Firstenergy discloses 2021 corporate spending as part of federal deal
Akron-based Firstenergy, which recently admitted that it illegally bribed Ohio public officials, spent little trying to influence public policy in 2021, according to corporate contributions disclosed Friday as part of a deal with federal prosecutors.
In July, Firstenergy admitted to bribing former Ohio House Speaker Householder and former Public Utilities Commission of Ohio Chairman Sam Randazzo to pass a $1 billion bailout for two nuclear plants then-owned by Firstenergy Solutions and ward off a rate case in 2024. Both men have said they did nothing illegal.
Firstenergy entered into a deferred prosecution agreement with federal prosecutors to avoid a trial and possible conviction. As part of the deal, Firstenergy will pay a $230 million fine and disclose any dark money donations, starting in 2021 and continuing quarterly for three years.
Dark money was central to Firstenergy’s efforts because the donations were not disclosed, federal prosecutors said. But the deal does not require Firstenergy to disclose spending during the peak of its dark money contributions.
On Friday, Firstenergy disclosed $2.2 million paid to nonprofits and groups benefitting public officials during the first half of 2021. Both the sum and the scope were significantly lower than Firstenergy’s past corporate contributions, which were the subject of the federal pay-to-play investigation.
During the first half of 2021, Firstenergy spent $79,500 on consulting and government relations. Vendors included Resolute Strategies LLC led by former New Jersey utility regulator Richard Mroz, and Minardi Public Affairs LLC led by West Virginia lobbyist Sam Minardi.
Firstenergy’s political spending has dropped off dramatically. In February, company leaders announced that Firstenergy, which operates three electric utilities in northern and central Ohio, would stop donating to nonprofits and for-profit organizations that are not required to disclose their donors – often called dark money.
Few politicians were cashing the company’s checks anyway amid the cloud of a federal pay-to-play investigation.
The largest contribution disclosed was nearly $2.1 million paid to grid operator MISO, which is a 501(c)(4) nonprofit. The payment to Midcontinent Independent System Operator, which operates the power grid across 15 states and a Canadian province, was required by a federal utility regulator.
Past dark money spending isn’t disclosed
The deferred prosecution agreement does not require Firstenergy to detail dark money donations prior to 2021. Those details might have revealed how Firstenergy donated to other politicians in Ohio.
For example, Firstenergy donated to dark money groups backing Gov. Mike Dewine and his daughter’s county prosecutor bid in 2019. The company gave $2 million to Householder’s effort to extend term limits for Ohio lawmakers in March 2020. Neither would be disclosed under the deferred prosecution agreement.
But Vipal Patel, acting U.S. attorney for the Southern District of Ohio, said in July that earlier years were excluded as a part of negotiations.
“There’s a lot of things that could be in the agreement, and it’s a negotiated resolution,” Patel said. “We want their culture to change.”
Jessie Balmert is a reporter for the USA TODAY Network Ohio Bureau, which serves the Akron Beacon Journal, Cincinnati Enquirer, Columbus Dispatch and 18 other organizations.