COLUMBUS, Ohio—A Franklin County judge on Monday blocked the collection and distribution of the House Bill 6 nuclear bailout fee, which Ohio ratepayers were scheduled to start paying next month.
Common Pleas Judge Chris Brown’s blockbuster ruling comes as state lawmakers dither on what, if anything, to do about the $1 billion-plus nuclear bailout in HB 6, the law that ex-House Speaker Larry Householder allegedly pushed through using the largest bribery scheme in Ohio history.
“Frankly, the work of the 133rd General Assembly is quickly coming to an end,” the judge said during a hearing Monday. “As of today, as of this moment, there has been no movement of any legislation, and the court feels that ...putting the ball in the General Assembly’s court would be an abdication of my responsibility to decide these issues.”
Brown added: “To not impose an injunction ...would give the OK that bribery is allowed in the state of Ohio and that, you know, any ill-gotten gains can be received. All you’ve got to do is find the right legislator, find the right speaker of the House.”
Under HB6 as written, from 2021 until 2027, every Ohio electricity customer has to pay a new monthly surcharge that ranges from 85 cents for residential customers to $2,400 for large industrial plants. The money would go to Energy Harbor, a former FirstEnergy Corp. subsidiary that owns the Davis-Besse and Perry nuclear plants along Lake Erie.
Federal authorities allege that Householder and four allies received more than $60 million from FirstEnergy Corp., which they used to secure the passage of HB6 and fend off a potential referendum to overturn it. So far, two Householder allies -- political aide Jeff Longstreth and FirstEnergy lobbyist Juan Cespedes -- have pleaded guilty to racketeering conspiracy charges for their roles in the scandal, though Householder himself has maintained his innocence.
In the days after Householder’s arrest, state lawmakers vowed to repeal HB6. But after months of hearings and negotiations, a repeal appears off the table, and Republican legislative leaders are trying to find agreement on some sort of reform bill that might include delaying the bailout fee until 2022.
Energy Harbor has even been lobbying lawmakers to give it the option of turning down the bailout altogether, as federal regulators might make it much harder for the company to sell electricity from the plants if it accepts the money.
The bailout fee freeze was sought by Attorney General Dave Yost’s office and the cities of Columbus and Cincinnati.
“Today’s ruling proves that the powerful can be held accountable and that corruption will be rooted out,” said Yost, a Columbus Republican, in a statement. “Everybody who pays an electric bill whether for their own home or a job-sustaining manufacturer, is the winner today. Your pocket will not be picked.”
Separately, a federal judge on Monday agreed to delay the criminal case against Householder and the remaining two defendants -- lobbyists Matt Borges and Neil Clark -- until mid-March of 2021, so the defense can have time to review the “voluminous” evidence in the case.