FirstEnergy wants to raise prices following repeal of scandal-tainted legislation

Yahoo

01-04-2025

FirstEnergy's headquarters in Akron. (Photo from Google Maps.)
Ohio lawmakers plan to repeal the remaining aspects of scandal-tainted legislation, saving ratepayers money and eliminating FirstEnergy's House Bill 6. As this happens, the utility company wants to increase consumers' bills.
Like clockwork, energy costs go up in the winter.
'It's been a long winter for us here in Ohio,' Clevelander John Makley said.
With a shaky economy and increasing FirstEnergy bills, Makley worries about his retirement.
'Do I have to manage to get to work and walk with a cane or a walker just to maintain a paycheck?' he asked.
FirstEnergy is now asking for even more money from the Public Utilities Commission of Ohio (PUCO) for a $190 million increase in their charges.
'Instead of a $190 million distribution rate increase, the FirstEnergy utilities should be getting a haircut,' Agency Director of the Office of Consumers' Counsel (OCC) Maureen Willis said. 'Consumers electric utility bills are already packed with soaring transmission costs and rising energy prices. Affordability remains a key issue for Ohio families and businesses.'
The OCC estimates that Cleveland Illuminating Company consumers will see a $13 price increase per month, Ohio Edison will have a $3 spike, and Toledo Edison a $1.50 increase.
Makley is already frustrated by his current energy bill.
Taking a look at his charges, in the fine print, there is a subsidy that requires ratepayers to fund two Ohio Valley Electric Corporation coal plants — one in Southern Ohio and one in Indiana. The main beneficiaries for OVEC are American Electric Power Company (AEP), Duke Energy and AES Ohio. Still, FirstEnergy collects payment for it.
But thanks to the lawmakers, his energy costs may go down soon.
'They're thinking about the people and working to right a wrong that was put into the legislation so long ago,' Makley said.
To find out which rider (a utility surcharge) on his bill benefited the plants — since it wasn't on the bill — we had to search through the 150-page document on FirstEnergy's website about tariffs.
Still, there was no mention of OVEC under any of the riders. We reached out to the company to find out where it was — turns out it falls under a rider on page 146 with the 'Legacy Generation Resource Rider.'
This handout was part of House Bill 6, corrupt legislation that landed former House Speaker Larry Householder in federal prison for 20 years.
Back in 2019, Householder funneled $61 million worth of bribes in exchange for legislation to give FirstEnergy a $1.3 billion bailout, named H.B. 6, at ratepayers' expense.
In March 2023, a jury found that Householder and former GOP leader Matt Borges, beyond a reasonable doubt, participated in the racketeering scheme that left four men guilty. Neil Clark, a lobbyist accused of bribery, died by suicide after pleading not guilty in 2021.
In late June that year, federal judge Timothy Black sentenced Householder to 20 years in prison. Borges got five years. Two defendants — Jeff Longstreth and Juan Cespedes — took plea agreements early on, helping the FBI, and are still awaiting their sentencing. The feds are asking for zero to six months for them.
Former FirstEnergy CEO Chuck Jones, former FirstEnergy Senior Vice President Michael Dowling, and former PUCO Sam Randazzo were all hit with state bribery charges. Each pleaded not guilty during their joint arraignment in mid-February 2024. They are accused of masterminding the corruption scheme.
In April 2024, Randazzo would become the second defendant accused in the scandal to die by suicide.
Recently, Householder's attorney said his team plans to use their connection to President Donald Trump to try to get out of prison.
This past month, the Ohio House passed H.B. 15, and the Senate passed S.B. 2 — similar energy bills — but both repealed the subsidies for the unprofitable plants.
'If we leave this OVEC portion in place, it's going to cost our taxpayers hundreds of millions of dollars for a bill that was bought and paid for in the largest scandal in Ohio history,' state Rep. Josh Williams, R-Sylvania, said.
A study commissioned by the Ohio Manufacturers' Association found that in 2024 alone, these subsidies cost ratepayers roughly $200 million. The company lost more than $100 million the same year, so consumers are paying for plants that aren't profitable.
The subsidies may not seem like a lot every month, but they add up when inflation is high and people struggle.
You would be saving $1.30 and $1.50 per month, depending on your utility provider, according to the Energy News Network.
While the bill was passed overwhelmingly in each chamber, former House Speaker Jason Stephens, R-Kitts Hill, argued that it could cause people to lose jobs if the plants shut down.
'There are Ohioans who work at this plant for generations — their grandfathers worked there,' Stephens said.
The Ohio plant is in Stephens's district, and the former leader prevented similar legislation from being heard in the last General Assembly.
He explained that in a previous G.A., part of H.B. 6 was repealed, but the lawmakers chose to keep the coal plant money. Then, in the 134th G.A., lawmakers passed H.B. 128 — which took out funding for nuclear power plants.
House Speaker Matt Huffman didn't seem impressed by Stephens's remarks.
'This money doesn't go to Lawrence County to help that plant,' the speaker told reporters after the vote. 'It goes in Duke's checking account in Charlotte, North Carolina, and they decide over many states, not necessarily to spend any money.'
Only three lawmakers voted against it in the House — Stephens and state Reps. Don Jones, R-Freeport, and Latyna Humphrey, D-Columbus.
'I understand and respect your — the corruption that everyone wants to attach to House Bill 6,' Jones said. 'I was here for House Bill 6 — it's the lens in which you look at it through.'
He continued that his county has about 700 coal miners who rely on these plants.
'When Ohio makes a promise, whether we like the promise or not… We should honor that,' Stephens added.
'At whose expense?' Makley responded.
OVEC and the utility companies are lobbying for at least some grace period — a sliding ramp of two years for them to eliminate the subsidies.
'Ohio Valley Electric Company power plants have provided Ohioans with reliable power, helped make Ohio's economic development possible and supported our nation's security interests,' Scott Blake with OVEC and AEP said. 'We continue to advocate for a reasonable timeline for transitioning the cost recovery for the OVEC plants and will work with policy makers as the legislative process continues.'
There is still a process before you could see your bills go down. Each chamber will have to agree on one policy, which is then sent to the governor.
Gov. Mike DeWine in January said, when asked, that he would support repeal.
Asked what it would take to earn his trust back on energy policy in Ohio, Makley said that's a tough one.
'Transparency is really important,' he said. 'We need to see what we're paying for.'
The lawmakers who support it say they are hoping to close this dark chapter in state history.Follow WEWS statehouse reporter Morgan Trau on Twitter and Facebook.
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