Exelon/ComEd independence

Exelon Corporation independent directors also sit on ComEd’s board as independent directors. ComEd recently made a major announcement that they have an established a new independent board of directors. The Nov 28, 2005 press release also notes that four out of the five independent ComEd directors also sit on the Board of Exelon as independent directors. The press release identifies Sue Ling Gin, Edgar Jannotta, John Rogers, and Richard Thomas as independent on both boards. Exelon trades on NYSE symbol EXC. How can you be independent on both boards when one is the parent and owns its own child. Whose interests do the directors serve? How are conflicts managed? Or is this just some window dressing nonsense. I am looking for comments from ComEd, Exelon and regulators.

Caveat emptor