The Columbus Dispatch

Householde­r had plan B if opponents blocked HB6

Legislatio­n would have been broken up

- Jessie Balmert and Laura A. Bischoff

Former Ohio House Speaker Larry Householde­r wasn’t going to wait for Ohio voters to decide if they wanted to pay a fee on their electric bills to bail out two struggling nuclear plants.

Instead, Householde­r had a backup plan if opponents of the $1.3 billion nuclear bailout collected enough signatures to make the November 2020 ballot − despite a nasty, dark moneyfuele­d campaign to hinder them.

The Republican legislativ­e leader planned to divide House Bill 6 into pieces and pass each individual­ly, making it more difficult for opponents to challenge any one aspect, according to testimony in Householde­r’s federal trial last week in Cincinnati.

The strategy underscore­d Householde­r’s commitment to securing a bailout for Akron-based Firstenerg­y Solutions’ plants, even though the plan was deeply unpopular with Ohio voters.

“Polling shows the more we explain it, the worse it does,” Householde­r’s political strategist Jeff Longstreth told the speaker in June 2019.

And former Ohio Republican Party Chairman Matt Borges outlined the stakes in a call secretly recorded by the FBI: “If it makes the ballot, we’re dead.”

Householde­r and Borges are accused of participat­ing in a pay-to-play scheme to trade nearly $61 million in bribes from Firstenerg­y and its subsidiari­es in exchange for Householde­r’s return to power and the bailout for Ohio’s nuclear plants. Both have pleaded not guilty to racketeeri­ng conspiracy, a charge that carries up to 20 years in prison. Their federal trial is entering week five.

Ultimately, Householde­r never needed plan B.

A $40 million campaign, funded by Firstenerg­y and its allies through secretive nonprofits, quashed House Bill 6’s opposition with anti-china attack ads, private investigat­ors and money offers for signature collectors to leave Ohio. The anti-bailout effort failed in October 2019, falling short of the signatures needed to make the ballot.

Shortly after, Householde­r pushed a plan that would have changed Ohio’s term-limit requiremen­t for lawmakers and given him up to 16 more years in charge of the Ohio House. Once again, he turned to Firstenerg­y to foot the bill.

And the nuclear plants’ owner looked to sell the company, which went from hemorrhagi­ng money to guaranteed profits thanks to Householde­r’s House Bill 6. Executive chairman John Kiani aimed to make $100 million from the sale.

Why did Householde­r champion House Bill 6?

Federal prosecutor­s say Householde­r was laser-focused on passing the nuclear bailout in House Bill 6 because Firstenerg­y bribed him. In July 2021, Firstenerg­y admitted that it used money to influence Householde­r and another public official, former Public Utilities Commission of Ohio Chairman Sam Randazzo, and agreed to pay a $230 million penalty.

Randazzo has not been charged with any crimes and has said he did nothing wrong.

House Bill 6 was Householde­r’s No. 1 priority, witnesses testified. The Republican legislativ­e leader blocked a bill to legalize sports betting because its sponsor voted against the nuclear bailout. The political calculus was simple, lobbyist Neil Clark explained in a secretly recorded conversati­on: “If you’re not loyal, you’re disloyal.”

But Householde­r says he passed House Bill 6 to prevent the closure of the two nuclear plants, which would have devastated the local economy. He also wanted to limit Ohio’s reliance on energy generated in other states.

“Larry didn’t support House Bill 6 as part of some corrupt agreement with executives at Firstenerg­y,” Householde­r’s attorney Steven Bradley said during opening statements. “There were any number of reasons that he believed House Bill 6 was legislatio­n that benefited all of Ohioans, and that’s the only reason that he supported and advanced House Bill 6.”

But protecting House Bill 6 was also about preserving the power of the Gopcontrol­led Ohio Legislatur­e to set a course for the state, according to conversati­ons held at the exclusive Aubergine Private Dining Club in Grandview, near Columbus. Undercover FBI agents recorded the dinner while posing as commercial real estate investors lobbying to legalize sports betting.

“It is so important that they (House Bill 6 opponents) are not successful because when the Legislatur­e votes on something, it needs to stay law,” Householde­r said in the recording.

Ohio has a mechanism that allows voters to reject laws if they don’t like what their representa­tives approved. Called a referendum, the process was last used successful­ly to block the antiunion Senate Bill 5 in 2011.

But the referendum effort to block House Bill 6 failed, largely because of unpreceden­ted opposition bankrolled by Firstenerg­y Solutions. At the time, the nuclear plants’ owner was in bankruptcy. But that didn’t stop executives from spending extravagan­tly.

Executives from Firstenerg­y and Firstenerg­y Solutions aggressive­ly pushed for the nuclear bailout. When the bill passed the Ohio Legislatur­e, then-firstenerg­y CEO Chuck Jones shared a photoshopp­ed image of Mount Rushmore with the bill’s backers faces. The caption read: “HB 6 F*** ANYBODY WHO AINT US.”

“We have more money than they think,” then-firstenerg­y Solutions lobbyist Juan Cespedes wrote in a text message.

“Who would ever assume a bankrupt company is willing to spend $15M. What a joke? lol.”

After the effort to block House Bill 6 failed, the company’s executive chairman John Kiani planned to sell the nuclear plants − pocketing $100 million for himself and offering another $2 million to Cespedes for damage control, expecting that the sale would be deeply unpopular.

‘He was loyal to us’

Fresh off a victory on House Bill 6, Householde­r shifted his focus to a new plan that would have allowed him to remain speaker for up to 16 more years. Once again, it was bankrolled by Firstenerg­y and its allies through a dark money entity.

But the COVID-19 pandemic hit in March 2020, and the campaign ultimately fizzled.

Firstenerg­y gave $2 million to the cause even as Jones said that Householde­r was an “expensive friend.” Firstenerg­y Solutions executives were prepared to give $3 million to Householde­r’s effort in exchange for another four years of subsidies for the nuclear power plants, Cespedes testified.

“We had a lot of confidence in Speaker Householde­r,” Cespedes said. “He was loyal to us.”

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.

The USA TODAY Network Ohio bureau serves the Akron Beacon Journal, the Columbus Dispatch, the Cincinnati Enquirer and other network news organizati­ons across the state.

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 ?? JOHN MINCHILLO/AP ?? Former Ohio House Speaker Larry Householde­r had a backup plan if opponents blocked the nuclear bailout in House Bill 6.
JOHN MINCHILLO/AP Former Ohio House Speaker Larry Householde­r had a backup plan if opponents blocked the nuclear bailout in House Bill 6.

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