FirstEnergy ordered to pay more than $250 million for misconduct in sweeping Ohio bribery scheme

COLUMBUS, Ohio (AP) — Ohio utility regulators ordered Akron-based FirstEnergy on Wednesday to pay more than $250 million in fines and refunds as a result of its misconduct in a sweeping Statehouse bribery scandal whose fallout continues five years on.

The punishment meted out by the Public Utilities Commission of Ohio includes nearly $187 million to be returned to FirstEnergy customers, as well as almost $180 million in penalties for failing to properly direct fees collected for grid modernization to their stated purpose.

“The commission has remained steadfast in ensuring that we have followed the facts wherever they may lead,” Commission Chair Jenifer French said about the unanimous vote. “Our hope is the events underlying these proceedings will remain a cautionary lesson of accountability and honesty in utility regulatory matters.”

Company spokesperson Lauren Siburkis said Wednesday’s action “closes a chapter tied to activities that do not represent the company we are today.” Citing steps taken to improve the company’s culture, compliance programs and oversight of its political and lobbying practices, she said, “FirstEnergy is committed to accountability, transparency and rebuilding trust.”

The orders concluded three separate regulatory investigations of FirstEnergy that had been delayed by a ongoing Justice Department probe that burst into public view on July 21, 2020. That’s when then-Republican Ohio House Speaker Larry Householder, among the state’s most powerful politicians, and four associates were arrested and charged for their parts in an alleged $60 million racketeering scheme funded by FirstEnergy in exchange for a $1 billion nuclear plant bailout.

FirstEnergy later admitted to the bribes and agreed to pay $230 million to avoid prosecution. Householder was convicted by a jury in 2023 and sentenced to 20 years in prison, alongside lobbyist and former Ohio Republican Party Chair Matt Borges. Householder remains behind bars, while Borges was released last month to a halfway house in Cincinnati.

FirstEnergy also long ago fired several executives accused of involvement in the bribes, two of whom — former CEO Chuck Jones and Senior Vice President Michael Dowling — have been indicted and await trial. They have both pleaded not guilty. The energy giant also made significant strides in reforming its ethics policies and code of conduct in the wake of the scandal.

While praising those steps, utility commissioners said Wednesday that FirstEnergy must still face regulatory consequences for its actions.

“The underlying activity and bribes represent an unnerving shadow of our regulatory responsibilities in this state and have harmed every consumer we are entrusted to protect in the proceedings before us,” Commissioner Dennis Deters said.

Commissioner John Williams expressed deep disappointment in the electricity company.

“I’m hopeful the remedies we approved today will serve as a strong deterrent against similar misconduct in the future,” he said. “Our actions today should also stand as a clear reminder to FirstEnergy of the importance of continuing to reform its corporate culture and work diligently to rebuild the trust of the public.”

Consumer and environmental advocates welcomed the orders.

“In fining FirstEnergy over $250 million, the PUCO has sent a message to Ohio’s electric distribution utilities: corruption will not be tolerated,” Karin Nordstrom, the Ohio Environmental Council’s clean energy attorney, said in a statement. “At a time when Ohioans’ electric bills are skyrocketing, the commission has finally acted to hold FE accountable for HB 6, forcing FirstEnergy to repay its customers for money it unduly collected.”

“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.

Ohio Consumers’ Counsel Maureen Willis — whose office had pushed for $544 million in FirstEnergy penalties, including about $467 million in customer refunds — said the orders were, nonetheless, “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,” she said in a statement. “Today’s PUCO ruling reflects that Ohioans should never be made to pay for corporate misconduct.”