FirstEnergy ordered to pay more than $250 million for misconduct in sweeping Ohio bribery scheme
COLUMBUS, Ohio (AP) — Ohio utility regulators on Wednesday ordered Akron-based FirstEnergy to pay more than $250 million in fines and restitution as a result. his abuse inside A massive bribery scandal at the Statehouse whose fallout continues five years later.
The penalty imposed by the Ohio Public Utilities Commission includes approximately $187 million to be refunded to FirstEnergy customers, as well as a penalty of approximately $180 million for failure to properly direct fees collected for grid modernization to specified purposes.
Commission Chair Jenifer French said of the unanimous vote: “The Commission has been committed to ensuring that we follow the facts wherever they lead.” “Our hope is that the events underlying these transactions remain a cautionary lesson in accountability and integrity in utility regulatory matters.”
Company spokeswoman Lauren Siburkis said Wednesday’s action “closes a chapter on activities that do not represent the company we are today.” “FirstEnergy is committed to accountability, transparency and rebuilding trust,” he said, citing steps taken to improve the company’s culture, compliance programs and oversight of political and lobbying practices.
The orders conclude three separate regulatory investigations into FirstEnergy that were postponed due to an ongoing Department of Justice investigation that became public on July 21, 2020. That’s when Republican Ohio House Speaker Larry Household, one of the state’s most powerful politicians, and four of his associates were arrested and charged for their part in a $60 million extortion scheme allegedly funded by FirstEnergy. $1 billion nuclear power plant rescue plan.
FirstEnergy later accepted the bribe and Agreed to pay 230 million dollars to avoid prosecution. Homeowner (previous value) convicted by jury in 2023 and sentenced to 20 years in prison in prison with lobbyist and former Ohio Republican Party Chairman Matt Borges. While Landlord remains behind bars, Borges was released to a rehabilitation center in Cincinnati last month.
FirstEnergy also a long time ago fired several executives Two of those accused of participating in the bribery (former CEO Chuck Jones and Senior Vice President Michael Dowling) was accused and we are waiting for the hearing. Both pleaded not guilty. The energy giant also took important steps to reform its ethics policies and codes of conduct following the scandal.
While utility commissioners praised those steps Wednesday, they said FirstEnergy still must face regulatory consequences for its actions.
“The underlying activities and kickbacks represent a frustrating shadow of our regulatory responsibilities in this state and have harmed every consumer we are charged with protecting going forward,” Commissioner Dennis Deters said.
Commissioner John Williams expressed deep disappointment in the electric company.
“I hope that the remedies we approve today will serve as a strong deterrent against similar abuses in the future,” he said. “Our actions today should also serve as a clear reminder to FirstEnergy of the importance of continuing to reform its corporate culture and working diligently to rebuild public trust.”
Consumer and environmental advocates welcomed the orders.
“By fining FirstEnergy over $250 million, PUCO sent a message to Ohio’s electric utilities: corruption will not be tolerated,” Karin Nordstrom, clean energy attorney for the Ohio Environmental Council, said in a statement. he said. “At a time when Ohioans’ electric bills are skyrocketing, the commission has finally moved to hold FE accountable for HB 6, forcing FirstEnergy to refund customers the money it wrongfully collected.”
“Ohioans expect and deserve fair electric bills and law-abiding utility companies. Today’s PUCO decision, which requires fines, damages and refunds, is an important milestone in restoring the harms caused by FirstEnergy.
Ohio Consumer Advocate Maureen Willis, whose office is seeking $544 million in FirstEnergy fines, including $467 million in customer refunds, said the orders nevertheless represent “an important milestone in recovering damages caused by FirstEnergy.”
“For five years, the Consumer Law Firm and others have pushed for accountability and relief on behalf of consumers,” he said in a statement. “Today’s PUCO decision reflects that Ohioans should never have to pay the price for corporate abuses.”
