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Tag: Jon Husted

  • Ohio’s HB 6 utility scandal gets true-crime treatment in HBO film

    Ohio’s HB 6 utility scandal gets true-crime treatment in HBO film

    Former Ohio House Speaker Larry Householder gives the thumbs up as he enters a federal courthouse in Cincinnati. (Photo from WEWS.)

    By:  and  – Ohio Capital Journal

    This story was originally published by Canary Media.

    One of the largest utility scandals in U.S. history has remained largely unknown outside Ohio — until now.

    Last week, HBO released a documentary that covers the long, sordid saga, which led to the federal criminal convictions of a former speaker of the Ohio House of Representatives and a former head of the Ohio Republican Party.

    “The Dark Money Game: Ohio Confidential” follows the story of how utility companies used roughly $60 million in bribes to public officials to secure more than $1.5 billion in ratepayer subsidies for aging, uneconomical coal and nuclear plants.

    Canary Media contributing reporter Kathiann Kowalski has spent more than a decade covering the House Bill 6 saga and Ohio utilities’ other efforts to get ratepayer-funded bailouts. Dan Haugen, a senior editor at Canary Media, recently spoke with Kowalski about her reactions to the new film.

    The following transcript has been edited slightly for length and clarity.

    Haugen: So, you watched this new HBO documentary ​“Ohio Confidential” the other day. What about it is still on your mind today? 

    Kowalski: I was struck by the focus they used of how dark money and gerrymandering undermined voters’ will in the wake of a 2010 Supreme Court case that opened the door for unlimited corporate spending on political campaigns, subject to few conditions.

    Haugen: Was there any factual information that wasn’t previously reported by you or others?

    Kowalski: A lot of it was very familiar, given the fact that I had read through most of the exhibits, read Neil Clark’s book, gone to part of the trial, and been following this for years. There was an interesting scene where they were able to get footage of the FBI observing a private detective that former Ohio GOP Chair Matt Borges and company had apparently retained to follow Tyler Fehrman, who was a witness in the federal criminal case.

    Haugen: Did the film change your understanding of the HB 6 story in any way? 

    Kowalski: They did a decent job connecting some dots. I had not thought through how former Ohio House Speaker Larry Householder’s actions also enabled a far-right coalition in the Legislature to push through an anti-abortion law in 2019. It gave me a broader perspective on the anti-democracy angle of the public corruption, but my understanding of the basic story did not change.

    Haugen: Where did the abortion legislation appear on the timeline?

    Kowalski: The way that the filmmaker presents it is that once Householder helped these people get the anti-abortion legislation passed, he then had people who felt they owed him something. I looked at the timing, and Gov. Mike DeWine signed the anti-abortion legislation the day before House Bill 6 was introduced.

    Haugen: One of the biggest unknowns still today is what, if any, role the governor’s office had in all this. You and others have reported on a December 2018 dinner with FirstEnergy executives, DeWine, and Jon Husted, just weeks before the latter two took office as governor and lieutenant governor. Neither has been charged nor accused of any wrongdoing. Does the film shed any new light on their connections?

    Kowalski: The filmmakers include an allegation of $5 million going from FirstEnergy to help elect DeWine. And they note a disclaimer from DeWine’s office that it was all within the confines of what was allowed under the law. That’s basically about all they did. It was not a deep dive into the governor’s actions or Husted, who was recently appointed to fill Vice President JD Vance’s U.S. Senate seat. I think maybe they wanted to keep their story tightly focused on the legislature and what has been proven in the first federal criminal case. That also avoids having to include more disclaimers about how nothing’s been proven against others, everybody denies wrongdoing, etc., etc.

    Haugen: So is this something you would recommend that your readers watch? 

    Kowalski: Yes. It’s compelling storytelling. It does a good job of explaining things in plain terms. There’s a limited cast of characters, and you can follow the story. If House Bill 6 is new to you, it’s definitely worth watching. And it’s certainly important now as we’re looking at not only the continued use of dark money in politics through either nonprofits or limited liability corporations, but also, with technology, likely more ways to cover up potential bribes. So, yes, people should be aware of this.

    ________________

    Kathiann M. Kowalski, Canary Media
    Kathiann M. Kowalski, Canary Media

    Kathiann M. Kowalski is a contributing reporter at Canary Media who covers Ohio. She reports on energy, science, and policy issues and is the author of 25 books. In addition to her journalism career, Kathi is an alumna of Harvard Law School and has spent 15 years practicing law. She is a member of the Society of Environmental Journalists, the National Association of Science Writers, and the Society of Professional Journalists.

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    Dan Haugen, Canary Media
    Dan Haugen, Canary Media

    Dan Haugen is a senior editor at Canary Media. He joined Canary Media as part of its 2025 merger with the Energy News Network, where he was managing editor and oversaw state and local reporting on clean energy policy. He previously worked as a newspaper reporter, freelance writer, and watchdog editor at a Gannett-owned newsroom in South Dakota. He currently lives with his wife and two kids in Minneapolis, where he enjoys reading books, collecting vinyl, and watching baseball.

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  • DeWine says Randazzo’s ties to First Energy were well known, but the evidence of this is lacking

    DeWine says Randazzo’s ties to First Energy were well known, but the evidence of this is lacking

    BY:  – Ohio Capital Journal

    The office of Gov. Mike DeWine has for months been saying that connections between the guy he picked to be the state’s top regulator and a utility at the center of an epic bribery scandal were well known around Capitol Square when DeWine nominated him in January 2019.

    If the relationship were common knowledge, it might seem more innocent that some in DeWine’s administration knew the utility had paid the regulator $4.3 million just before the governor nominated him. However, the administration has provided scant evidence that the claim is true — and there’s considerable evidence suggesting it isn’t.

    The regulator, Sam Randazzo, died by suicide earlier this month and the utility, Akron-based FirstEnergy, has admitted to its role in a scandal that has sent one public official to prison for 20 years and seen yet another defendant die by suicide.

    Meanwhile, DeWine’s lieutenant governor, Jon Husted, won’t talk about a $1 million FirstEnergy contribution to a group supporting him. And DeWine himself hasn’t explained what senior people in his administration with FirstEnergy connections knew about the scheme — in which $61 million in bribes were paid for a $1.3 billion ratepayer bailout.

    Multiple ties

    Among them is Laurel Dawson, who was chief of staff of the incoming DeWine administration at the beginning of 2019. At the same time, her husband, Mike Dawson, was a lobbyist for FirstEnergy.

    A few weeks before, on Dec. 18, 2018, Gov.-elect DeWine and Lt. Gov.-elect Jon Husted had dinner at the Columbus Athletic Club with FirstEnergy CEO Chuck Jones and Vice President Micheal Dowling. At the dinner, they discussed whether Randazzo would be acceptable to head up the Public Utilities Commission of Ohio — the agency that was supposed to regulate the executives’ utility, according to a state indictment of Randazzo, Jones, and Dowling that was filed in February.

    After the dinner, the FirstEnergy executives drove about a mile to Randazzo’s condo and negotiated a $4.3 million payment to Randazzo, the indictment said. FirstEnergy later said the payment was a bribe in a deferred prosecution agreement with the U.S. Justice Department.

    As PUCO chairman, Randazzo helped draft and lobby for the bailout law and did several other lucrative favors for FirstEnergy. His indictment said it capped off a decade-long relationship in which he was a paid “consultant” for FirstEnergy unbeknownst to his law firm or a group of industrial energy users on whose behalf Randazzo was supposed to be negotiating concessions.

    The indictment says at least one person in the DeWine administration — Laurel Dawson — knew that Randazzo had gotten a huge payment from FirstEnergy in the weeks before DeWine nominated him to chair the PUCO at the beginning of February 2019.

    Randazzo told “the Governor-elect through his incoming Chief of Staff that he had received $4.3 million from FirstEnergy, which he claimed was final payment of a ‘consulting agreement,’” Randazzo’s indictment said.

    For her part, Laurel Dawson is cooperating with the state prosecution, but she isn’t commenting publicly.

    Common knowledge?

    In the months since the state indictment of Randazzo and the FirstEnergy executives, DeWine Press Secretary Dan Tierney has been saying that Randazzo’s ties to FirstEnergy weren’t news even at the time the governor was considering him in early 2019 to head the PUCO.

    In February, he told Cleveland’s News Channel 5, “it was well known that Randazzo was a paid consultant for FirstEnergy.”

    Tierney modified that somewhat, telling the Capital Journal earlier this month, “it was well known to our staff that Mr. Randazzo was an energy consultant, and it was well-known to them and many people that Mr. Randazzo was a consultant employed by First Energy.”

    However, it appears that Randazzo and FirstEnergy’s top leadership went to great lengths to keep their relationship secret.

    Many of the counts Randazzo was charged with have to do with his failure to report income from FirstEnergy on state ethics disclosures while he was PUCO chairman. A bill of particulars accompanying the indictment adds that Randazzo didn’t disclose a 2015 consulting agreement with FirstEnergy to the members of his own law firm, McNees, Wallace and Nurick. Randazzo’s membership agreement in the firm barred barred him from outside employment, the filing said.

    Pressed on the matter this week, Tierney said in an email, “Mr. Randazzo testified numerous times at the General Assembly prior to his appointment to the PUCO. In addition, Mr. Randazzo served on the PUCO Nominating Council, which requires ethics disclosures. These were among the reasons Mr. Randazzo’s relationships with utilities and FirstEnergy were well known at the Statehouse and on Capitol Square.”

    The Capital Journal obtained Randazzo’s disclosures from the Ohio Ethics Commission for the period he served on the PUCO Nominating Council — 2007 to 2017. “FirstEnergy” doesn’t appear on any of them.

    Tierney was informed of that and asked whether DeWine’s office could point to any testimony Randazzo gave to the General Assembly in which he divulged his long, profitable relationship with FirstEnergy. Tierney didn’t answer that question, saying instead, “My understanding is that Mr. Randazzo’s business entities are listed on the ethics form(s), and those business entities not only were well known to be associated with Mr. Randazzo on Capitol Square, but also well known to have First Energy as clients.”

    Shell game

    The entity that appears on Randazzo’s ethics disclosures is the Sustainability Funding Alliance of Ohio — a group prosecutors accused Randazzo of using as a shell corporation to skim millions in FirstEnergy money earmarked for his industrial clients. The group’s relationship with FirstEnergy was so secret that the corporation’s top executives feared that a partial disclosure would tank Randazzo’s nomination to the PUCO.

    FirstEnergy Solutions — a subsidiary Jones and Dowling desperately wanted ratepayers to bail out — was going through bankruptcy. One of its filings mentioned the Sustainability Funding Alliance, which Randazzo had also listed on his ethics disclosures.

    The FirstEnergy executives were in a panic about it and their communications show that the connection between their company and Randazzo’s entity was far from well known.

    The DeWine administration is “going to be mad at Sam (and hopefully not us) for not disclosing the financial relationship,” Dowling texted Jones on Jan. 30, 2019, less than a week before DeWine nominated Randazzo. “That’s Sam’s responsibility.”

    When the nomination went through anyway, Dowling told Jones, “A bullet grazed temple,” to which the FirstEnergy CEO replied, “Forced DeWine/Husted to perform battlefield triage.”

    “Secret for-profit entity”

    In his email Monday, Tierney also said, “What media has described as the ‘dossier’ regarding Randazzo’s relationship with First Energy, which is a collection of public domain documents from the time in 2019, shows that much of this was colloquially known on Capitol Square and within the energy advocacy community.”

    The “dossier” Tierney referred to was a 198-page document from a former aide warning DeWine about Randazzo’s murky relationships. It was delivered to Laurel Dawson on Jan. 28, 2019 — about a week before her boss nominated Randazzo.

    Tierney said the document shows that Randazzo’s ties to FirstEnergy were well known. But the first page of the dossier says something quite different.

    “Publicly available documents suggest that PUCO applicant Sam Randazzo has opaque, undisclosed financial ties to FirstEnergy that should be fully examined and made public,” it says. “The enclosed evidence demonstrates that Randazzo personally profits from a secret for-profit entity funded by FirstEnergy Solutions.”

    Catherine Turcer, executive director of Common Cause Ohio, said that it’s past time for DeWine, Husted and their staffs to be much more forthcoming about their involvement in the bailout and about what DeWine and Husted did to investigate whether any member of the administration acted improperly.

    “It makes sense to be as clear as possible about what actually happened,” she said. “And I don’t just want to hear from the governor. I want to hear from the lieutenant governor.”

    Marty Schladen
    MARTY SCHLADEN

    Marty Schladen has been a reporter for decades, working in Indiana, Texas and other places before returning to his native Ohio to work at The Columbus Dispatch in 2017. He’s won state and national journalism awards for investigations into utility regulation, public corruption, the environment, prescription drug spending and other matters.

    Ohio Capital Journal is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.

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  • Corruption tax? Policy expert says that’s basically what Ohio utility consumers have been paying

    Corruption tax? Policy expert says that’s basically what Ohio utility consumers have been paying

    Mugshot of former Ohio House Speaker Larry (Photo from the Butler County Jail.)

    BY:  – Ohio Capital Journal

    Many politicians — especially conservatives — are loath to approve anything that could be construed as a tax increase.

    But since 2009, Ohio’s leadership has gone along with a number of questionable rate hikes demanded by regulated utilities. They’ve functioned in the same manner as tax increases — regressive ones with unsavory origins.

    There were new state charges earlier this month in Ohio’s massive FirstEnergy bribery scandal. They brought new attention to the issue, but that scandal is hardly the only time Ohio utilities have been able to impose questionable rate increases on their unsuspecting customers.

    In the scandal, Akron-based FirstEnergy paid more than $61 million in bribes in exchange for the 2019 passage and protection of a $1.3 billion ratepayer bailout. As a consequence, former House Speaker Larry Householder, R-Glenford, is serving a 20-year federal prison sentence.

    The state charges filed this month against two top FirstEnergy executives and the state’s top regulator pertain to those crimes. But they also describe more than a decade’s worth of additional shady increases in which payoffs played a central role.

    They accuse Sam Randazzo — whom Ohio Gov. Mike DeWine later appointed to be top regulator — of secretly helping FirstEnergy make huge, secret payments to powerful energy users. In exchange, the charges say, the industrial users dropped their opposition to rate increases FirstEnergy wanted to impose on all its customers.

    The payments might not have been illegal, but they functioned as kickbacks all the same.

    The Columbus Dispatch on Sunday reported that in 2008 then-Gov. Ted Strickland, a Democrat, tried to negotiate an end to the shady practice, but then-House Speaker Jon Husted killed the attempt, a former aide to Strickland told the paper. Husted is now DeWine’s lieutenant governor and is said to be planning a run in the 2026 Ohio Republican primary to be governor in his own right.

    Those increases are in addition to a whole slew of other rate hikes that Ohio’s erstwhile regulator has granted, but the state Supreme Court later ruled to be illegal. They total more than $1.5 billion worth altogether. Even though the gains have been ruled unlawful, utilities have gotten to keep them because the Public Utilities Commission of Ohio keeps granting such increases without building in a refund mechanism in the event they’re struck down.

    Jenifer French, DeWine’s appointment to replace the disgraced Randazzo, has repeated PUCO staff claims that such refund mechanisms are illegal. But the legal case seems dubious and watchdogs and lawmakers from both parties dispute it.

    So Ohio ratepayers have shelled out billions in illegal electric payments and untold millions more as the consequence of shady kickbacks to powerful companies. Those who allowed such payments are responsible for what is the functional equivalent of a tax increase, said Rob Moore, principal of Scioto Analysis, a Columbus firm that applies economics to questions of public policy.

    One reason they work the same as a tax is because one has little choice in 2024 about paying for electrical service, he said.

    “You can’t get away from it,” Moore said. “You’re going to have to pay something for electricity.” He later added, “That’s functionally no different from a tax.”

    And it’s one that falls extra-hard on the poor.

    Disconnected electricity and gas can destroy perishable food while also taking away the ability to cook it. For those who are struggling, finding money and getting to the store for one batch of food can already be a challenge. Having to do it again after arranging a reconnection can be even more difficult.

    Disconnection also can be used as a rationale for children’s services to break up a family, the Energy News Network reported in 2022.

    The news outlet reported that as part of a story about nearly 200,000 disconnections by Ohio electric utilities at the height of the coronavirus pandemic. Advocates asked the PUCO for relief, but the regulatory agency said it was powerless to act.

    Moore said that if you view utilities as the practical equivalent of a tax, it’s a regressive one.

    “In general, lower-income people pay more of their income on utilities than upper-income people,” he said.

    Moore cited a 2013 report by the U.S. Energy Information Agency saying that households in the bottom 20% of incomes made 6% of their total expenditures on home energy, while those in the top 20% paid half that.

    Energy-insecure households are likely to be poorer still. The agency last year reported that they paid 27% more in real terms than everybody else — $1.24 per square foot vs. 98 cents.

    As with the state and local tax burden, the extra costs Householder, the PUCO and others have imposed on Ohio seem to be falling most heavily on those least able to pay it.

    “Basically, he just levied a tax and lined his pockets with it,” Moore said of the former speaker.

    Marty Schladen
    MARTY SCHLADEN

    Marty Schladen has been a reporter for decades, working in Indiana, Texas and other places before returning to his native Ohio to work at The Columbus Dispatch in 2017. He’s won state and national journalism awards for investigations into utility regulation, public corruption, the environment, prescription drug spending and other matters.

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  • Ohio indictments provide a better picture of squalid relationships that spurred massive scandal

    Ohio indictments provide a better picture of squalid relationships that spurred massive scandal

    Former Public Utilities of Ohio Chair Sam Randazzo at court. (Photo by WEWS.)

    BY:  – Ohio Capital Journal

    An Ohio grand jury has handed up a 44-count indictment against three players in what is likely the biggest bribery scandal in state history. And when the 50-page indictment was unveiled Monday, it provided new details about a decade of payoffs and conflicts as one of them — who became the state’s top regulator — allegedly did a huge electric utility’s bidding.

    The indictment concerns a $1.3 billion dollar bailout that Akron-based FirstEnergy has already admitted to the federal government that it paid more than $60 million in bribes to purchase.

    Former Ohio House Speaker Larry Householder, R-Glenford, and former state GOP Chairman Matt Borges are serving federal prison sentences for their roles in the 2019 passage of the bailout and the dirty-but-succesful fight to thwart a voter-led repeal.

    When federal prosecutors in 2021 charged those two and three others, they said their investigation continued. But it wasn’t until December that they charged another in the case — Sam Randazzo, a lawyer and longtime energy consultant whom Gov. Mike DeWine nominated to chair the state’s top regulator, the Public Utilities Commission of Ohio.

    That left the people who paid the alleged bribes — FirstEnergy’s top executives — uncharged in a scheme that took place more than four years ago.

    Double dealing

    All that changed Monday when Ohio Attorney General Dave Yost announced state charges against Randazzo and former First Energy CEO Chuck Jones and former Vice President Michael Dowling for their alleged roles in the criminal conspiracy. The three were arraigned in Akron on Tuesday and each pleaded not guilty.

    They were charged in an indictment that alleged shady dealings between the them stretching back 13 years.

    “It all began with a well-lawyered theft in 2010,” the indictment said.

    It went on to describe how Randazzo was general counsel for a group of large FirstEnergy customers — the Industrial Energy Users of Ohio — while also working as a FirstEnergy consultant. Only, the Industrial Energy Users didn’t know that Randazzo was also being paid by the company they were paying him to fight, the indictment said.

    It accuses Randazzo of settling the industries’ claims against FirstEnergy on terms acceptable to FirstEnergy and running the settlements through Randazzo-controlled shell companies where he took a skim — again, unknown to the industrial energy users.

    “His clients, the industrial members of IEU-Ohio, did not know he was a consultant for FirstEnergy,” the indictment said. “Randazzo did not tell them. Years later, some of the money would make its way to IEU-Ohio. Some of it would end up in Randazzo’s pocket.”

    The Industrial Energy Users appear to have engaged in some cynical conduct of their own, however. The indictment describes a 2015 agreement in which FirstEnergy was to pay Randazzo’s company $8.5 million for “consulting services.”

    It was really a cash “side deal” in which FirstEnergy paid the industrial users to drop their objections to a rate hike FirstEnergy wanted, supposedly in the name of “energy security,” the indictment said. In other words, prosecutors said that with Randazzo’s facilitation, FirstEnergy paid off a wealthy, powerful group of electricity users in order to raise rates on everybody else.

    Such arrangements proved quite profitable for Randazzo.

    “Between 2016 and 2019, FirstEnergy paid… $13,152,639.94 to Randazzo’s two shell companies,” the indictment said. “Of that total, Randazzo gave $7,756.903.84 to his IEU-Ohio Client and kept $5,395,736.10 for himself.”

    Cozy relationships

    This is the guy the incoming DeWine-Husted administration thought would be a good candidate to regulate utilities — companies to which Ohioans have little choice in paying their billions.

    The state indictment describes how, on Dec. 18, 2018, FirstEnergy execs Jones and Dowling met with Gov.-elect DeWine and Lt. Gov.-elect Jon Husted at the Columbus Athletic Club and discussed whether the executives wanted Randazzo to regulate their massive electric utility.

    The notion that a governor would ask a huge utility who might be acceptable as a regulator might itself seem startling. But after the dinner, according to the indictment, Jones and Dowling did something even more brazen.

    They went to Randazzo’s German Village condo and pursuant to that, Randazzo solicited a $4.3 million payment from Jones and Dowling, the indictment said. FirstEnergy paid the money “without ever having received an invoice for the payment and without any work or consulting services being performed,” the indictment said. It added that the executives made the payment over the objections of a company lawyer.

    Randazzo told Laurel Dawson, DeWine’s chief of staff, about the payment, calling it a “consulting agreement.” But he didn’t tell her of the other millions he’d gotten from the utility he was seeking to regulate, the indictment said. Randazzo also never told the Ohio Ethics Commission about any of the money he’d gotten from FirstEnergy, the indictment said.

    In Dawson, Randazzo might have had a sympathetic audience. Her husband, Michael Dawson, was a “paid FirstEnergy lobbyist” in 2016, when he’d gotten a $10,000 loan from Randazzo, the indictment said.

    But if his chief of staff told DeWine about the huge payoff Randazzo got from FirstEnergy, it must not have fazed the new governor. DeWine nominated Randazzo to be chairman of the Public Utilities Commission — the ratepayers’ supposed protector — on Feb. 4, 2019.

    Versatile player

    During Householder’s six-week trial in Cincinnati last year, federal prosecutors put on exhaustive evidence of how the FirstEnergy executives financed Householder’s bid to become speaker and to pass the notorious bailout known as House Bill 6.

    “Together, Jones, Dowling, Randazzo and his shell companies worked in concert to steal the power of government and bend it to the will of FirstEnergy,” was the way the state indictment unveiled on Monday put it.

    Most of the details of Randazzo’s involvement in the creation and passage of HB 6 are already known from the federal trial. They show him acting in multiple, conflicting, often-undisclosed capacities — similar to those the state indictment alleges he had already played with FirstEnergy and the industrial energy users.

    Even though he was supposed to be a regulator, Randazzo drafted portions of the bailout legislation and passed them between FirstEnergy officials and a Householder employee who had recently worked for the PUCO. They sometimes only shared printed copies of the huge bill, out of an apparent apprehension about leaving electronic fingerprints.

    According to text messages between Jones and Dowling, Randazzo went so far as to actively lobby for passage of the bailout — which would seem a big departure from the traditional duties of a disinterested regulator.

    Jones and Dowling discussed a meeting about HB 6 that Randazzo had with Sen. Steve Wilson, R-Maineville, and the Senate’s counsel. “We have a good plan to help,” Dowling told his boss.

    Other officials

    Despite the fact that DeWine had reason to know Randazzo was connected to FirstEnergy, the governor made him the state’s top utility regulator and he signed the billion-dollar bailout that benefitted the company the day it passed. And on July 21, 2021 — the day Householder was arrested — DeWine said he wasn’t in favor of repealing the measure.

    The governor subsequently walked that back, but HB 6 is still on the books and Ohio utilities are still getting hundreds of millions in ratepayer subsidies as a result.

    DeWine wasn’t the only state official to act at least peripherally in the scandal.

    Secretary of State Frank LaRose has refused to explain the “private” updates that FirstEnergy CEO Jones said the state’s chief elections official was providing during an attempt to gather signatures to put an HB 6 repeal on the ballot.

    And Yost himself dealt a mortal blow to the signature gathering when he initially rejected the ballot language — cutting nearly in half the time HB 6 opponents had to gather a quarter-million valid signatures. And in text messages presented in the federal trial, Borges told a co-conspirator that Yost thought HB 6 was a bad law, but wouldn’t speak up because of help he’d gotten from FirstEnergy in the past.

    Beyond the bailout

    Randazzo’s alleged help to FirstEnergy wasn’t limited to HB 6. He also thwarted a PUCO look into the company’s books that was likely to force a cut in electricity bills. That would have caused falling stock prices and a hit to Jones’ and Dowling’s portfolios, the indictment said.

    The erstwhile regulator was apparently so helpful that Jones at one point told a FirstEnergy subordinate to back off for fear of being too obvious. In a text message included in the indictment, Jones told Dennis Chack that Randazzo’s pro-FirstEnergy conduct “has a lot of talk going on in the halls of PUCO about does he work there or for us?”

    Even so, Randazzo’s behavior at the PUCO continued to be shameless, urging fellow regulators to join him in lobbying for the corrupt bailout, the indictment said.

    Randazzo “began internally lobbying PUCO staff members between July 2020 and September 2020 to generate strategies to save HB 6, despite facing internal objections about the inappropriateness of the effort to save HB 6,” it said.

    The indictment included a Sept. 15, 2020 email in which Randazzo told subordinates, “One option (and I really think we need to get other commissioners and staff into a proactive mode): We could, on our own initiative, issue a show-cause order to (FirstEnergy) directing (FirstEnergy) to show that no costs associated with HB 6 have been included in any riders or base rates.”

    Had such an order been issued, the result would have been misleading. While the bill didn’t raise consumer costs through riders or base rates, it included a provision that ensured FirstEnergy would collect at least as much as it did in one of its best years and it created a massive subsidy for money-losing coal plants.

    Randazzo’s efforts seemed finally to end two months later, when the FBI searched his condo.

    Marty Schladen
    MARTY SCHLADEN

    Marty Schladen has been a reporter for decades, working in Indiana, Texas and other places before returning to his native Ohio to work at The Columbus Dispatch in 2017. He’s won state and national journalism awards for investigations into utility regulation, public corruption, the environment, prescription drug spending and other matters.

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  • Ohio Gov. Mike DeWine and Lt. Gov. Jon Husted subpoenaed in civil suit over bailout scandal

    Ohio Gov. Mike DeWine and Lt. Gov. Jon Husted subpoenaed in civil suit over bailout scandal

    COLUMBUS, OH — MAY 03: Ohio Gov. Mike DeWine joined on stage by First Lady Fran DeWine, grandson Calvin, Lt. Gov. Jon Husted and Second Lady Tina Husted to celebrate DeWine winning the Republican Party nomination for governor in the Ohio primary election, May 3, 2022, at the DeWine-Husted campaign headquarters, Columbus, Ohio. (Photo by Graham Stokes for the Ohio Capital Journal. Republish photo only with original article.)

    BY:  –

    Plaintiffs in a civil suit related to a massive bribery and money-laundering scandal have subpoenaed documents from Ohio Gov. Mike DeWine and they’re scheduling a sworn deposition with Lt. Gov. Jon Husted.

    There have been four criminal convictions so far in the scandal and U.S. Attorney Kenneth L. Parker has said the investigation is continuing. However, there is no indication that DeWine or Husted is an object of it.

    Even so, members of the DeWine-Husted administration were significant players in the scandal and DeWine’s nominee to head up the Public Utilities Commission of Ohio could be a target of the probe.

    The demands for documents and testimony come in a class-action suit that big investors in Akron-based FirstEnergy filed against the company over its involvement in the scheme. Between 2017 and 2020, the company paid out more than $60 million to gain a $1.3 billion ratepayer bailout that was mostly intended to prop up two failing nuclear plants in Northern Ohio.

    Among those already convicted are former Ohio House Speaker Larry Householder, R-Glenford, who was sentenced to 20 years in prison for his role in what federal authorities said might be the biggest bribery and money-laundering scheme in Ohio history. Former state Republican Chairman Matt Borges in June was sentenced to five years for his role.

    However, others who played prominent roles in the scandal are yet to be charged.

    They include former FirstEnergy CEO Chuck Jones and former Vice President Michael Dowling, who directed the money to make Householder speaker in 2018 and then pass and and protect House Bill 6, the corrupt bailout legislation. They also include Sam Randazzo, DeWine’s first nominee to chair the Public Utilities Commission of Ohio.

    Jones, Dowling and Randazzo deny wrongdoing, but in a deferred prosecution agreement, FirstEnergy said Jones and Dowling paid Randazzo a $4.3 million bribe just as DeWine was selecting Randazzo to be FirstEnergy’s top regulator. In that post, Randazzo helped write the corrupt bailout bill and he helped FirstEnergy avoid a scheduled audit known as a “rate case” that was slated for 2024.

    Large investors such as pension and investment funds are suing FirstEnergy over the scandal, arguing that the company violated securities laws by not disclosing its reckless conduct. And then, when the feds made arrests in July 2020, its stock value plummeted — as did their investments.

    The plaintiffs in the civil case have been battling with Randazzo — who is not a defendant — since April over whether he has complied with judges’ orders to produce documents relevant to the $4.3 million in FirstEnergy money he received just before he began regulating the company.

    A magistrate judge and a special master in the case have consistently rebuked Randazzo for not cooperating more fully, with the most recent instance coming last week. Randazzo appealed up the food chain, asking Magistrate Judge Kimberly Jolson not to hold him to a disclosure order from the special master, Shawn K. Judge.

    The plaintiffs in the civil case asked Jolson to make Randazzo comply with Judge’s order to cough up more information. As part of the filing, they provided a table of depositions they’ve scheduled or are in the process of scheduling. To prepare for some, they presumably could use the information and documents they’re demanding of Randazzo.

    One deposition they’re scheduling is of Randazzo himself, which has a “target period” of March 4 to March 29.

    Another is of Husted, the lieutenant governor, which has a target period of Feb. 28 to March 19. Dave Anderson of the Energy and Policy Institute first flagged the document that listed Husted’s deposition.

    Hayley Carducci, Husted’s spokeswoman, on Tuesday said Husted is cooperating.

    “We’re aware of the civil investor lawsuit against First Energy,” she said in an email. “The Lt. Governor has already provided public records pertaining to this, and we will continue to comply as we have done in the past. There’s no new information to disclose.”

    As with Randazzo, Husted is not a defendant in the civil case.

    DeWine also has recently received a subpoena for documents in the civil case.

    “We’re reviewing it with counsel for what can be provided,” Press Secretary Dan Tierney said in an interview. “Our office is subject to the public records act and in a sense this is no different.”

    Tierney pointed out a distinction between the class-action suit and the case which has already convicted Householder and Borges and proceedings that could charge others.

    “This is a civil case and anybody has a right to bring a civil case if they want,” Tierney said of the proceeding in which the governor’s documents had been subpoenaed. “The civil process is where people say they’ve been damaged and they want the court to award damages. That is far different than the criminal case in which the federal government said public integrity laws had been violated.”

    He added, “It still remains in the criminal case that nobody in our office or the lieutenant governor’s office has been questioned or subpoenaed or had any legal filings like that.”

    Even in the absence of such requests, DeWine and his administration were involved several ways in the drafting and passage of the corrupt utility bailout:

    • He nominated Randazzo to head up the PUCO a day after it was publicly revealed that FirstEnergy had paid a group controlled by Randazzo millions of dollars over the years. “Forced DeWine/Husted to perform battlefield triage,” FirstEnergy CEO Jones said in a text message to Dowling. “It’s a rough game.”
    • While he was still a FirstEnergy lobbyist, Dan McCarthy set up Partners for Progress, a 501(c)(4) “dark money” group through which Jones, Dowling and others funneled millions into the conspiracy. DeWine hired McCarthy as his legislative affairs director and kept him in that post for a year after Householder and the others were arrested.
    • HB 6, the bailout legislation, was highly controversial as Householder jammed it through the legislature, other lawmakers testified at his trial. Even so, DeWine signed it the day it passed and when Householder was arrested, the governor’s first position was to keep the law in place — and part of it still is. DeWine reversed himself a day later, calling to repeal and replace the subsidies.

    Morgan Trau contributed to this report.

    Marty Schladen
    MARTY SCHLADEN

    Marty Schladen has been a reporter for decades, working in Indiana, Texas and other places before returning to his native Ohio to work at The Columbus Dispatch in 2017. He’s won state and national journalism awards for investigations into utility regulation, public corruption, the environment, prescription drug spending and other matters.

    MORE FROM AUTHOR

  • State COVID-19 Update: Nursing Home Visitation, Statewide Case Rate, Rapid Testing, County Fairs

    State COVID-19 Update: Nursing Home Visitation, Statewide Case Rate, Rapid Testing, County Fairs

    Ohio Governor Mike DeWine and Lt. Governor Jon Husted today provided the following updates on Ohio’s response to the COVID-19 pandemic. 

    NURSING HOME VISITATION

    Governor DeWine today discussed the new federal regulations for nursing home visitation, as well as Ohio’s Vaccine Maintenance Program. The visitation guidelines, issued by the Centers for Medicare and Medicaid Services (CMS) indicate visitation should be happening in nursing homes. There are a few specific exceptions that would limit visitation, such as outbreaks in the facility or an extreme number of cases in the community.  Full information on the federal nursing home visitation guidance is available at cms.gov. 

    Additionally, Governor DeWine highlighted the progress being made by Ohio’s Vaccine Maintenance Program for nursing homes and assisted living facilities. Ohio’s Vaccine Maintenance Program ensures new nursing home residents and employees, and established residents and employees who previously decided not to receive a vaccine, can still choose to receive one. Governor DeWine emphasized the importance of every nursing home resident receiving a vaccine. 

    Long-term care facility visitation status is available on the dashboard at coronavirus.ohio.gov.

    STATEWIDE CASE RATE

    Governor DeWine announced that, statewide, Ohio is currently at a rate of 155 cases of COVID-19 per 100,000 people during the past two weeks. Last week, statewide data put Ohio at 180 cases per 100,000 people. 

    “In Ohio, we are still at a very elevated level of cases, but today’s health data is certainly trending in the right direction,” said Governor DeWine. 

    In an evening address last week, Governor DeWine announced that when Ohio reached 50 cases per 100,000 people for two weeks, all health orders will be lifted. 

    The Ohio Department of Health will update this data each Thursday.

    March 11

    RAPID TESTING 

    Governor DeWine today detailed four initiatives that are making rapid COVID-19 tests more accessible to Ohioans:

    • Federal Qualified Health Centers
      • The state’s ongoing partnership with federally qualified health centers has led to the availability of over 150,000 rapid tests at community health centers. These centers have professionals on-hand to administer the tests free of charge.
    • Local Health Departments
      • Local health departments have partnered with their communities to make at-home testing available to schools, nonprofit organizations, and first responders.
    • Public Libraries
      • The state has recently partnered with public libraries to make at-home tests available to more Ohio communities. During the first two weeks, Ohio has partnering with 120 libraries.
    • K-12 Schools
      • A new partnership launched today will bring 200,000 at-home tests to Educational Service Centers. To increase confidence and safety in schools, Governor DeWine encourages school districts to take advantage of this resource and develop aggressive testing plans.

    Between libraries and local health departments, at-home testing is accessible in 76 of Ohio’s 88 counties. Some of these areas had disproportionate access to testing earlier in the COVID-19 pandemic.

    GUIDANCE ON FAIRS

    Governor DeWine announced that the Ohio Department of Health issued a revised order that allows for the reopening of all fair activities if certain health conditions are met. The updated order includes compliance with the statewide mask order and social distancing. Additionally, there will be a 25 percent maximum for indoor grandstand capacity and a 30 percent maximum for outdoor grandstand capacity. 

    Additionally, the Ohio Department of Health will issue updated order and guidance regarding festivals, parades, proms, and spring sports. For spring sports, students will not be required to quarantine because they have an incidental exposure to COVID-19 in a classroom unless symptoms develop. 

    These orders and guidance will be forthcoming from the Ohio Department of Health.

    LETTER ADDRESSING PUA FRAUD

    Governor DeWine and Lt. Governor today sent a letter to President Joe Biden urging the development of a national, coordinated response to ongoing, widespread fraud attempts being committed through the unemployment system, specifically the federal Pandemic Unemployment Assistance (PUA) Program.

    See below for an excerpt from the letter:

    “We urge you to immediately develop a national, coordinated response to this ongoing attempt to defraud the American people and our national and state governments. While states are doing everything they can to administer the federal programs while maintaining system integrity, a state-by-stare response is proving inadequate. This is not an Ohio problem — it’s a national problem that requires a national solution.”

    CURRENT CASE DATA

    In total, there are 984,934 confirmed and probable cases of COVID-19 reported in Ohio and 17,825 COVID-19 deaths. A total of 51,323 people have been hospitalized throughout the pandemic, including 7,255 admissions to intensive care units. In-depth data can be accessed by visiting coronavirus.ohio.gov. 

    Video of today’s full update, including versions with foreign language translation, can be viewed on the Ohio Channel’s YouTube page. 

    For more information on Ohio’s response to COVID-19, visit coronavirus.ohio.gov or call 1-833-4-ASK-ODH.

  • Trump swipe at DeWine follows year of campaign support, and COVID-19 praise

    Trump swipe at DeWine follows year of campaign support, and COVID-19 praise

    President Donald Trump meeting with governors, including Ohio Gov. Mike DeWine. Photo by Mark Wilson/Getty Images.

    By Tyler Buchanan

    A year of Gov. Mike DeWine defending the president’s pandemic response and supporting his reelection effort was undone by a brief acknowledgment of reality on cable TV.

    To President Donald Trump, one comment is all it takes for someone to go from political ally to persona non grata.

    On Sunday, DeWine said on CNN that Trump has a right to legally challenge the 2020 election result, but should begin working toward a transition for President-elect Joe Biden. That clip was aired Monday morning on Fox News, a network Trump frequently watches at the White House, leading the president to target DeWine’s own reelection hopes in 2022:

    This tweet to the president’s 89 million followers bookends a year in which DeWine has consistently praised Trump and frequently dodged questions related to the president’s handling of the pandemic.

    DeWine’s office issued this statement in response to the president’s tweet: “I have always had a great working relationship with the President. I am proud to have served as President Trump’s Campaign Co-Chairman in Ohio where we won by the largest margin of any swing state in the country. And I intend to run a winning campaign for governor in 2022.”

    DeWine served as an honorary co-chair to Trump’s campaign in Ohio and recorded a video in support of Trump for the 2020 Republican National Convention. His lieutenant governor, Jon Husted, spoke at a Trump rally in September in favor of the president’s reelection — though the crowd of Trump supporters booed Husted for promoting mask-wearing to prevent COVID-19 spread. 

    While DeWine has emphasized the need for masks and social distancing, Trump has often undercut this public health message by hosting large campaign rallies and downplaying the effectiveness of face coverings.

    DeWine has sidestepped questions from reporters about these contradicting messages, instead choosing to praise the White House for its conference calls with governors and for its work in helping develop a vaccine. 

    The Trump tweet came anyway. 

    The president’s suggestion of a Republican primary comes as DeWine faces increasingly sharp attacks from seemingly all sides regarding his handling of the COVID-19 pandemic. Democratic leaders, who have generally been supportive of the Republican governor and the Ohio Department of Health, want him to take more aggressive steps to slow the spread as Ohio sees record numbers of infections and hospitalizations.

    Republican legislators have dialed up their own criticism of their party’s leader, insisting DeWine should refrain from issuing any further health orders such as business shutdowns.

    DeWine earned very high marks from the general public early in the pandemic for his aggressive response in partnership with then-Ohio Department of Health Director Dr. Amy Acton. That support led to widespread cooperation in the early weeks as the two enacted business closures and a stay-at-home order.

    Support for DeWine has gradually waned in the months since, though a Great Lakes poll in September found a majority of Ohioans still viewed DeWine’s coronavirus response favorably.

    Hours after Trump’s tweet, DeWine did receive a compliment from President-elect Joe Biden at a Monday afternoon press conference. Biden referred to DeWine as a leader in having “stepped up” to issue a mask mandate in Ohio.

    Outside of the electoral ramifications of Trump’s tweet, the public sentiment over the Ohio pandemic approach may impact DeWine’s ability to amass future cooperation for any health orders still to come.

    DeWine has hinted that orders pertaining to bars, restaurants and social gatherings could come as soon as this week. 

    The governor spent early Monday in West Virginia speaking to TV stations which broadcast to the southern and eastern portions of Ohio. DeWine has offered region-specific messages to Ohioans about the virus spike and how residents can slow the spread in their areas.

    With this year’s election now over, some Ohio Republicans have begun turning their attention to 2022. Among them is Jim Renacci, a former Congressman from Medina County and fervent Trump supporter who ran for governor against DeWine in 2017. Renacci quit the Republican primary to instead campaign for U.S. Senate against Democratic incumbent Sherrod Brown, who defeated Renacci in the 2018 General Election.

    State Rep. Jena Powell, R-Arcanum, has offered a similar view.

    “The solution today is taking away (DeWine’s) emergency powers,” Powell wrote on Facebook after the governor’s statewide address on Nov. 11. “The solution in two years is to not re-elect Mike DeWine.”

    Powell shared Trump’s tweet in agreement.

    “Even President Donald J. Trump knows Governor Mike DeWine is doing a terrible job,” she posted. “Ohio needs conservative leadership that actually represent the people first.”

    Some Ohio Democrats see the Trump tweet as a political lesson.

    U.S. Sen. Rob Portman, R-Ohio, is another Republican facing reelection in 2022. He has not yet acknowledged the presidential election result.

  • Secretary Husted Certifies 2018 General Results

    Secretary Husted Certifies 2018 General Results

    Ohio Secretary of State Jon Husted certifies the results of the 2018 General Election.

    Columbus, Ohio – Ohio Secretary of State Jon Husted has certified the results of the 2018 General Election. The official results are now available via the link below and on the Secretary of State’s website.

    “Once again, election officials across Ohio stepped up to the plate and delivered another well-run election,” Secretary Husted said. “I am proud of the work we have done to make smooth and efficient elections the norm in Ohio, and I look forward to seeing the next administration build on our successes.”
    Reports for provisional and absentee ballots cast in the 2018 November General are available via the links below and on the Secretary of State’s website.
    Certified results for local races are available by contacting the corresponding county board of elections. A list of all 88 county boards of election is available online. The Local Issues Report will be available in the coming days.
    Additional Information:
    2018 General Election Absentee Ballot Report

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  • Nearly 911,000 absentee ballots requested, more than 42,000 absentee ballots cast to date in Ohio

    Nearly 911,000 absentee ballots requested, more than 42,000 absentee ballots cast to date in Ohio

    Just 21 days ahead of the November 6 General Election, Ohio Secretary of State Jon Husted said today that as of Friday, October 12, an estimated 910,982 absentee ballots had been requested and 42,470 had been cast statewide. This includes more than 7,900 ballot requests from military and overseas voters, whose absentee ballots started going out on Saturday, September 22, of which nearly 1,200 have been cast. Ballots for all other voters started going out on October 10 and more than 41,000 have been cast by mail and in person.

    2018 General Election By-the-Numbers

    • 8,025,232 Ohioans are registered to vote.
    • 910,982 voters have requested an absentee ballot by mail as of Friday.
    •  Of those, 42,470 have been cast.
    • 34,252voters have requested and cast an absentee ballot in person as of Friday.
    • 7,914military & overseas voters have requested an absentee ballot as of Friday.
    • Of those, 1,176 have been cast.
    At this same point during absentee voting in 2014, nearly 741,000 absentee ballots had been requested and more than 49,000 ballots had already been cast.
    During the 2018 General Elections, voters will decide a statewide ballot initiative, as well as races for both state and federal offices. There will also be 1,661 local issues(opens in a new window) across the state and a number of local races, which voters can obtain additional information on by contacting their county board of elections.
    Ohio voters have multiple options available to them to cast a ballot over a four week period that began October 10. A registered voter can cast an absentee ballot by mail or early in person, which gives them 24 hours a day to vote from home or nearly 200 hours to vote in person that includes weeknights and weekends, respectively. There is also Election Day, during which voters have 13 hours to cast a ballot at their neighborhood polling location. The voting schedule is accessible on the Secretary of State’s website.
    The full, detailed and interactive 2018 elections calendar is available online.
    For more information on the upcoming November 6 General Election or to download an absentee ballot request form, visit MyOhioVote.com.
    Additional Information:
    County-by-County Breakdown of Early Voting Numbers

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  • Representative from the Secretary of State’s office will be available in Batavia on September 7

    Representative from the Secretary of State’s office will be available in Batavia on September 7

    Ohio Secretary of State Jon Husted today announced that a representative from the Secretary of State’s office will be available in 17 counties around Ohio including Clermont.

    “Open office hours provide local residents an opportunity to stay connected with the Secretary of State’s office in an informal and accessible setting,” according to the press release.
    Those who visit open office hours may obtain voter registration forms and other election information. Additionally, an office representative will be on hand to answer questions about the various functions of the office and its many initiatives, such as the business services division, Ohio Business Profile and the Military Ready-to-Vote program.
    9/7/2018
    10 AM until Noon
    Batavia Branch Library
    180 South Third Street
    Batavia, Ohio 45103