The Corner

More Crony Capitalism in Energy Policy

Today’s NYT reports that Illinois-based Exelon benefits has close ties to the Obama Administration — both David Axelrod and Rahm Emanuel worked for the energy company — and (surprise, surprise) Exelon has benefited from Administration decisions.

 

With energy an increasingly pivotal issue for the Obama White House, a review of Exelon’s relationship with the administration shows how familiarity has helped foster access at the upper reaches of government and how, in some cases, the outcome has been favorable for Exelon.

White House records show that Exelon executives were able to secure an unusually large number of meetings with top administration officials at key moments in the consideration of environmental regulations that have been drafted in a way that hurt Exelon’s competitors, but curb the high cost of compliance for Exelon and its industry allies.

In addition, Exelon, which provides power to more than 6.6 million customers in at least 16 states and the District of Columbia, was chosen as one of only six electric utilities nationwide for the maximum $200 million stimulus grant from the Energy Department. And when the Treasury Department granted loans for renewable energy projects, Exelon landed a commitment for up to $646 million allowing it, on extremely generous financial terms, to finance one of the world’s largest photovoltaic solar projects.

Jonathan H. Adler is the Johan Verheij Memorial Professor of Law and the director of the Coleman P. Burke Center for Environmental Law at the Case Western Reserve University School of Law.
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