COLUMBUS, Ohio — The Public Utilities Commission of Ohio (PUCO) has ordered Akron-based FirstEnergy to pay over $250 million in fines and refunds due to its involvement in a significant bribery scandal that continues to affect the state five years later. The financial penalty includes nearly $187 million that will be refunded to FirstEnergy customers, along with nearly $180 million in fines for the improper allocation of fees intended for grid modernization.
Commission Chair Jenifer French emphasized the commission’s commitment to accountability, stating, “The commission has remained steadfast in ensuring that we have followed the facts wherever they may lead.” She expressed hopes that the ongoing events would serve as a warning about accountability and honesty in utility matters.
A spokesperson for FirstEnergy, Lauren Siburkis, commented that this decision marks a closure on a troubling chapter for the company. She highlighted the measures taken to enhance the company’s culture and compliance systems, asserting FirstEnergy’s commitment to accountability and transparency moving forward.
These orders wrapped up three separate regulatory investigations into FirstEnergy, which had been stalled due to a continuing Justice Department inquiry. The scandal first gained notoriety in July 2020 when former Ohio House Speaker Larry Householder and four associates were arrested, accused of participating in a $60 million racketeering scheme that involved FirstEnergy funding in exchange for a $1 billion bailout for a nuclear plant.
FirstEnergy has previously confessed to the bribery and arranged to pay $230 million to circumvent prosecution. Householder was sentenced to 20 years in prison following his conviction in 2023, and his associate Matt Borges was released last month to a halfway house after serving part of his sentence.
The company has since terminated several executives implicated in the scandal, including former CEO Chuck Jones and Senior Vice President Michael Dowling, who face indictments and have pleaded not guilty. In the aftermath of the scandal, FirstEnergy has made significant reforms to its ethics policies and procedures.
Although utility commissioners acknowledged these reforms, they insisted that regulatory actions were still necessary. Commissioner Dennis Deters conveyed the gravity of the situation, stating that the bribes represented a troubling disregard for the regulatory responsibilities entrusted to them.
Commissioner John Williams conveyed dissatisfaction with the company, expressing hope that the penalties would deter similar wrongdoing in the future. He reiterated the importance of FirstEnergy’s continued reform to regain public trust.
Consumer and environmental advocates have positively greeted the PUCO’s decision. Karin Nordstrom, an attorney with the Ohio Environmental Council, remarked that imposing fines on FirstEnergy sends a strong message that corruption will not be tolerated. She highlighted the necessity of accountability, particularly amid rising electric bills for Ohioans.
Ohio Consumers’ Counsel Maureen Willis, who advocated for greater penalties, also regarded the fines and refunds as an essential step in addressing the harm caused by FirstEnergy’s actions. She emphasized that Ohioans should not be burdened by corporate malfeasance, affirming that the PUCO’s ruling signals a vital move toward accountability and fairness in utility billing.