Prosecutors: Firstenergy swayed bailout
Householder in frequent contact with the CEO
Federal prosecutors are painting a picture of how former Ohio Speaker of the House Larry Householder championed a $1.3 billion bailout for two nuclear plants owned by Firstenergy Solutions − after the Akron-based company dumped millions into his political aspirations.
Householder was in frequent contact with Firstenergy CEO Chuck Jones as the nuclear bailout in House Bill 6 passed the Ohio Legislature and once consoled a “despondent” Firstenergy Solutions Chairman John Kiani, assuring him the bill would pass.
Firstenergy’s fingerprints were all over House Bill 6.
● Firstenergy lobbyists crafted language for an “Ohio Clean Air Credit Program” in December 2018 − four months before two Householder-backed lawmakers introduced House Bill 6 to create a similarly named program.
● Firstenergy CEO Jones asked Lt. Gov. Jon Husted to advocate for more money for the nuclear plants as the bill worked its way through the Ohio Senate. Householder texted Jones: “He’s not a legislator.” Jones replied: “I know but he said Senate leaders would listen. He didn’t deliver.”
● Jones also asked Householder to increase the money for nuclear plants by extending the bailout to 10 years rather than six. “Ugh, that would add $600 million,” Householder replied.
● Jones texted Householder as the House passed House Bill 6: “Leadership matters. Ryan Smith is a (expletive) and embarrassing himself.”
● Householder texted Jones on June 23, 2019, saying Gov. Mike Dewine should be more vocal in his support for House Bill 6. “DEW should use the situation to LEAD,” Householder said. “I will work on it,” Jones responded.
● Jones told Householder on July 16, 2019 that his team was pushing Dewine to call then-senate President Larry Obhof on House Bill 6.
Meanwhile, Householder worked to pass House Bill 6. Householder created a new energy generation committee that would review the nuclear bailout bill and picked its members. Many of the committee’s members were Republican
candidates who Householder supported financially for the 2018 election and who backed Householder for speaker.
Householder says he had legitimate reasons to push for House Bill 6, such as saving jobs at the nuclear plants and keeping energy production in Ohio.
Householder and ex-ohio Republican Party Chairman Matt Borges are charged with racketeering conspiracy in an alleged scheme to trade nearly $61 million to elect Householder as House speaker, pass House Bill 6 and defend it against a referendum to block it.
Both Householder and Borges have pleaded not guilty and say they did nothing wrong.
House Bill 6 was fast-tracked through the Ohio Legislature, moving quickly at a time when lawmakers were also focused on the two-year budget.
On the day House Bill 6 first passed the Ohio House of Representatives, Householder and about a dozen lawmakers who voted “yes” on the bill celebrated with energy lobbyists at Mitchell’s Steakhouse in downtown Columbus.
When the count for the final House Bill 6 vote looked tight, Householder needed every “yes” vote in the chamber but several lawmakers were at an event in Chicago.
“The state plane has been arranged to come get you, Tom Brinkman and Bob Cupp on Tuesday morning at Midway and return you to Chicago that afternoon. Jay Edwards will be calling you,” Householder said in a text message sent on July 21, 2019. The recipient was not identified in court, but the Columbus Dispatch reported the third lawmaker was Rep. Jim Butler, R-oakwood.
Dewine’s then-chief of staff Laurel Dawson approved the expense.
“(Firstenergy consultant) Mike Dawson’s wife. Boom,” Firstenergy’s Mike Dowling wrote. Media reported about the plane. Dawson, who worked as a Firstenergy consultant, emailed a news article about the plane arrangement to Dowling, records show. Ultimately, the plane was not dispatched.
Judge doesn’t allow photo of Ohio Statehouse superimposed with Firstenergy Stadium
Firstenergy executives and lobbyists passed around a photo of the Ohio Statehouse with the Firstenergy Stadium logo superimposed over top on the day the $1.3 billion bailout bill won approval.
Attorneys for Householder objected to prosecutors being allowed to use the image as evidence.
“It shows a recognition that Firstenergy had control over the statehouse,” said Assistant U.S. Attorney Matthew Singer. The image was exchanged between then executives Jones and Dowling and shared by Dawson via Twitter with Dowling and other energy lobbyists, he said.
U.S. District Court Judge Timothy S. Black punted on whether the image could be shown to jurors, saying he needed more context. “I don’t want the image shown today.”
USA TODAY Network Ohio bureau reporters Jessie Balmert and Laura Bischoff have been following the House Bill 6 scandal since the story broke. They will continue to follow developments and the trial. Follow them on Twitter at @lbischoff and @jbalmert for updates.
Details emerge on the plan to use the state plane