Refunds and fines
The utilities were ordered to return to customers $179.9 million over three billing cycles, along with refunding another $6.64 million plus interest for certain transactions that were misallocated or that it billed to customers without supporting documents, as identified by a 2021 audit. The calculations for the refunds are due with PUCO by Nov. 26, with payments going out the next billing cycle.
In addition to payments to the customers, PUCO ordered FirstEnergy to pay just over $64 million in civil forfeitures for violating Ohio’s corporate separation laws, disclosure laws and several areas of a PUCO 2021 corporate separation audit.
HB 6 bribery scheme
FirstEnergy and two former executives were central figures in a $60 million bribery scheme that funneled money through dark money group Generation Now to Ohio Republican politicians in exchange for passing House Bill 6, which included a bailout for FirstEnergy, as well defeating an attempt to repeal the bill.
Credit: AP
Credit: AP
FirstEnergy also reportedly sent more than $4.3 million to former PUCO chairman Samuel Randazzo before he was appointed to provide more favorable official policy for the company.
The investigation led to charges against FirstEnergy, Generation Now, former leader of the House Larry Householder, Householder strategist Jeffrey Longstreth, and lobbyists Juan Cespedes and Neil Clark.
Credit: AP
Credit: AP
Longstreth and Cespedes both took plea deals in federal court, while Householder went to trial and was sentenced to 20 years in prison.
Clark and Randazzo both pled not guilty but died by suicide before trial.
PUCO, Ohio Consumers’ Counsel comments
PUCO said that the violations for which it is fining FirstEnergy showed a “pattern of violations contributed to the conduct giving rise to the HB 6 scandal.”
The commission said that since the scandal was revealed, the utility companies have demonstrated changes to increase oversight and transparency, and its new leadership is focusing on changing the corporate culture. However, it said, “the Commission will remain vigilant to ensure this newfound motivation renders results.”
PUCO Chair Jenifer French said, “These proceedings were the first, and we trust the last, of their kind. It is our responsibility and duty to impose appropriate remedies so as to ensure that they are.”
In a statement, Ohio Consumers’ Counsel agency director Maureen Willis said, “Ohioans expect and deserve fair utility bills and utility companies that follow the law. Today’s PUCO order requiring fines, restitution and refunds is an important milestone in fixing the harms FirstEnergy caused. For five years, the Office of the Consumers’ Counsel and others pressed for accountability and relief on behalf of consumers. Today’s PUCO ruling reflects that Ohioans should never be made to pay for corporate misconduct.”
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