Released July 23, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--In just one week, two U.S. states were rocked by allegations that the House Speakers for their legislatures were involved in "pay-to-play" schemes with their states' top utilities. Residents in Ohio and Illinois are used to paying monthly bills from FirstEnergy Solutions and Commonwealth Edison (ComEd), respectively, and no doubt will be demanding answers after prosecutors alleged the companies had lined the pockets of Republican and Democratic leaders with "dark money." Industrial Info is tracking progress at all active plants owned by FirstEnergy Solutions and ComEd in Ohio and Illinois, respectively.
FBI agents arrested Ohio House Speaker Larry Householder (R) and four associates Tuesday morning in connection with a $60 million bribery scheme allegedly involving state officials. According to NPR, prosecutors allege that an unnamed company--by all appearances FirstEnergy Solutions, a subsidiary of FirstEnergy Corporation (NYSE:FE) (Akron, Ohio)--paid approximately $60 million to nonprofit Generation Now between March 2017 and March 2020. Federal prosecutors say they have a recording that shows Generation Now secretly was controlled by Householder, according to the Cincinnati Enquirer.
In exchange for the money, prosecutors say Householder and his associates aggressively pushed for the passage of 2019's House Bill 6, which benefited nuclear and coal-fired generation in the state, and the blocking of a ballot initiative to overturn the legislation, according to the Cincinnati Enquirer.
Last July, Ohio's legislature approved a bill that provided as much as to $150 million per year over a 2021-2027 timeframe to FirstEnergy Solutions, the bankrupt owner of Ohio's Perry and Davis-Besse nuclear power plants. It also grants $50 million per year through 2030 to a pair of coal-fired power plants owned by the Ohio Valley Electric Corporation (Piketon, Ohio). Republican Governor Mike DeWine quickly signed the bill into law.
House Bill 6 spurred a wave of opposition from environmental groups and Ohioans concerned about the use of subsidies, many of whom referred to the legislation as a "bailout." For more information on the bill, its defenders and its critics, see July 25, 2019, article - Ohio Enacts Law Subsidizing Nuclear, Coal and Solar Plants.
Click here for information on the Perry and Davis-Besse nuclear power plants, and click here for a list of other power plants in Ohio owned by FirstEnergy and its subsidiaries.
"Because of the nature of these charges, it will be impossible for Speaker Householder to effectively lead the Ohio House of Representatives; therefore, I am calling on Speaker Householder to resign immediately," DeWine said on Twitter following the arrest. "This is a sad day for Ohio."
FirstEnergy said it received subpoenas on Tuesday in connection with the investigation. "We are reviewing the details of the investigation, and we intend to fully cooperate," it said.
Industrial Info is tracking $721 million worth of project activity by FirstEnergy, including $17 million worth in Ohio.
Illinois Speaker's Half-Century Career Faces Shutdown
Illinois House Speaker Michael J. Madigan (D), a fixture in state politics for nearly 50 years, has been implicated by federal prosecutors as the beneficiary of a nearly decade-long bribery and influence scheme by ComEd, a utility subsidiary of Exelon Corporation (NYSE:EXC) (Chicago, Illinois), according to the Chicago Tribune. Illinois is home to 11 nuclear power reactors, the most of any U.S. state, at six power plants owned by Exelon.
ComEd agreed on Friday to pay a $200 million fine and cooperate with prosecutors after it admitted to providing jobs and vendor subcontracts for Madigan's political allies and employees, even when those people performed little or no work, according to the Chicago Tribune. Prosecutors said ComEd curried favor with Madigan to influence regulatory rate-making legislation between 2011 and 2019, and that associates of Madigan ultimately received $1.32 million from the utility.
As of Wednesday, Madigan had not been charged with any wrongdoing, although federal prosecutors said in their complaint that the public official at the heart of the investigation "was the Speaker of the [Illinois] House of Representatives."
"If these allegations of wrongdoing by the speaker are true, there is no question that he will have betrayed the public trust and he must resign," said Illinois Governor J.B. Pritzker (D), according to The Star Tribune.
Industrial Info is tracking $270 million worth of projects in Illinois from Exelon and its subsidiaries. These comprise a series of refueling outages, ranging in value from $18 million to more than $25 million, at all six of the state's nuclear power plants. Click here for a list of projects.
Click here for a list of power plants in Illinois owned by Exelon and its subsidiaries. In addition to the nuclear plants, these include a solar-energy facility and power transmission substations.
One bit of good news for the people of Illinois: ComEd is barred from recovering its $200 million fine through its rate base. Instead, the burden will fall on shareholders.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
FBI agents arrested Ohio House Speaker Larry Householder (R) and four associates Tuesday morning in connection with a $60 million bribery scheme allegedly involving state officials. According to NPR, prosecutors allege that an unnamed company--by all appearances FirstEnergy Solutions, a subsidiary of FirstEnergy Corporation (NYSE:FE) (Akron, Ohio)--paid approximately $60 million to nonprofit Generation Now between March 2017 and March 2020. Federal prosecutors say they have a recording that shows Generation Now secretly was controlled by Householder, according to the Cincinnati Enquirer.
In exchange for the money, prosecutors say Householder and his associates aggressively pushed for the passage of 2019's House Bill 6, which benefited nuclear and coal-fired generation in the state, and the blocking of a ballot initiative to overturn the legislation, according to the Cincinnati Enquirer.
Last July, Ohio's legislature approved a bill that provided as much as to $150 million per year over a 2021-2027 timeframe to FirstEnergy Solutions, the bankrupt owner of Ohio's Perry and Davis-Besse nuclear power plants. It also grants $50 million per year through 2030 to a pair of coal-fired power plants owned by the Ohio Valley Electric Corporation (Piketon, Ohio). Republican Governor Mike DeWine quickly signed the bill into law.
House Bill 6 spurred a wave of opposition from environmental groups and Ohioans concerned about the use of subsidies, many of whom referred to the legislation as a "bailout." For more information on the bill, its defenders and its critics, see July 25, 2019, article - Ohio Enacts Law Subsidizing Nuclear, Coal and Solar Plants.
Click here for information on the Perry and Davis-Besse nuclear power plants, and click here for a list of other power plants in Ohio owned by FirstEnergy and its subsidiaries.
"Because of the nature of these charges, it will be impossible for Speaker Householder to effectively lead the Ohio House of Representatives; therefore, I am calling on Speaker Householder to resign immediately," DeWine said on Twitter following the arrest. "This is a sad day for Ohio."
FirstEnergy said it received subpoenas on Tuesday in connection with the investigation. "We are reviewing the details of the investigation, and we intend to fully cooperate," it said.
Industrial Info is tracking $721 million worth of project activity by FirstEnergy, including $17 million worth in Ohio.
Illinois Speaker's Half-Century Career Faces Shutdown
Illinois House Speaker Michael J. Madigan (D), a fixture in state politics for nearly 50 years, has been implicated by federal prosecutors as the beneficiary of a nearly decade-long bribery and influence scheme by ComEd, a utility subsidiary of Exelon Corporation (NYSE:EXC) (Chicago, Illinois), according to the Chicago Tribune. Illinois is home to 11 nuclear power reactors, the most of any U.S. state, at six power plants owned by Exelon.
ComEd agreed on Friday to pay a $200 million fine and cooperate with prosecutors after it admitted to providing jobs and vendor subcontracts for Madigan's political allies and employees, even when those people performed little or no work, according to the Chicago Tribune. Prosecutors said ComEd curried favor with Madigan to influence regulatory rate-making legislation between 2011 and 2019, and that associates of Madigan ultimately received $1.32 million from the utility.
As of Wednesday, Madigan had not been charged with any wrongdoing, although federal prosecutors said in their complaint that the public official at the heart of the investigation "was the Speaker of the [Illinois] House of Representatives."
"If these allegations of wrongdoing by the speaker are true, there is no question that he will have betrayed the public trust and he must resign," said Illinois Governor J.B. Pritzker (D), according to The Star Tribune.
Industrial Info is tracking $270 million worth of projects in Illinois from Exelon and its subsidiaries. These comprise a series of refueling outages, ranging in value from $18 million to more than $25 million, at all six of the state's nuclear power plants. Click here for a list of projects.
Click here for a list of power plants in Illinois owned by Exelon and its subsidiaries. In addition to the nuclear plants, these include a solar-energy facility and power transmission substations.
One bit of good news for the people of Illinois: ComEd is barred from recovering its $200 million fine through its rate base. Instead, the burden will fall on shareholders.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
