FirstEnergy’s Ohio utilities to pay restitution to customers as part of House Bill 6 investigation settlement

FirstEnergy’s Ohio utilities will pay $249 million in restitution to customers as part of a settlement in the FirstEnergy/House Bill 6 investigation.

The Public Utilities Commission of Ohio announced the settlement agreement in a Jan. 7 press release.

“This order brings finality to these four cases and most importantly returns these dollars to the FirstEnergy customers,” PUCO Chair Jenifer French said in the release.

As part of the deal, the Cleveland Electric Illuminating Company, Ohio Edison Company, and The Toledo Edison Company will pay customers over three billing periods in restitution for enacting ratepayer-funded subsidies.

The companies will also give an additional $20 million to fund low-income programs.

The new settlement is based on orders from the PUCO that found First Energy in violation of Ohio Law and PUCO orders and regulations in November 2025. It builds on the original orders “by increasing the amount of monetary restitution to customers instead of assessing civil forfeitures,” according to the press release.

The charges resulted from the parent company, FirstEnergy Corp., paying more than $60 million in bribes through a dark money group to former House Speaker Larry Householder, R-Glenford, and former PUCO chairman Sam Randazzo, as well as other officials, to pass House Bill 6 and avoid a public referendum to repeal the bill in 2019.

House Bill 6 created a $1 billion bailout for FirstEnergy-owned power plants that was funded by adding additional fees to utility customers’ bills, Ohio.news previously reported.

The companies will also refund $6.6 million plus approximately $6.2 million in interest for improper charges and pay $5 million in restitution to the Retail Energy Supply Association for violations of corporate separation regulations.

“We appreciate the dedication and collaboration shown by all parties and are grateful for the collective effort that led to an agreement that provides even more dollars to our Ohio customers,” FirstEnergy Ohio President Torrence Hinton said in a statement, WTOL reported. “With these matters reaching resolution, we’re moving ahead with a clear focus on operating with transparency, delivering reliable service and investing in Ohio communities.”

FirstEnergy’s former CEO, Chuck Jones, and former SVP, Michael Dowling, were indicted and charged with participating in a racketeering conspiracy by a Federal grand jury in January 2025.  Both have pleaded not guilty and are currently still awaiting trial.

Householder was convicted of bribery and racketeering by a Federal court and sentenced to 20 years in prison in 2023.  His motion to dismiss state charges was denied, and he will be tried in an Ohio court on June 8.

“Larry Householder is going to face state criminal charges and a jury,” Attorney General Dave Yost said in a post to X. “His motion to dismiss was denied by the Court.

“A federal pardon will not reach these state charges if he is convicted,” Yost added.

Larry Householder is going to face state criminal charges and a jury. His motion to dismiss was denied by the Court.

A federal pardon will not reach these state charges if he is convicted.

— Dave Yost (@DaveYostOH) January 8, 2026

Former Ohio Republican Party chairman Matt Borges was convicted alongside Householder in 2023 and sentenced to five years in prison.

The portions of House Bill 6 that created ratepayer-funded subsidies were repealed in May 2025 by the passage of House Bill 15.