Racketeering Complaint Filed Against Ohio Speaker and Aides Exposes Bribery Scheme

Strategic Insights -

As the FBI arrests and charges Ohio House Speaker Larry Householder and his aides for their alleged involvement in a multibillion-dollar bailout of FirstEnergy's aging nuclear power plants, residents and groups in neighboring Pennsylvania are not surprised. This revelation comes as no surprise to former Ohio Public Utilities Commission Chairman Todd Snitchler, who warns that when politically powerful interests can pay to have their favored policies passed into law, it undermines energy and environmental progress.

Key Takeaways:

  • The U.S. Attorneys Office filed an 82-page racketeering complaint against Ohio House Speaker Larry Householder, his aides, and FirstEnergy Solutions lobbyist Juan Cespedes, alleging a multibillion-dollar bailout scheme.
  • The alleged bribery scheme involved more than $60 million in bribe money from FirstEnergy Corp. to secure the passage of House Bill (HB) 6, which provided a bailout for two of FirstEnergy's aging nuclear power plants.
  • The bailout law, signed into effect in July 2019 by Ohio Gov. Mike DeWine, forces Ohio electricity customers to pay a new monthly surcharge ranging from $0.85 for residential customers to $2,400 for large industrial plants from 2021 to 2027.
  • The alleged bribery scheme involved the use of Generation Now Inc., a nonprofit political action committee that supported Householder's bid to return as House speaker.
  • Utility companies like Energy Harbor contend that states should prioritize their nuclear plants' carbon-free energy rather than fossil fuels, a stance supported in states like Ohio, Illinois, and New Jersey.
  • In contrast, Pennsylvania has not joined the Regional Greenhouse Gas Initiative (RGGI) due to concerns over the carbon tax's impact on employers and ratepayers.
  • Energy Harbor, which owns the nuclear Beaver Valley Power Station, has announced plans to revisit deactivation by 2022 if RGGI does not proceed as expected.
  • Both Republican and Democratic lawmakers in the Ohio House have announced plans to introduce legislation to repeal HB 6 in light of the federal racketeering complaint.

Statistics:

  • $60 million: the amount of bribe money allegedly paid by FirstEnergy Corp. to secure the passage of House Bill (HB) 6.
  • $2.4 billion: the estimated cost of the bailout for the two FirstEnergy-owned nuclear power plants.
  • $0.85-$2,400: the monthly surcharge that Ohio electricity customers must pay from 2021 to 2027 to support the bailout.
  • 2021-2027: the timeframe for the surcharge to be in effect.
  • 82 pages: the length of the federal racketeering complaint filed by the U.S. Attorneys Office.

Sources:

  • "U.S. Attorney David DeVillers discusses the Householder bribery scheme" (Legal Monitor Worldwide, 2020)
  • "Ohio House Speaker Larry Householder, aides charged in federal bribery scheme" (Legal Monitor Worldwide, 2020)
  • "Energy Harbor to revisit deactivation of nuclear plant in Pennsylvania" (Legal Monitor Worldwide, 2020)
  • "HB 6: Ohio's Energy Disaster Waiting to Happen" (Electric Power Supply Association, 2020)