In a state where electricity is a vital artery for families and businesses, the utility giant FirstEnergy has once again found itself in the eye of the storm. Just days after Governor Mike DeWine signed H.B. 15, a bill repealing scandal-ridden subsidies for unprofitable coal-fired power plants, the company filed an application with the Ohio Public Utility Commission (PUCO) seeking a $190 million rate increase. This move, which could add up to $13 per month to consumer bills, sparked outrage in a state still reeling from one of the largest corruption scandals in Ohio history. While residents hoped for relief, FirstEnergy appears to be trying to shift the weight of its past sins onto the shoulders of payers.
Corruption that changed Ohio
Six years ago, FBI whistleblower Tyler Ferman uncovered a scheme that shook Ohio’s political landscape. In 2019, then-House Speaker Larry Householder received $61 million in bribes from FirstEnergy in exchange for passing H.B. 6 — a legislative act that guaranteed the company $1 billion in state subsidies at taxpayers’ expense. This law, supporting unprofitable coal plants operated by Ohio Valley Electric Corporation (OVEC), became a symbol of corruption when, in 2023, Householder was sentenced to 20 years in prison, and his accomplice, former Republican leader Matt Borches, received five. In a video that became key evidence, Borches threatened Ferman to "blow up" his house if he revealed the attempted bribery of $15,000.
OVEC subsidies, which cost consumers $200 million in 2024 alone, funded plants that lost over $100 million in the same period. “It was like paying for an empty promise,” says Ferman, whose voice carries a mix of fatigue and resolve. H.B. 15, signed by DeWine on May 16, 2025, abolished these payments, promising to save consumers between $1.30 and $1.50 per month. But the joy of this relief was overshadowed by a new blow: FirstEnergy’s proposal for a sharp rate hike.
The cost of scandal: Who pays?
FirstEnergy, whose subsidiaries — Ohio Edison, Cleveland Illuminating Company, and Toledo Edison — serve millions across Ohio, claims that the $190 million increase is necessary for grid modernization. But the Ohio Consumers’ Counsel (OCC) sharply criticizes this plan. “Instead of raising rates by $190 million, FirstEnergy should cut costs,” says OCC Director Maureen Willis. “Consumers are already burdened by soaring electricity and transmission prices.” According to OCC estimates, Cleveland Illuminating customers will face a $13 monthly increase, Ohio Edison — $3, and Toledo Edison — $1.50.
This move is seen as audacious, especially given FirstEnergy’s history. In 2021, the company acknowledged that its former leaders, Chuck Jones and Michael Dowling, paid $4.3 million in bribes to former PUCO chair Sam Randazzo to avoid a rate review that could lower rates. Randazzo, who took his own life in 2024, never appeared in court, but Jones and Dowling still face corruption charges. “They call it ‘fixing Ohio’s hole,’” says a source close to the investigation. “But now, that hole is in consumers’ pockets.”
Rural communities and the economic paradox
The repeal of OVEC subsidies, though welcomed by many, has raised concerns in rural areas where coal plants provide jobs. Lawyer Scott Pullins, representing southern Ohio communities, warns that closing these plants could devastate the region’s economy. “These plants are taxes for schools, well-paying jobs,” he says. “Without them, these communities will lose their economic anchor.” But Pullins admits that the rate hike promoted by FirstEnergy might hit these same communities even harder, where many families already struggle with high living costs.
PUCO, which must decide on the rate increase by the end of 2025, is under pressure. Insider sources say the commission is divided: some members favor approving a partial increase to support network investments, while others, remembering the H.B. 6 scandal, demand a strict audit of FirstEnergy’s expenses. “The company wants us to believe these funds will go toward modernization,” says a PUCO source. “But after years of deception, trust in them is at zero.”
Consumers trapped
For Ohio residents like Michael McLain, a retiree from Akron, the new rates are yet another blow to their wallets. “I barely manage with current bills,” he says, holding a bill where the hidden OVEC subsidy is masked as “Legacy Generation Resource Rider.” “They say they will eliminate subsidies, but immediately raise prices. Where is the justice?” McLain, who has followed the H.B. 6 scandal for years, feels consumers remain pawns in the game of big corporations and politicians.
Governor DeWine, by signing H.B. 15, avoided taking a direct stance on the rate hike, shifting responsibility to PUCO. “That’s their decision,” he stated on May 19, drawing criticism from activists like Ferman. “It’s outrageous,” says the whistleblower. “After everything FirstEnergy has done, they still dare to ask for more when people are barely getting by.”
The path forward: Transparency or new scandals?
The situation with FirstEnergy exposes deeper issues in Ohio's energy policy. Deregulation introduced in 2001 promised competition and lower prices, but instead, consumers faced tariff volatility and corporate manipulation. PUCO urges customers to compare provider offers on Energy Choice Ohio’s website, but for many, like McLain, that’s just added complexity. “I don’t want to be an energy expert,” he says. “I just want a fair price.”
While Ohio attempts to rectify the mistakes of H.B. 6, the battle over FirstEnergy’s rates will be a test for the state. Can PUCO restore trust by insisting on transparency? Will communities dependent on coal plants receive support for transitioning to new economic realities? And will consumers finally get relief, rather than another burden? The answers to these questions will determine not only FirstEnergy’s future but also whether Ohio can regain its reputation as a state where citizen interests trump corporate greed.
