Ohio’s Utility Bailout Scandal: How House Bill 6 Backfired
Ohio is waking up to find that the rules guiding electricity aren’t just outdated, they’ve been twisted in ways you’d never expect. At the Alliance for Competitive Power (ACP), we see it firsthand when monopoly power tightens its grip.
Today, we’re pulling back the curtain on Ohio’s House Bill 6 (HB 6) scandal a story of backroom deals, million-dollar maneuvers, and a fight to make sure your community doesn’t pay the price. As of January 2026, the fallout continues to ripple through Ohio's courtrooms and utility bills.
Behind Closed Doors: What Really Happened with HB 6?
When House Bill 6 passed in the summer of 2019, its supporters promised to protect jobs and keep essential power plants humming. The bill directed roughly $1 billion in subsidies to prop up ailing nuclear and coal plants, a sum that would be extracted directly from state ratepayers.
But the promises didn’t match reality. Prosecutors uncovered the most sweeping bribery and money-laundering scheme in Ohio’s history. This "help" ended up costing citizens deeply, shaking faith in the integrity of Ohio's energy system.
How the Bailout Fueled Corruption
This wasn’t a typical policy debate. HB 6 was greased through the legislature via a $60 million dark money scheme funded primarily by FirstEnergy. The company used these funds to:
Bankroll "Team Householder" candidates who would vote for the bailout and support Larry Householder’s bid for House Speaker.
Thwart a public referendum that sought to let voters decide on the bill.
Lobby officials behind closed doors to ensure a favorable regulatory environment.
The scheme's architect, Larry Householder, was ultimately convicted of racketeering and sentenced to 20 years in prison. As of January 2026, Householder remains in federal prison, though he continues to appeal his conviction and faces additional state-level charges.
Paying the Price: How Ratepayers Got Burned
The human impact of HB 6 remains a heavy burden for Ohio families and businesses. While the nuclear subsidies were eventually repealed, subsidies for two aging coal plants (the Kyger Creek and Clifty Creek plants) remained on bills until August 2025. Between 2020 and 2025, Ohio utility customers propped up these failed plants to the tune of over $445,000 per day, totaling more than $500 million.
Recent legal victories have brought some relief. On January 7, 2026, the Public Utilities Commission of Ohio (PUCO) approved a landmark $275 million settlement for FirstEnergy customers.
Ohio Edison customers can expect a monthly bill decrease of about $13.27.
Toledo Edison customers will see a decrease of roughly $17.81.
The Illuminating Company customers will see a modest decrease of $1.02.
Monopolies vs. Competition: The Energy Choice Alternative
The HB 6 saga lays bare the risks of allowing a monopoly utility to write its own rules. When a single company has no rivals, it can prioritize political influence over customer service and innovation.
At ACP, we champion open, competitive energy markets instead. Competition keeps providers honest because they have to win your business. In competitive states, we see:
Lower long-term costs as providers compete to offer the best rates.
Faster innovation in clean energy and efficiency programs.
Greater transparency, as companies must open their books to compete fairly.
The Legal Echo: 2026 Updates
The story is far from over. As of mid-January 2026:
Larry Householder is scheduled to stand trial for state-level criminal charges including theft in office and money laundering on June 8, 2026.
Former FirstEnergy Executives Chuck Jones and Michael Dowling are facing their own criminal trials, with high-profile state leaders potentially being called to testify.
Dark Money Investigations continue as watchdogs work to prevent future scandals by demanding stricter campaign finance and lobbying transparency.
Charting a Better Path: Real Reform for Ohio
To prevent another scandal, we must focus on accountability. ACP recommends:
Total Repeal: Ending any remaining subsidies for unprofitable, outdated coal plants.
Stricter Ethics: Banning shadowy "dark money" contributions and increasing oversight of utility political spending.
Advancing Competition: Moving away from a system that rewards utilities for spending more of your money and toward one that rewards them for saving it.
Frequently Asked Questions
How much will I get back from the FirstEnergy settlement? Most residential customers using 1,000 kWh per month will receive approximately $65.61 in bill credits over a three-month period starting in early 2026.
Is HB 6 still active? Most of the nuclear subsidies are gone, but the subsidies for older coal plants (OVEC) were only recently addressed, and some "riders" on your bill may still be influenced by legacy legislation.
How can I help prevent this? Support legislation that promotes retail energy choice and demands transparency in utility lobbying. Visit our news page for the latest advocacy tools.
Conclusion: The HB 6 scandal is a wake-up call. The road to recovery leads toward a more honest system where consumers, not corporations, hold the power.
