Morning Briefing - October 05, 2020
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October 05, 2020

Judge Strikes Down Ohio AG Lawsuit, Allowing FirstEnergy to Keep Lobbying

By ExchangeMonitor

FirstEnergy Corp. and Energy Harbor can continue lobbying the Ohio legislature while lawmakers decide what to do with a controversial nuclear bail-out bill before it goes into effect in January, a judge ruled Friday, striking down a lawsuit filed by Attorney General David Yost.

The judge said a ban on political spending would be a violation of the companies’ First Amendment rights. Yost’s suit sought a preliminary injunction against the companies allegedly involved with passing House Bill 6, which former House Speaker Larry Householder helped push through the legislature in order to bail out two of the state’s then-bankrupt nuclear plants, according to a criminal indictment against the politician. 

Many lawmakers across the state support the idea of repealing the bill, which will increase utility fees for all ratepayers by at least $0.85 starting in January. By now, the deadline to greenlight legislation repealing the bill has passed. It is unclear whether the legislature will be able to repeal or modify the bill before the end of the session. 

In a statement filed Friday, Yost said he was disappointed with the ruling, but called the suit a “preliminary round”, adding “there’s a lot more yet to go.”

“As the Judge noted from the bench, it would be foolish for anyone to accept campaign contributions from these defendants — or, I might add, to engage in private discussions with these defendants or their lobbyists,” Yost said. “Anything they have to say — and there is much for them to say — should be said in public, where the people’s business ought to be conducted.”

The judge still has to rule on whether Energy Harbor, the owner of the two plants posed to benefit from HB6, should receive any of the $1.3 billion collected through the rate increase.

 

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