ML20305A420
| ML20305A420 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 10/31/2020 |
| From: | Funk J Utility Dive |
| To: | NRC/OGC |
| SECY RAS | |
| References | |
| 50-320-LT, General Proceeding, RAS 55844 | |
| Download: ML20305A420 (3) | |
Text
10/31/2020 FirstEnergy fires CEO,2other topexecutives inwakeof$61Mpolitical bribery scandal lUtility Dive UTILITYDIVE BRIEF i
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ByJohnFunk Published Oct.
30, 2020 DiveBrief:
= Anindependent review committee ofFirstEnergy's board of directors onThursday evening announced theimmediate termination ofCEOCharles "Chuck" Jones andtwoother top executives overseeing marketing andexternal affairs for violating "certain FirstEnergy policies andits codes of conduct."
Themovefollowed thesame-day guilty pleas oftwoof four lobbyists charged inJuly inafederal racketeering probeinto the nearly
$61million campaign tofundthepassage byOhio lawmakers ofa$15billion public bailout oftwonorthern Ohio nuclear powerplants previously ownedbyFirstEnergy andtwo coal-fired plants ontheOhioRiver jointly ownedbythestate's utilities.
Though notidentified intheJuly indictment, FirstEnergy is believed tohavebeen"Company A"intheinvestigation ofhow corporate "dark money" wasusedbyformer OhioHouse Speaker LarryHouseholder tofundthemulti-year campaign for passage ofthebailout legislation.
Householder haspled not guilty tothecharges andisawaiting trial.
DiveInsight:
https://www.utilitydive.com/news/firstenergy-fires-ceo-2-other-top-executives-in-wake-of-61m-p 1/3
10/31/2020 FirstEnergy fires CEO,2other topexecutives inwakeof$61Mpolitical bribery scandal lUtility Dive Jonesduring thecompany's Julyearnings call said FirstEnergy contributed about aquarter ofthe$60million campaign organized byHouseholder, butJonesstressed that hebelieved the corporation hadacted ethically andwithin thelaw.
Jonesalso confirmed that thecompanyhadreceived subpoenas inconnection withthe federal investigation.
Thursday'sannouncement byFirstEnergy's board ofdirectors madeitclear that the dismissals wereinfact related tothe company's involvement inthe Householder scheme that ledtothe successful passage ofthe bailout legislation, HouseBill 6.
"During thecourse ofthe Company's previously disclosed internal review related tothegovernmentinvestigations, theIndependent Review Committee oftheBoard determined that these executives violated certain FirstEnergy policies andits code ofconduct,"the board's release noted.
FirstEnergy hasnotbeencharged inthe Householder probe bythe Justice Department.
NorhasEnergy
- Harbor, thenewly organized companythat emerged inFebruary fromthetwo-year bankruptcy casefiled byformer FirstEnergy subsidiary FirstEnergy Solutions.
Anddespite aflurry ofhearings torevoke HB6earlier inthefall, theRepublican-controlled OhioHouseandSenate havenotmoved repeal legislation outofcommittee.
OhioConsumers' Counsel BruceWeston, whohaspushed for afull investigation ofFirstEnergy's involvement intheHouseholder
- scheme, said theguilty pleas bytwoofthelobbyists involved and thedismissals bythecompanyconfirm hissuspicions.
"For sometimeI've beensaying that utilities withtheir corporate interest haveundueinfluence tothedetriment oftheOhiopublic interest.
Today's announcements inthecourtroomandthe FirstEnergy boardroom aremoreconfirmation ofsomething rotten https://www.utilitydive.com/news/firstenergy-fires-ceo-2-other-top-executives-in-wake-of-61m-p 2/3
10/31/2020 FirstEnergy fires CEO,2other topexecutives inwakeof$61Mpolitical bribery scandal lUtility Dive inoursystemthat hastobepurged, beginning withtherepeal now oftainted HouseBill 6andcontinuing withother consumer protection reforms,"
Westonsaid.
Citizens UtilityBoardExecutive Director TomBullock said the latest developments ought tomotivate lawmakers torepeal HB6.
"TheHB6 scandal hasreached agrimmilestone
- the'allegations' have nowofficially become crimes, andthevictims areOhio consumers whoare on thehookforhigher powerbills because ofa corrupt energy bailout. We urgeOhioleaders tostand upfor consumersandrepeal HB 6,"
Bullock said inastatement Friday morning.
FirstEnergy's board namedStevenStrah, whohasserved as president ofFirstEnergy since May,asacting chiefexecutive.Strah began hiscareer withthecompanyin1984.
Theboard also namedoneofits owndirectors, Christopher
- Pappas, asexecutive director.
- Pappas, whowill report directly to thenon-executive chairman oftheboard, Donald Misheff, will "oversee themanagementteam's execution ofFirstEnergy's strategic initiatives, engage withthecompany's external stakeholders, andsupport thedevelopment ofenhanced controls andgovernance policies andprocedures."
https://www.utilitydive.com/news/firstenergy-fires-ceo-2-other-top-executives-in-wake-of-61m-p 313