Akron-based FirstEnergy Corp. announced Thursday it will pay $100 million in a settlement agreement with the U.S. Securities and Exchange Commission (SEC) for misleading investors about the company’s role in the $60 million House Bill 6 scandal.
In the settlement, the SEC stated FirstEnergy participated in “a multi-year political corruption scheme” and its “executives worked directly with [Ohio Speaker of the House Larry] Householder to draft nuclear legislation that would ultimately become House Bill 6.”
House Bill 6, passed in 2019, constituted a $1 billion bailout of two nuclear power plants and two coal-fired plants owned by FirstEnergy.
“We are pleased to have reached a resolution with the SEC as we continue to turn a new chapter,” said Brian X. Tierney, president and chief executive officer, in a statement. “Our focus today is investing in our regulated electric companies to improve the customer experience and support the energy transition.”
The $100 million is a civil penalty — it was disclosed in the company’s second-quarter earnings materials, which indicated that it had taken a reserve of $100 million in the second quarter of 2024 in anticipation of the agreement with the SEC.
Indictments in Summit County Court of Common Pleas
In February, the investigation into the bribery scandal brought indictments, with a total of 27 felony violations, for:
- Samuel “Sam” Randazzo, former PUCO chairman
- Charles “Chuck” Jones, former CEO of FirstEnergy
- Michael Dowling, former FirstEnergy Senior Vice President of External Affairs
Two companies allegedly controlled by Randazzo – the Sustainability Funding Alliance of Ohio and IEU Ohio Administration Co. – were also named in the filing. Both are alleged to be shell companies created solely for furthering Randazzo’s alleged criminal activity, according to a press release from Ohio Secretary of State Dave Yost’s office.
After a lengthy federal trial in 2023, former House Speaker Larry Householder, R-Glenford, was sentenced to 20 years in prison for his role in the scandal. Former Ohio GOP Chairman Matt Borges was sentenced to five years for his.
Two others pleaded guilty and await sentencing. Another defendant, lobbyist Neil Clark, died by suicide.
In April, Randazzo reportedly died by suicide.
In 2021, FirstEnergy Corp. agreed to a deferred prosecution settlement with the Justice Department and agreed to pay $230 million.
FirstEnergy’s electric distribution companies form one of the nation’s largest investor-owned electric systems. It serves customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York.
