On November 19, the Ohio Public Utilities Commission (PUCO) issued a formal order against FirstEnergy’s Ohio utilities, mandating a total payment of $250.7 million. The order requires the company to refund $179.99 million to customers and to pay $70.71 million in civil forfeitures and penalties for misusing grid‑modernization fees collected between 2017 and 2019.
The $179.99 million refund represents the portion of the order that will be returned to customers who were charged for a distribution‑modernization rider that was never used for its intended purpose. The remaining $70.71 million is divided among several civil forfeitures—$21.78 million, $18.93 million, and $23.36 million for separate violations—and a $7.02 million penalty for failing to properly direct the fees. This detailed breakdown corrects the earlier misstatement that the company owed $180 million in penalties alone.
The order is the latest consequence of the House Bill 6 scandal, in which FirstEnergy’s unregulated affiliate was found to have used customer‑collected funds to support a $1 billion nuclear plant bailout. The Ohio Supreme Court had previously ruled the distribution‑modernization rider an “illegal blank check” because it lacked conditions to ensure the funds were used for grid upgrades. The PUCO order also cites violations of Ohio’s corporate‑separation laws, adding further regulatory scrutiny to FirstEnergy’s operations.
Financially, the $250.7 million hit will reduce FirstEnergy’s cash reserves and could affect its capital allocation plans. The company had announced a $7.3 billion investment in Ohio’s transmission and distribution infrastructure through 2029; the penalty may require re‑prioritization of those capital projects. Additionally, the utilities will undergo a corporate‑separation audit over the next three years, which could impose further costs and operational adjustments.
FirstEnergy’s spokesperson said the order “closes a chapter tied to activities that do not represent the company we are today” and reaffirmed its commitment to accountability, transparency, and rebuilding trust. PUCO Chair Jenifer French emphasized that the penalties serve as a cautionary lesson of accountability and honesty in utility regulatory matters, underscoring the commission’s resolve to enforce state law and protect consumer interests.
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