Akron, Ohio-based FirstEnergy Corporation has been charged with wire fraud and will pay a $230 million monetary penalty over its role in a $61-million corruption and racketeering scheme to secure state subsidies for Ohio’s nuclear power plants, Davis-Besse and Perry.

The final nail in the coffin of Ohio’s nuclear subsidies occurred on March 31 when Gov. Mike DeWine signed H.B. 128, a bill passed unanimously by the state’s Senate last Thursday.

Approved 86-7 by the Ohio House on March 10, H.B. 128 strips the nuclear subsidy provisions from H.B. 6, the controversial and, since last July, scandal-scarred piece of legislation signed into law in 2019 to aid Ohio’s economically challenged nuclear facilities, Davis-Besse and Perry.

H.B. 128 also removes the earlier bill’s “decoupling” provision, which would have been of substantial financial benefit to FirstEnergy Corporation, the former parent company of Energy Harbor, owner and operator of Davis-Besse and Perry. The new bill retains H.B. 6’s subsidies for utility-scale solar projects, however, and for two coal plants (one in Ohio, one in Indiana).

H.B. 128 was sponsored by Reps. James Hoops (R., 81st Dist.) and Dick Stein (R., 57th Dist.).

The Ohio House of Representatives has voted to rescind the nuclear subsidy provisions of H.B. 6, the controversial 2019 piece of legislation that has been marinating in scandal since last July. Just one week earlier, a similar measure was passed unanimously in the Ohio Senate.

Approved by a tally of 86-7 on March 10, H.B. 128 strips H.B. 6 of subsidies for Energy Harbor’s Davis-Besse and Perry nuclear plants, as well as a “decoupling” provision that would have been of substantial financial benefit to FirstEnergy Corporation, the former parent company of Energy Harbor. The new bill retains H.B. 6’s subsidies for utility-scale solar projects, however, and for two coal plants (one in Ohio, one in Indiana).

H.B. 128 was sponsored by Reps. James Hoops (R., Dist. 81) and Dick Stein (R., Dist. 57).

After months of unsuccessful efforts by Ohio lawmakers to contend with the fallout from H.B. 6—the now-infamous nuclear subsidies bill signed into law in 2019—the state’s senate on March 3 passed a measure, S.B. 44, to repeal those subsidies. The vote was 32–0.

For those who may need reminding, federal prosecutors on July 21, 2020, arrested Larry Householder, then speaker of the Ohio House, and four lobbyists and political consultants for their involvement in an alleged $61 million corruption and racketeering scheme aimed at guaranteeing passage of H.B. 6, whose subsidies had kept Ohio’s Davis-Besse and Perry nuclear power plants from premature closure.

H.B. 6 established a seven-year program to charge the state’s electricity consumers fees to support payments of about $150 million annually to the plants’ operator, Energy Harbor Corporation, then known as FirstEnergy Solutions (FES). FES had announced in March 2018 that it would be forced to close Davis-Besse and Perry without some form of support from the state. (The payments to Energy Harbor were blocked last December by an Ohio Supreme Court injunction, which complemented an earlier lower court ruling.)

The Associated Press is reporting that Energy Harbor (formerly FirstEnergy Solutions), owner of the Davis-Besse and Perry nuclear plants, may decline the subsidies provided for those facilities by HB6—the scandal-tainted Ohio bill that was signed into law in 2019. (In late December of last year, the Ohio Supreme Court issued a temporary stay to stop collection of the HB6-mandated fee from Ohio ratepayers that was set to begin January 1.)

Householder

Federal prosecutors on July 21 arrested the Speaker of the Ohio House of Representatives, Larry Householder, and four lobbyists and political consultants for their involvement in an alleged $61-million corruption and racketeering scheme aimed at guaranteeing passage of H.B. 6, the Ohio Clean Air Program Act—the measure that rescued Ohio’s Davis-Besse and Perry nuclear power plants from premature closure. If convicted, Householder et al. face up to 20 years in prison.

FirstEnergy Solutions (FES) announced on February 27 that it has emerged from bankruptcy and officially taken the new name Energy Harbor Corporation. Originally the unregulated power generation arm of Akron, Ohio–based FirstEnergy Corporation, Energy Harbor remains headquartered in Akron but is no longer affiliated with FirstEnergy Corporation. The name chosen to represent the newly independent business was announced last November (NN, Jan. 2020, p. 16).