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OCC’s Five-Year Fight Pays Off: 

PUCO Imposes $250M Penalty on FirstEnergy in HB 6 Scandal

OCC’s Five-Year Fight Pays Off: PUCO Imposes $250M Penalty on FirstEnergy in HB 6 Scandal
 

After five years and countless filings by the Office of the Ohio Consumers’ Counsel (OCC) and others advocating for FirstEnergy consumers in the wake of the scandal, the Public Utilities Commission of Ohio (PUCO) issued a decision on Nov. 19, 2025, that was a win for consumers!

In two separate orders, the Commission found that FirstEnergy’s Ohio utilities (Cleveland Electric Illuminating Company, Ohio Edison and Toledo Edison) violated not only Ohio law, but also PUCO regulations and orders. The PUCO ordered FirstEnergy to pay a combined $250.7 million in customer restitution and civil forfeitures.

A Long Road to Justice

OCC first opposed HB 6 long before it was passed and signed into law by Governor DeWine in July 2019. Since its passage, the HB 6 scandal has become known as U.S. Attorney David DeVillers described it—the “largest bribery, money laundering scheme ever perpetrated against the people of the state of Ohio.”

After former Ohio House Speaker Householder was indicted in July 2020 and before Chair Randazzo resigned from the PUCO in Nov. 2020, OCC asked the PUCO to conduct an investigation and management audit of FirstEnergy’s activities surrounding HB 6.

On Sept. 8, 2020, OCC filed motions requesting the PUCO investigate to determine if, among other things, Ohio consumers unknowingly paid for the $61 million bribery scheme.  

OCC believed consumers deserved answers and stood firm continuing to seek justice for them despite the PUCO placing an 18-month stay on four FirstEnergy HB 6 investigation cases.

“This pattern of violations contributed to the conduct giving rise to the HB 6 scandal.”
— PUCO Commissioners

Once the stay was lifted in Feb. 2024, OCC subpoenaed and deposed key players in the scandal to get to the truth for consumers. This took time since two FirstEnergy lobbyists,  Joel Bailey and Justin Biltz, attempted to avoid answering questions under oath and then invoked their Fifth Amendment rights, which forced OCC to request the PUCO Commissioners compel their participation.

With unwavering persistence OCC compelled testimony from not only those lobbyists and another lobbyist, Ty Pine, but also former FirstEnergy executives Dennis Chack, Steven Strah and Robert Reffner.

In Nov. 2025, the Ohio Attorney General’s office asked the PUCO, to which OCC agreed, not to compel deposition testimony from former FirstEnergy executive Eileen Mikkelson, noting there were “reservations” about any grant of automatic immunity to her.

To read more about HB 6 including timelines of events, see OCC’s Annual Reports.

What the Rulings Mean for Consumers

Restitution Payments 

Nearly $187M will be returned to FirstEnergy customers. 

  • Almost $180 million in penalties for improper use of funds collected through PUCO-approved Distribution Modernization Rider (DMR) will be credited to consumers in three monthly billing cycles.
  • FirstEnergy must refund an additional $6.64 million plus interest for certain transactions billed to consumers where a 2021 PUCO audit showed it either misallocated or lacked supporting documentation.

The amounts for restitution payments were to be filed with the PUCO by Nov. 26, 2025, and would begin being issued to consumers in the following billing cycle.

Civil Forfeitures 

FirstEnergy must also pay at least $64 million in civil penalties to Ohio’s General Revenue Fund for several violations. 

  • $21.78 million due to violating Ohio’s corporate separation laws by entering into a consulting agreement with Sustainability Funding Alliance in 2013. FirstEnergy’s regulated utility allocated costs to benefit its unregulated generation affiliate, Energy Harbor.
  • $18.93 million due to violating disclosure laws for failing to produce a side agreement with Industrial Energy Users-Ohio (now Ohio Energy Leadership Council) during a 2015 PUCO proceeding.
  • $23.36 million due to violating seven areas identified by a PUCO 2021 corporate separation audit. The PUCO cited the lack of separation between regulated and unregulated affiliates, the lack of a chief compliance officer, and missing information in a cost allocation manual. FirstEnergy is also subject to a corporate separation audit in the next three years.

What’s Next?

Although OCC commends the PUCO’s decisions on behalf of consumers, it is just a start. A $250 million penalty is significant, but OCC had recommended $544 million in penalties, including about $467M in customer refunds to reflect interest. Ohioans should never be made to pay for corporate misconduct and OCC will remain engaged, continue monitoring FirstEnergy’s compliance, and urge reforms to prevent future abuses.

Moving forward, your engagement matters too! 

Learn More: 

OCC’s Original Motion for investigation of FirstEnergy in Connection with House Bill 6: 

PUCO Investigation Decisions: 

Investigations of HB 6/FirstEnergy scandal at the PUCO:

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