(Bloomberg) -- The head of Exelon Corp.'s utility unit has abruptly retired amid a federal probe involving its lobbying in Illinois.
Anne Pramaggiore, senior executive vice president and chief executive officer of Exelon Utilities, is leaving “effective immediately,” the company said in a statement Tuesday. Calvin Butler Jr., chief of Exelon's Baltimore Gas and Electric utility, was named as her interim replacement.
Pramaggiore's departure comes less than a week after Exelon disclosed in a regulatory filing that it received a subpoena from federal prosecutors asking for information related to communications with Illinois State Senator Martin Sandoval. In July, Exelon disclosed it received a subpoena related to its lobbying activities in Illinois.
Exelon fell as much as 2.3% Wednesday.
Pramaggiore's sudden exit following the subpoenas “cannot be interpreted in any other way as being directly related to each other,” Greg Gordon, an analyst at Evercore ISI, said in a research note. It increases the risk that the company could be under scrutiny for criminal behavior, he said.
“The situation looks unpalatable in the short term but a lot of risk looks priced in,” Gordon said.
The Chicago Tribune reported earlier this month that federal agents had raided Sandoval's office and were searching for information related to concrete and construction businesses and lobbyists and public officials. Officials were also looking for “items related to any official action taken in exchange for a benefit,” the Tribune reported, citing documents released by the Illinois Senate.
Exelon's statement on Pramaggiore's retirement Tuesday didn't reference the subpoenas. Nor did it give a reason for her departure.
“We thank Anne for her valuable service,” Exelon CEO Chris Crane said in the statement. “We are confident this will be a smooth transition.”
--With assistance from Will Wade.
To contact the reporter on this story: Joe Ryan in New York at jryan173@bloomberg.net
To contact the editors responsible for this story: Lynn Doan at ldoan6@bloomberg.net, Joe Ryan, Joe Carroll
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