State watchdog seeks probe of utility tied to bribery scheme

State watchdog seeks probe of utility tied to bribery scheme

SeattlePI.com

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CLEVELAND (AP) — Ohio's consumer watchdog has asked a regulatory agency to conduct an independent investigation of the state's largest electric utility, FirstEnergy Corp., that federal authorities have tied to a $60 million bribery scheme involving one of Ohio's most powerful politicians.

The Ohio Consumers' Counsel in a motion filed late Tuesday with the Public Utilities Commission of Ohio has asked that outside investigators examine whether money collected from consumers “was improperly used for any activities in connection with HB6 instead of for electric utility service.”

HB6 is now considered a tainted piece of legislation that, in part, created a $1 billion bailout of two Ohio nuclear power plants owned by a FirstEnergy subsidiary until early this year. The law requires a charge on all Ohio ratepayers' electric bills to fund the nuclear bailout.

The Consumers' Counsel also asked that the investigation and a management audit determine whether FirstEnergy violated any state laws or regulations.

The investigation should examine FirstEnergy's corporate governance and its "corporate relationships" with other FirstEnergy subsidiaries, the motion said.

HB6 was pushed through the Legislature last year by then-Ohio House Speaker Larry Householder. It also includes a provision potentially worth hundreds of millions of dollars to FirstEnergy that customers would pay for.

PUCO spokesman Matt Schilling in an email said the agency is required to conduct “management and financial audits of nuclear resources receiving funds from HB6.”

The nuclear plants were transferred through bankruptcy court earlier this year to a company created by creditors of a FirstEnergy affiliate that is now called Energy Harbor.

The bill includes yet another provision that could cost...

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