FirstEnergy to pay $249 million in restitution for HB6 scandal

FirstEnergy will pay additional restitution to its customers as a result of the Ohio House Bill 6 scandal. A settlement agreement approved by the Public Utilities Commission of Ohio will see FirstEnergy pay $249 million in restitution to customers over three billing periods, and provide an additional $20 million for low-income support programs. FirstEnergy is the parent company of the Cleveland Electric Illuminating Company, Ohio Edison and the Toledo Edison Company, serving households throughout Northeast Ohio. The company will also refund $12.8 million for improper charges, including interest, according to a PUCO news release. The restitution agreed to this week is in addition to $250 million in penalties levied against the utility company in November following a criminal investigation into the passage of state House Bill 6 in 2019. Passed by the General Assembly that year, the legislation bailed out two nuclear power plants in northern Ohio and two coal plants, after FirstEnergy paid $60 million in bribes to push the legislation forward. Those bribes included payments to former Ohio House Speaker Larry Householder, who was sentenced to 20 years in prison for the scheme in 2023. In a news release announcing the new settlement, PUCO Chair Jenifer French said the order brings to a close pending hearings against the utility and returns dollars to its customers. FirstEnergy President Torrence Hinton called the settlement a step forward, allowing the utility to move past legacy issues and show its commitment to putting customers first and working with regulators. According to FirstEnergy, Ohio Edison residential customers using 1,000 kilowatt-hour per month can expect to see a reduction of about $13 per month for three months. After the credits expire, Ohio Edison customers can expect to see those same bills increase by about $2.42 per month, according to FirstEnergy.