HB 6 Updates: FirstEnergy Fights for Riders and Rate Hike in Ohio
FirstEnergy is in the spotlight again with ongoing updates related to Ohio’s utility corruption scandal involving House Bill 6, the nuclear and coal bailout law at the center of a major controversy. One of the latest developments involves FirstEnergy’s attempt to switch from its current rider package to a plan from 2016, sparking criticism over alleged secret deals associated with the older plan.
In regulatory cases tied to HB 6, some witnesses are refusing to answer questions by pleading the Fifth Amendment. The Ohio Attorney General has taken action to prevent the statute’s effects on certain testimonies. Additionally, lawyers for former FirstEnergy executives are arguing that the company shouldn’t be considered a victim in the state’s criminal case against them.
AEP, another major player in the energy sector, has set aside $19 million to potentially settle claims brought by the Securities and Exchange Commission.
FirstEnergy’s desire to switch to the 2016 plan involves objections to changes made by the Public Utilities Commission of Ohio earlier this year. The company believes they have the authority to approve riders through an electric security plan, rather than through a base rate case. This dynamic highlights an ongoing issue in Ohio’s regulation of electric utilities, where utilities can withdraw applications and revert to previous plans, giving them more control over charges.
Critics argue that reinstating the old plan is problematic due to alleged secret side deals, including one involving former PUCO chair Sam Randazzo and FirstEnergy. Despite past blockages in fact-finding processes, recent developments indicate progress in uncovering more details about these arrangements.
Consumer advocacy groups have expressed concerns about this reversal to a potentially tainted electric plan and have filed objections. The fallout from the scandal continues to raise questions about accountability and transparency in Ohio’s energy sector.
