board highlighted operational improvements at the utility that keeps the lights on in northern Illinois.

Also, ComEd lobbyists played a crucial role in winning passage last year of the Future Energy Jobs Act, which for the first time allows ComEd to profit on its administration of energy efficiency programs.

The law also authorizes statewide ratepayer subsidies of up to $235 million annually to keep two of Exelon’s nuclear plants open and allow them to earn a profit. Getting Republicans and Democrats in Springfield to agree was remarkable in light of the pitched battle for more than two years between Gov. Bruce Rauner and the Democratic-led Legislature.

ComEd gradually has become a more important contributor to Exelon’s earnings as profitability at its industry-leading nuclear fleet has eroded due to low wholesale power prices.

Last year, ComEd accounted for 21 percent of Exelon’s adjusted operating earnings. In 2017, Exelon forecasts ComEd’s earnings will increase about 14 percent, and it will contribute about 24 percent to Exelon’s overall profits.

Much of the increase for ComEd is due to annual rate hikes per another Illinois law the utility lobbied for. The so-called smart grid law, enacted over then-Gov. Pat Quinn’s veto in 2011, authorized a $2.6 billion, 10-year grid modernization program, paid for via rates set each year by a formula that largely removed Illinois regulators’ discretion.



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