The Public Utilities Commission of Ohio, the state’s utilities regulator, will end its House Bill 6-related investigations into FirstEnergy Corp. by approving a settlement agreement filed with the agency last month.
The settlement between Akron-based FirstEnergy and multiple other groups — including the Office of the Ohio Consumers’ Counsel (OCC), the Ohio Manufacturers’ Association Energy Group and the Retail Energy Supply Association — will provide FirstEnergy customers with $249 million in restitution over three billing periods, the commission said in a news release.
The settlement also designates $20 million to fund low-income programs, the release said. Additionally, FirstEnergy will refund $6.6 million and roughly $6.2 million in interest for improper charges, as well as provide the Retail Energy Supply Association $5 million in restitution for corporate separation regulation violations.
“This order brings finality to these four cases and most importantly returns these dollars to the FirstEnergy customers,” PUCO Chair Jenifer French said in a prepared statement.
Nearly $276 million will be returned to FirstEnergy’s Ohio customers.
Portions of that sum already had been announced in a restitution plan that would have applied rebates to bills in January, February and March. However, a commission review stemming from the settlement will affect the timeline of when restitution will be applied, FirstEnergy spokeswoman Jennifer Young said via email.
In November orders, PUCO directed FirstEnergy to pay nearly $180 million to customers and $64.1 million to the state’s general revenue fund over the H.B. 6 scandal — plus another $6.6 million for certain costs that were misallocated to customers.
The settlement approved by PUCO in January will not include the previously announced $64.1 million in civil forfeitures, according to the commission’s January release.
“This agreement is a major step that allows us to move past legacy issues while showing our commitment to putting customers first and working transparently with regulators and stakeholders,” Torrence Hinton, FirstEnergy president, Ohio, said in a prepared statement. “With these proceedings resolved, we are focused on delivering value today and investing $14 billion in our Ohio transmission and distribution infrastructure, workforce and facilities through 2029 to build a stronger, more resilient energy future for the state.”
Additional signatories to the settlement include Northeast Ohio Public Energy Council, Northwest Ohio Aggregation Coalition, the Ohio Energy Group, the Ohio Environmental Council, Ohio Partners for Affordable Energy, the Citizens’ Utility Board of Ohio, the Natural Resources Defense Council, Interstate Gas Supply, Direct Energy Services and the Ohio Cable Telecommunications Association.
FirstEnergy calculates estimated bill impacts
FirstEnergy has calculated estimated bill impacts and will submit relevant documentation for PUCO’s review, Young said.
The commission’s review will determine the amounts and timeline of the restitution that FirstEnergy will pay to customers over three billing periods, as well as new rates after those three months are up, Young said.
For the three Ohio Edison billing periods with restitution applied, FirstEnergy estimates an approximate $13.27 decrease on the bills of customers using 1,000 kilowatt-hours (kWh) of electricity per month compared to January bills, per a news release from the utility. After the three-month restitution period, Ohio Edison customers using 1,000 kWh per month could see an increase of $2.42 per month compared to January bills.
In reality, most Ohio Edison customers will see a smaller refund than this example amount because residential customers tend to use less than 1,000 kWh of electricity per month. Average residential electricity use in Ohio was 846 kWh per month in 2024, according to an October report from the U.S. Energy Information Administration.
OCC director: ‘Consumers come first.’
OCC requested PUCO to investigate FirstEnergy’s involvement in the House Bill 6 bribery scheme, OCC Director Maureen Willis said in a prepared statement.
“Today those investigations are complete,” Willis said. “FirstEnergy broke the law. This settlement delivers consequences — and consumers get the relief. Accountability matters. The Law matters. Consumers come first.”
FirstEnergy admitted, made payments for, role in HB 6 scandal
The House Bill 6 scandal involved FirstEnergy bribing former Ohio House Speaker Larry Householder to pass a bill bailing out two nuclear power plants and protecting FirstEnergy profits. Householder is serving a 20-year prison sentence on federal charges and also faces state charges.
Additionally, FirstEnergy admitted to bribing former PUCO Chair Sam Randazzo. The ex-agency chair, who is now deceased, helped write House Bill 6 and voted to allow FirstEnergy to sidestep a rate case that could’ve cost the utility millions of dollars.
A criminal trial in the case of two former FirstEnergy executives who prosecutors allege bribed Randazzo is scheduled to begin this month.
FirstEnergy admitted to its role in the bribery scheme and paid a $230 million penalty rather than face federal charges. The company paid $100 million in a settlement agreement with the U.S. Securities and Exchange Commission, $3.9 million to federal utility regulators and an additional $20 million to avoid state charges.
Patrick Williams covers growth and development for the Akron Beacon Journal. He can be reached by email at pwilliams@usatodayco.com or on X, formerly known as Twitter, @pwilliamsOH. Sign up for the Beacon Journal’s business and consumer newsletter, “What’s The Deal?”
This article originally appeared on Akron Beacon Journal: Ohio regulator approves settlement to end its FirstEnergy HB 6 cases
Reporting by Patrick Williams, Akron Beacon Journal / Akron Beacon Journal
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