AEP Ohio fined millions for involvement in HB6 scandal

American Electric Power (AEP) has recently come to an agreement with the Securities and Exchange Commission (SEC), settling a federal investigation into its involvement in the House Bill 6 scandal in Ohio. The company will be paying a hefty fine of $19 million as a result of its contribution to the scandal, which saw the then-CEO of AEP assisting former Ohio House Speaker Larry Householder in reclaiming his position of power.

The scandal involved AEP providing financial backing to Householder’s political ambitions, including a $500,000 donation towards a plan to extend his term as the speaker. The scheme was arranged during a lunch meeting between AEP’s former CEO and Householder, which was a focal point in the SEC’s investigation.

AEP has been forthcoming about its cooperation with the SEC throughout the investigation, having received subpoenas in May 2021 and August 2022 related to House Bill 6. The bill aimed to secure a $1.3 billion bailout for the state’s nuclear power plants, among other provisions that would benefit certain energy companies, including AEP.

Although the nuclear plant bailout was eventually repealed, the scandal led to a wide-ranging criminal investigation resulting in charges against key figures involved, including Householder and former Ohio Republican Party Chairman Matt Borges. AEP itself has not faced criminal charges, but it has been implicated due to its financial contributions to Empowering Ohio’s Economy Inc., a group tied to the scandal.

Empowering Ohio’s Economy Inc. received funding from AEP, which was used to support Householder’s agenda. AEP’s control over Empowering Ohio’s spending was a point of contention in the SEC’s order, as it highlighted the company’s efforts to further its own interests through the group’s contributions. This included a substantial donation of $500,000 towards a new organization set up to advance Householder’s term-limit initiative.

In response to the SEC’s findings, AEP acknowledged that it violated federal securities laws with regard to its association with a “social welfare organization.” The company has expressed relief at the settlement and emphasized its commitment to moving past the scandal and refocusing on its core operations to better serve its customers.

As AEP navigates the fallout from its involvement in the House Bill 6 scandal, the company is focused on moving forward and ensuring compliance with federal regulations. With a new CEO on the horizon, AEP aims to put this chapter behind them and concentrate on enhancing the services they provide to their customers.