AKRON, Ohio -- FirstEnergy Corp. stock prices fell sharply Tuesday as reports emerged of a federal complaint accusing Ohio House Speaker Larry Householder and four others of accepting more than $60 million in bribes from the utility company.
FirstEnergy is not charged as of Tuesday in connection with the federal racketeering case, which accuses Householder and four others of accepting bribes in exchange for securing a $1.3 billion public bailout for the utility company, according to the complaint.
Even still, the utility company’s stock fell sharply as news of Householder’s arrest and the federal racketeering case emerged. FirstEnergy’s stock price hovered near $41.50 per share Tuesday morning, but more than 16 percent to roughly 34.50 just before 3:30 p.m., according to data from MarketWatch.
FirstEnergy Corp. was previously the parent company of FirstEnergy Solutions, the owner of two Ohio nuclear power plants that benefitted from a $1 billion-plus ratepayer bailout through House Bill 6. FirstEnergy Solutions changed its name to Energy Harbor when it emerged from bankruptcy last year, and is now owned by its creditors and entirely separate from FirstEnergy Corp.
The controversial campaign to pass HB6 included a wave of campaign donations from FirstEnergy Corp., as well as a multi-million-dollar ad campaign paid for with dark money.
Householder, former Ohio Republican Party Chair-turned-consultant Matt Borges, prominent lobbyist Neil Clark, FirstEnergy Solutions lobbyist Juan Cespedes and Householder aide Jeff Longstreth have all been indicted in the federal racketeering case.