Politics |

An only-in-Illinois story: ComEd bribery scheme hearing is run by daughter-in-law of alleged key player in the case

Here’s an opening sentence one might only get to write in an Illinois newspaper:

Nearly two weeks after admitting to a bombshell bribery charge, ComEd executives outlined their ethics reform plan to a panel of state regulators led by the relative of an alleged player in the criminal plot.

Illinois Commerce Commission Chairwoman Carrie Zalewski, whose agency oversees utility rates and safety practices, opened Wednesday’s meeting with demands for “transparency” and “accountability” in light of federal court records that allege ComEd engaged in a “yearslong bribery scheme” involving jobs, contracts and payments to allies of House Speaker Michael Madigan.

One of the Madigan associates that prosecutors say got such a job? Carrie Zalewski’s father-in-law, former 23rd Ward Ald. Michael Zalewski.

That connection was largely ignored during the hearing, however, even as Zalewski herself called the payments “unethical.”

Of the agency’s five commissioners, only Sadzi Oliva questioned Zalewski’s participation in the hearing. Oliva, a former state prosecutor, said she would feel “complicit” if she sat silent and allowed the proceedings to continue unchallenged.

“As ComEd’s regulator, rate payers are looking to the commission to have effective and transparent oversight over ComEd,” said Oliva, who was appointed by former Republican Gov. Bruce Rauner. “I believe the allegations surrounding the bribery scheme may conflict with Chairman Zalewski’s ability to do her job effectively by adversely affecting the confidence of the public. Holding this hearing, in this manner, is not good for the integrity of the commission while attempting to restore the trust of the rate payers. “

Carrie Zalewski, who is also a lawyer, responded that she took “umbrage” at Oliva’s comments. She did not, however, specifically address her father-in-law’s connection to ComEd or how that relationship could color the public’s perception of the hearing.

“I have not done anything wrong,” Carrie Zalewski said to Oliva. “Your actions to suggest otherwise are disingenuous and irresponsible. I perform my duties ethically, honestly and with integrity.”

Zalweski did not respond to media questions after the meeting, including whether she has been interviewed or subpoenaed by federal authorities. She hurried out a side door, while an ICC employee who would not give her name said Zalewski had said everything she wanted to say during the hearing and would not be making any more statements.

An ICC spokeswoman has said there is no conflict of interest with Zalewski remaining on the state board. Democratic Gov. J.B. Pritzker, who appointed her to the commission last year, has said she has his complete confidence.

Her continued role, however, drew criticism from two public speakers at the hearing, both of whom said there could not be true transparency as long as Zalewski ran the proceedings. The commission billed Wednesday’s hearing as the first of several meetings between ComEd and state regulators to discuss ethics reform.

“Whether Carrie Zalewski has done anything inappropriate or not is not the point,” said attorney Stephan Blandin, who has filed a class-action lawsuit against ComEd to recoup the money gleaned during the scheme. “The point is that there is an appearance of impropriety. Anybody who is going to hold themselves as a duly appointed representative of the public has to understand that, and she clearly doesn’t.”

Jesus Solorio, chairman of the Hispanic GOP organization, also called out the commissioners who did not object to Zalewski’s participation.

“You cannot sit there and pretend that the cloud hanging over this commission’s integrity is not your problem,” said Solorio, who is running against Democratic U.S. Rep. Jesus “Chuy” Garcia in the fall. “Given what is at stake … we deserve more than empty assurances.”

Carrie Zalewski is married to Democratic state Rep. Michael Zalewski of Riverside, who is the former alderman’s son.

Federal prosecutors have said ComEd’s scheme began around 2011 — when key regulatory matters were before the Illinois House that Madigan controls — and continued through last year. They agreed to defer their prosecution of ComEd for three years as long as the company cooperates with the ongoing investigation.

Court documents allege a member of Madigan’s camp and a ComEd executive arranged for a former Chicago alderman, whom the Tribune has identified as Michael Zalewski, to be paid $5,000 a month indirectly as a subcontractor.

Neither the speaker nor any of his associates has been charged with wrongdoing. A spokeswoman has said the speaker “has never made a legislative decision with improper motives and has engaged in no wrongdoing here.”

At one point during Wednesday’s regulatory hearing, Carrie Zalewski asked for ComEd’s assurances that the “unethical” fees paid to the associates were not paid by consumers.

ComEd CEO Joe Dominguez, who has not been implicated in the scheme, told the panel that the money came from shareholder profits and it did not impact electricity rates. He also referred to the money paid to the Madigan allies — without mentioning any of them by name — as “inappropriate.”

In addition to tightening its lobbying practices, ComEd also plans to start a tracking system for legislators’ job requests and inquiries.

Dominguez declined to speak to reporters afterward and did not answer when asked if it was appropriate to have the daughter-in-law of an alleged player in the bribery scheme overseeing the company’s reforms on the state’s behalf.

ComEd spokesman Paul Elsberg later told the Tribune, “That is not a matter for us to consider, nor is it our place to say.”

No relatives of former ComEd officials referenced in the federal charges have been or will be involved in implementing the company’s reforms, Elsberg said.

ComEd has publicly apologized for its actions, but the company denies the scheme meant customers were unfairly charged. To the contrary, the utility spokesman said the company has increased reliability by 70% since 2012 and customers’ bills are lower now than they were nearly a decade ago because of legislation passed by the Illinois General Assembly.

In all, prosecutors put a value of at least $150 million on the legislative benefits ComEd received in light of the scheme. The federal court documents specifically noted the 2011 passage of the Energy Infrastructure and Modernization Act, which “helped improve ComEd’s financial stability” by establishing rate guidelines and a smart grid overhaul.

“Nowhere in the (agreement with prosecutors) is there any allegation or inference that the smart grid law was bad policy or that ComEd’s investments did not produce value to customers,” Dominguez told commissioners.

ComEd has agreed to pay a record $200 million fine and cooperate with the ongoing probe of its lobbying practices in exchange for the charges being dropped at the end of the agreement period. The fine cannot be raised through rate hikes, according to the terms of the agreement.

The Tribune previously reported that FBI agents raided the home of ex-Ald. Zalewski — who resigned from the council May 31, 2018 — as part of that investigation.

Public records indicate that Zalewski, who was making more than $114,000 a year as an alderman and had been a Springfield lobbyist for at least two decades, has been having money problems. The IRS filed two liens totaling $185,634 against Zalewski for unpaid taxes in the past two years, records show. The most recent, filed in March 2019, was for $99,770. The IRS in November 2018 filed a lien for $85,864.

Zalewski’s retirement from the City Council was effective May 31, 2018. Federal prosecutors allege there was a request to put him on ComEd’s payroll around the same time.

Chicago Tribune’s Hal Dardick contributed.