More details became public this week on FirstEnergy Corp.’s payments to Sam Randazzo, a lobbyist for the corporation who became chairman of the Public Utilities Commission of Ohio, to nurture the company’s alleged scheming to get state subsidies for two struggling reactors.
Almost two weeks ago, FirstEnergy agreed to pay a $230 million fine for its role in a major bribery scandal involving the reactors and the now-ousted former speaker of the Ohio House of Representatives.
According to a Monday filing with the U.S. District Court, FirstEnergy funneled $22 million since 2013 to two unidentified companies operated by Randazzo, the utilities lobbyist.
Of that, $4.3 million went to Randazzo in early 2019, just before Gov. Mike DeWine appointed him chairman of the Public Utility commission of Ohio. The purpose of the payment, according to the court filing, was to instill Randazzo at PUCO to shield the $150 million annual subsidies earmarked for the Besse-Davis and Perry reactors, the filing said. Randazzo also allowed FirstEnergy to dodge a future 2024 review of its rates, according to the filing.
Randazzo resigned in late 2020 when the $4.3 million payout became public. Former First Energy subsidiary Energy Harbor owns the reactors.
On Monday, the Ohio Consumer Counsel’s office released a copy of a 2013 contract between Randazzo and FirstEnergy, which accounted for another $2.1 million of the $22 million provided to Randazzo.
The contract was between FirstEnergy Service Company and the Sustainability Funding Alliance of Ohio, of which Randazzo was the sole employee. The contract had FirstEnergy paying Randazzo $300,000 in 2013, $300,000 in 2014, and $500,000 each in 2016, 2017 and 2018 to lobby for FirstEnergy. The contract also said FirstEnergy would pay Randazzo up to $1,750 a month for expenses.
FirstEnergy had been accused of funneling $60 million through two non-profit corporations to bribe former Ohio House Speaker Larry Householder (R) and four lobbyist and campaign allies to elect a slate of freshmen legislators who would then vote to make Householder speaker.
After that came to pass, Householder and his legislative allies wrote and shepherded a bill into law that would raise rates on all Ohio utility customers — regardless if they were FirstEnergy customers — to provide $150 million in annual subsidies to help the financially struggling Davis-Besse Nuclear Power Station in Oak Harbor and the Perry Nuclear Power Plant in Perry.
No one at FirstEnergy has been charged in this matter, although the corporation fired roughly a half dozen people who were allegedly involved in the affair, including former CEO Chuck Jones.
Householder and his four lobbyists and allies were charged in federal court with bribery. Householder and one are contesting the charges. Two have pleaded guilty, and one has committed suicide. The Ohio House stripped Householder of his speakership and later expelled him from the legislature.
