Bribery Scandal Forces Top Ohio Utility Regulator to Resign

Sam Randazzo has stepped down from his position as the head of the Ohio Public Utilities Commission (PUC) due to a federal bribery scandal involving subsidies for 2 nuclear power plants.  The situation came to light in July 2020 and has created a ripple effect impacting not only Randazzo, but also the nuclear plants’ current and previous owner.

Specifics of the Bribery Scandal

In July 2020, the FBI arrested Ohio House Speaker Larry Householder and four political associates due to a whopping $61 million in bribes they received from FirstEnergy to bail out the failing nukes, which were formerly owned by a FirstEnergy subsidiary but were spun off into a separate entity called Energy Harbor Corp. 

FirstEnergy ultimately admitted that its former executives “made an improper payment” in the first half of 2019.  These executives, one of which was CEO Charles Jones, were terminated.  One day after this FirstEnergy admission, Randazzo stepped down.  His home was also raided by the FBI on 11/16. 

These presumably unscrupulous people were not the only ones impacted by the allegations.  FirstEnergy’s stock price declined 6% following the news, Bank of America downgraded the company’s rating, and Fitch Ratings reduced the company to junk status.  Multiple lawsuits against the company have also been initiated. 

This type of event highlights the need for an effective Crisis Management Plan.