FirstEnergy continues effort to raise prices as Ohio repeals scandal-ridden bill

Yahoo

21-05-2025

Smart energy meter. (Stock photo via Getty Images)
While energy prices are set to jump this summer, Ohio Gov. Mike DeWine signed a bill into law that could provide some relief — eliminating a subsidy from the scandal-ridden Ohio House Bill 6 that requires ratepayers to fund unprofitable coal plants. As this happens, utility companies are moving to increase consumers' bills.
Back in 2019, Former Ohio House Speaker Larry Householder took and funneled $61 million worth of bribes in exchange for legislation to give utility company FirstEnergy a $1 billion bailout, named H.B. 6, all 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 and two dead.
In late June that year, federal judge Timothy Black sentenced Householder to 20 years in prison. Borges got five years for his role in the scheme, but most importantly, he attempted to bribe Tyler Fehrman, an FBI whistleblower, with $15,000 to help kill a repeal effort he was working on. On video, Borges told Fehrman that if he told anyone about the bribe, he would 'blow up' his house.
While some of H.B. 6 was overturned already, ratepayers have been paying a subsidy that funds 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 with the swipe of a pen — consumers will likely see their bills go down. DeWine signed a massive energy overhaul bill, H.B. 15, on Friday. It repeals the OVEC charges.
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.
Consumers can expect to save between $1.30 and $1.50 per month, depending on their utility provider, according to the Energy News Network.
The subsidies may not seem like a lot every month, but they add up when inflation is high and people struggle.
'It makes a difference, especially in today's day and age with a kind of shaky economy and folks trying to just make ends meet,' Fehrman said.
While this will save citizens a bit of money, Householder attorney Scott Pullins argues that this will hurt the rural areas it serves.
'They are major high-paying jobs in the area, and the kind of area where there aren't very many high-paying jobs,' Pullins said about the plant jobs. 'They generate a whole boatload of taxes for schools in those areas. And if those plants get shut down, it's going to be devastating for those communities.'
The Ohio plant employs many Ohioans, he added. But now, this may embolden utility companies to ask for more rate hikes, he said. This is already happening.
'Our electric grid needs to be modernized,' Pullins said. 'I'm assuming that those are where those costs are going. I think we do need a robust regulatory scheme to make sure these companies aren't wasting these funds.'
FirstEnergy is now petitioning the Public Utilities Commission of Ohio (PUCO) to raise its prices — a $190 million increase in its charges.
If approved, the Ohio Consumers' Counsel estimated that Cleveland Illuminating Company consumers will see a $13 price increase per month, Ohio Edison will have a $3 spike, and Toledo Edison at $1.50.
On Monday, DeWine said he doesn't have an opinion on the price increases.
'As far as the raising of bills, ultimately, as you know, this is up to the PUCO,' he said.
Fehrman said this shouldn't be allowed.
'There is this massive scandal where these companies tried to put a larger burden on the backs of every single Ohioan,' he said. 'And now, they're asking for more money in a time when folks are already struggling.'
The bill will go into effect in 90 days.
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