Ohio regulators launch probe into FirstEnergy's political and charitable contributions

• Published in: Utility Dive
• Main Author: Funk, John
• Format: Trade Publication Article
• Language: English
• Published: Washington Industry Dive 18.09.2020
• Subjects: Bailouts; Coal-fired power plants; Consumers; Investigations; Legislation; Legislators; Litigation; Politics; Public utilities; United States > US; Ohio

Dive Brief: * The Public Utilities Commission of Ohio on Tuesday opened a review of FirstEnergy's political and charitable contributions, following a request last week to the agency by the Ohio Consumers' Counsel for a broader management audit of the company. * FirstEnergy finds itself at the center of a nearly two year federal racketeering investigation by the U.S. Attorney for the Southern District of Ohio that led to the indictment of the Ohio Speaker of the House and four associates in July in connection with the legislature's approval last year of a bill subsidizing two nuclear and two coal plants. * The PUCO review follows revelations made in an unrelated federal lawsuit against a former FirstEnergy employee who allegedly stole internal documents and gave them to the Securities and Exchange Commission. Dive Insight: The continuing expansion of investigations involving FirstEnergy and its formerly affiliated power plant company FirstEnergy Solutions, which emerged from bankruptcy protection in February as Energy Harbor, has devalued the shares of both companies while sparking a political maelstrom among state lawmakers. The outlook for the bailout to survive remains sketchy as lawmakers, already nervous over public reaction to the revelations made by federal prosecutors, have learned that a proposal by regional grid operator PJM would, in effect, nullify the impact of any state subsidies to a power plant by taking them into account when setting the minimum price acceptable from them in future capacity market auctions.