President Barack Obama used the power of regulation and stimulus to aid an early political supporter, according to the New York Times.
Illinois energy giant Exelon has enjoyed boom times since Obama took office, with the company’s executives visiting the White House on numerous occasions and lobbying for regulation to hurt its competition. The strategy has paid dividends: the company received maximum stimulus grants and breaks from regulation that drove up the costs for other energy companies. Reports the Times:
Exelon’s top executives were early and frequent supporters of Mr. Obama as he rose from the Illinois State Senate to the White House. John W. Rogers Jr., a friend of the president’s and one of his top fund-raisers, is an Exelon board member. David Axelrod, Mr. Obama’s longtime political strategist, once worked as an Exelon consultant, and Rahm Emanuel, the Chicago mayor and Mr. Obama’s former chief of staff, helped create the company through a corporate merger in 2000 while working as an investment banker. …
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.
Published under: Cronyism , Exelon , Obama Administration , Regulation , Stimulus