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Democrats blast FirstEnergy $20m settlement to avoid criminal charges as “unacceptable”

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COLUMBUS, Ohio (Statehouse News Bureau) — Some Democrats are outraged that FirstEnergy won’t face state criminal charges in the $60 million bribery scheme surrounding the billion-dollar nuclear power plant bailout law House Bill 6. The company has agreed to two years of continued cooperation with state and Summit County prosecutors and a $20 million payout.

Rep. Allision Russo (D-Upper Arlington), House Democratic leader, stands at a podium with many of her fellow Democratic caucus members in the Ohio Statehouse press briefing room.
Rep. Allision Russo (D-Upper Arlington), House Democratic leader, stands at a podium with many of her fellow Democratic caucus members in the Ohio Statehouse press briefing room. [Karen Kasler | Statehouse News Bureau]
The payout is “a paltry sum, if you look at the scale of this corruption scandal,” said House Minority Leader Allison Russo (D-Upper Arlington). “The fact that it was a negotiated settlement of $20 million, which is just a fraction of what it has cost Ohioans is, I think, stunning. And I think most everyday people see this as just unacceptable.”

FirstEnergy had admitted in 2021 that it bribed now-imprisoned former House speaker Larry Householder and former public utilities commission chair Sam Randazzo to get and keep the billion dollar nuclear power plant bailout known as HB 6. The company agreed to a $230 million fine as part of that deal.

After the scandal broke, the nuclear power plant subsidies in HB 6 were repealed, but the rest of the sweeping energy law remains. That includes the gutting of utilities’ energy efficiency programs and renewable energy requirements, and subsidies to two coal-fired plants operated by the Ohio Valley Electric Corporation. Russo said it’s estimated utility customers have paid $343 million in subsidies to those plants, and continue to pay around $500,000 a day.

“Is this really what is in the best interest of Ohio taxpayers, who have already paid hundreds of millions of dollars as a result of the largest corruption scandal in state history?” said Senate Minority Leader Nickie Antonio (D-Lakewood) in a statement. “This settlement seems to consist of too little, too late in terms of accountability and justice for ratepayers.”

While Republican Attorney General Dave Yost has noted FirstEnergy’s leadership changes, Russo said the company still hasn’t released an internal investigation of the conduct of former executives Chuck Jones and Michael Dowling. They’ve pleaded not guilty to charges of corruption, bribery and money laundering. Randazzo was also indicted but died by suicide in April.

“Kudos to [FirstEnergy] for restructuring, but I think the debt to Ohioans and this state for the damage that has been caused by this largest corruption scandal in our state’s history has not been paid,” Russo said.

Nine House Democrats and three Democratic senators voted for House Bill 6 in 2019. Only one of those lawmakers, Rep. Terrence Upchurch (D-Cleveland), is still in the legislature. Twenty-four Democrats in the House and six Democratic senators voted against the bill, including Antonio. Russo wasn’t a member of the legislature at the time.