[USA] FirstEnergy agrees to pay $230 million fine for bribing Ohio officials

On July 22, 2021, FirstEnergy Corporation announced that it had reached a settlement agreement with the U.S. Attorney’s Office for the Southern District of Ohio to pay a $230 million penalty for bribing Ohio officials to guarantee the passage of Creates Ohio Clean Air Program (HB-6).[1][2] Passed on July 23, 2019, HB-6 created a ratepayer-funded $1.5 billion subsidy for two northern Ohio nuclear power plants previously owned by FirstEnergy and two coal-fired plants on the Ohio River jointly owned by the state's utilities. When the bill was being considered, FirstEnergy strongly lobbied for the passage of HB-6 and said that it would otherwise have to prematurely close the two nuclear plants. According to the federal disclosure, FirstEnergy cooperated with federal investigators to disclose bribing state officials through dark money groups to get HB-6 passed. FirstEnergy and its subsidiaries donated $59 million between 2017 and 2020 to Generation Now, a group controlled by then-Speaker of the Ohio House of Representatives Larry Householder (R). The company set up a group called Partners for Progress in February 2017 as a 501(c)(4), which are registered lobbying entities, through which it directed $25 million "to entities associated with public officials" over two years.

The U.S. Attorney's Office for the Southern District of Ohio charged FirstEnergy for conspiring to commit honest services wire fraud. The charge will be dismissed so long as FirstEnergy cooperates with the government for the three-year period of the settlement agreement. FirstEnergy must disclose all political donations, including those made to dark money groups, during the three-year period of the agreement. In addition, the agreement requires the company to take other steps such as establishing an executive director role for the Board of Directors and hiring a new chief legal officer.

[1] https://www.firstenergycorp.com/newsroom/news_articles/firstenergy-reaches-agreement-to-resolve-department-of-justice-i.html

[2] https://www.justice.gov/usao-sdoh/pr/firstenergy-charged-federally-agrees-terms-deferred-prosecution-settlement