By Stephen Smoot
What started as a federal bribery case in Ohio could give local energy customers a boost come this summer.
Early last month, Sam Randazzo, former chair of the Public Utilities Commission of Ohio and former Speaker of the Ohio House of Representatives, surrendered to federal authorities. Along with four other powerful Ohio political figures, he was indicted in a $60 million bribery scheme that involved state support for nuclear power plants and cash payouts to preferred political candidates.
First Energy was involved in the bribery scheme.
In the wake of First Energy’s first rate request since 2014 from the State of West Virginia’s Public Service Commission, the PSC “ordered a general investigation into the lobbying expenditures” of two First Energy subsidiaries in West Virginia, which were Monongahela Power and Potomac Edison.
These companies combined serve most of the Potomac Highlands region of West Virginia.
The audit was undertaken by Van Reen Accounting LLC. They gave Chair Charlotte Lane, PSC chair, two recommendations.
First, they recommended that the state look more closely into nearly $19 million paid to BCG Resources in Columbus, Ohio, in lobbying expenses.
They also discovered nearly $230,000 in “certain sponsorship costs . . . mischarged to Mon Power and PE” over a nine-year period of time. The companies determined that this misdeed came to more than $2.5 million, which is owed to the customers of both companies.
Customers should expect to see their bills credited in July 2024.
The rate hike requested was described as an “ENEC” or expanded net energy costs. The hike, essentially, is said to cover the higher costs of producing energy. As West Virginia Metro News reported, Monongahela Power and Potomac Edison requested a $167.5 million rate hike that would add an average of $9.19 to each monthly bill.
This increase could potentially be added to another request that could push electric bills up as much as 15 percent. WBOY reported that Lane stated that the PSC would take First Energy related matters into consideration while the board examines and decides on the rate increase.
Costs are also expected to rise steeply next year, due to higher federal emissions regulations from the Biden Administration that impose higher cost burdens on energy producers.
First Energy agreed to pay a $230 million fine to be split among multiple federal agencies for their role in the affair.
