Indictments raise concerns about future of FirstEnergy in Akron

Many in Akron wondered if former FirstEnergy executives implicated in the public corruption scandal that rocked Ohio in 2020 would ever be held accountable.

Did ex-CEO Chuck Jones have enough money and political connections to avoid criminal charges like others caught up in the House Bill 6 scandal?

A Summit County grand jury on Friday quietly answered that by secretly indicting Jones and Michael Dowling, FirstEnergy’s ex-senior vice president of external affairs, on scores of state felony charges.

Ohio’s former Public Utilities Commission of Ohio Chairman Sam Randazzo, already facing federal public corruption charges, was also charged in Summit County.

Ohio Attorney General Dave Yost on Monday announced the indictments publicly, saying Jones, Dowling and Randazzo “hijacked Ohio’s regulatory structure” to benefit FirstEnergy and themselves.

If convicted, the men could face time in one of Ohio’s state prisons, which have a reputation of being less safe and less comfortable than their federal counterparts. They were booked at the Summit County Jail Monday and released on $10,000 bonds. They are under house arrest with GPS monitors and were ordered to surrender their passports by Tuesday, according to Summit County court records.

All three will be arraigned Tuesday afternoon in Summit County Common Pleas Court.

FirstEnergy investors appeared to shrug off the new indictments, which mark the first charges against any current or former employees of FirstEnergy in the HB 6 scandal.

The Akron-based company’s stock closed Monday up 46 cents per share, or 1.2%, several hours after the new indictments were revealed.

But in Akron, the news reignited worry over what this could mean for FirstEnergy and its future as a corporate leader here.

The company this year already announced it is selling its 19-story office tower downtown and consolidating its operations on the west side of Akron.

And, last year, FirstEnergy spinoff company Energy Harbor announced it was merging with Texas-based Vistra in a $3.43 billion deal that would relocate Energy Harbor’s Akron headquarters on East Market Street to Texas.

FirstEnergy says company has made changes

Jennifer Young, a FirstEnergy spokesperson, Monday declined to comment on the indictments. But she reiterated that the company has changed since the FBI in 2020 accused FirstEnergy executives of bribing former House Speaker Larry Householder to ram through HB 6, a law that provided massive taxpayer bailouts for the Davis-Bessie and Perry nuclear plants, among other things.

Householder last year was convicted for his role in the scheme and sentenced to 240 months in federal prison.

“FirstEnergy has taken significant steps to move forward, including reconstituting our senior leadership team and instilling a culture of ethics, integrity and accountability at every level of the organization,” Young said. “Today, FirstEnergy is a different, stronger company with new leadership, a sound strategy and a best-in-class compliance program. We are well-positioned for the long term.”

Yost acknowledged changes made at FirstEnergy during his press conference, saying the company has new leadership and a new board who have gone through "an expansive internal reform effort."

What is FirstEnergy's future in Akron?

Yet those changes have prompted some to worry whether FirstEnergy will remain in Akron.

Chuck Keiper, executive director of the Northeast Ohio Public Energy Counci (NOPEC), said the local part of FirstEnergy — the lines that supply the electricity to homes and houses — will always be around, along with the jobs that install and maintain those lines.

But, he said, it’s a “valid concern about what happens to FirstEnergy corporate headquarters.”

Akron, he said, has proven it's a good corporate host city. But if FirstEnergy is sold, its multiple-state interests could be broken into pieces. Some could not only leave Akron, but Ohio.

He compared it to what is happening now with the Energy Harbor merger. Akron is expected to retain some employees, but the headquarters will move to Texas once regulators approve the merger.

Despite the uncertainty, Keiper said the indictments are a victory for consumers.

“We live in a country where people are supposed to have the power,” Keiper said.

The indictment shows that the former FirstEnergy executives, working with Randazzo, found a way to subvert that by paying off politicians.

“I hope that consumers would recognize just how important their vote for legislature is when it comes to this kind of thing,” he said. “They’re not supposed to be crooks in any way, shape or form."

Local law enforcement helps with state investigation

The federal investigation, which became public in July 2020, is ongoing.

Yost said Monday that he pushed for a state investigation to move forward because the statute of limitations for filing state charges on at least some of the reported crimes expires this year.

The Ohio Organized Crime Investigations Commission, which operates out of the attorney general's office, worked with local officials to investigate.

Yost and others did not allow the media Monday to ask any questions. It's unclear if others could be indicted on state charges.

Summit County Sheriff Kandy Fatheree said during the press conference that her office worked on the investigation with the Summit County Prosecutor's Office and the Bureau of Criminal Investigation, which is the state's crime lab.

"Today, we take another important step in making sure justice is served for these crimes," she said. "Today is a good day for Ohio."

Elliot Kolkovich, an assistant Summit County prosecutor, said his office appreciated the chance to work with Yost's office and the commission.

"We are doing our best to fight crime and corruption — not only in Summit County — but throughout the state," he said.

The 50-page indictment paints a devastating portrait of Jones and Randazzo, saying they "were literally as thick as thieves."

"Together, they would steal money from FirstEnergy, write legislative provisions worth unearned millions of dollars to FirstEnergy, legally guarantee continued FirstEnergy’s profitability and take over the state government in a way that allowed FirstEnergy to regulate itself," the indictment said.

Amanda Garrett can be reached at agarrett@thebeaconjournal.com. Stephanie Warsmith can be reached at swarsmith@thebeaconjournal.com or 330-996-3705.

This article originally appeared on Akron Beacon Journal: What indictment of former FirstEnergy executives could mean for Akron