Free market groups want to end the "cronyism era" of Ohio’s energy market, which might help avoid a repeat of the House Bill 6 pay-for-play scandal that led to federal charges against the former state House speaker.
On Wednesday, Americans for Prosperity-Ohio (AFP-OH) released an energy policy report, “Best Energy Policy for Ohio,” developed in collaboration with The Buckeye Institute. The groups said the report is a primer for legislators and taxpayers.
It offered principles to guide energy policy reforms, including ending taxpayer-funded government subsidies, making the permitting process faster and more efficient, and promoting transparency and competition. It also recommended focusing on environmental policies that promote well-being, energy reliability and affordability and abundant energy, which is necessary for prosperity.
“The six principles outlined in this report provide a clear roadmap for the 136th General Assembly to pursue policies rooted in reliability, affordability, abundance, and transparency,” AFP-OH State Director Donovan O’Neil said in a statement. “We are confident this marks the beginning of the end for cronyist energy policymaking and the dawn of a consumer-centered energy future for all Ohioans.”
However, the main takeaway could be helping the state avoid repeating what’s commonly called the “largest bribery scheme in Ohio history,” spawned by the passage of House Bill 6.
“That is certainly the idea,” AFP-OH said in response to a question from Ohio.news. “Scandals like HB6 put a stain on our public institutions and cost Ohioans millions. This study is designed to help provide lawmakers with a foundation for good energy policy. Inside deal making and subsidies - both at the heart of cronyism - do not fit with the principles laid out.”
HB 6 was purportedly a ratepayer-funded bailout of two nuclear power plants. The move emerged after Akron-based FirstEnergy Solutions filed for bankruptcy in March 2018 and announced plans to close Davis-Besse Nuclear Power Station in Oak Harbor near Toledo and Perry Nuclear Power Plant in Perry.
Federal prosecutors eventually charged former Ohio House Speaker Larry Householder of Glenford and others. The feds said the former House speaker and his enterprise conspired to violate racketeering laws and received millions of dollars in bribes.
The conspirators leveraged 501(c)(4) entities’ lack of transparency to conceal their plan to accept nearly $61 million in bribes to pass and uphold the bailout. Under federal law, the names and addresses of 501(c)(4) contributors are not made available to the public.
According to federal documents, between March 2017 and March 2020, the enterprise exchanged millions of dollars in bribery campaign donations to help pass HB 6, which Gov. Mike DeWine signed into law in July 2019. Prosecutors also say the defendants worked to defeat a ballot initiative to overturn HB 6.
In March 2017, Householder began receiving quarterly payments of $250,000 from related energy companies into Generation Now’s bank account, which was his 501(c)(4). Householder’s team spent millions of dollars to support his House speaker bid and support candidates they thought would back him and for personal benefit.
Prosecutors said Householder spent more than $500,000 of the money “to pay off his credit card balances, repair his Florida home and settle a business lawsuit.”
In March 2023, a jury found Householder and former Ohio Republican Party chair Mathew Borges of Bexley guilty of participating in a racketeering conspiracy. In June 2023, a judge sentenced Householder to 20 years in federal prison.
He is incarcerated at the Federal Correctional Institution, Elkton, in Lisbon.
Jeffrey Longstreth of Columbus, Householder’s “longtime campaign and political strategist,” and Juan Cespedes of Columbus, a lobbyist, pleaded guilty in October 2020.
Despite throwing Householder in prison, the fallout from the scandal continues.
Last week, a federal grand jury indicted two former FirstEnergy executives — Charles E. Jones, 69, of Akron, and Michael Dowling, 60, of Massillon. Both were charged with participating in a racketeering conspiracy.
Following HB 6’s passage, Dowling wrote, according to a news release, " It was a huge bet, and we played it all right on the budget and HB 6—so we can go back for more!”
Last week, Columbus-based American Electric Power agreed to pay a $19 million fine to the Securities and Exchange Commission related to the HB 6 scandal.
According to an SEC filing, shortly after Householder’s arrest, AEP disseminated a press release regarding its relationship with Empowering Ohio and contributions to Generation Now. In the release, AEP said it did not contribute to Generation Now.
According to the SEC filing, AEP gave money to a group it founded called Empowering Ohio’s Economy Inc., which gave money to Generation Now.
