Kaptur Introduces Ratepayer Justice and Commercial Power Accountability Act

“Utilities and utility executives have long engaged in corruption at public expense to turn an extra profit for themselves,” said Congresswoman Kaptur (OH-09). “Thousands of hardworking people across Northwest Ohio and many more across our Buckeye State were victims of the corrupt FirstEnergy scandal in which greedy utility executives gamed the system by bribing public officials, so they could in turn line their own pockets. Ratepayers were forced to pay over $1 Billion due to the executives’ actions and never got their money back. This new legislation creates a Federal system to return ratepayers’ their hard-earned money that was taken from them unjustly, and to support communities that have been wronged. By holding wealthy utilities, executives, and crooked politicians accountable for their malicious actions, we protect Americans’ wallets and prevent more scandals from taking place.”

Whether utilities and their executives bribe public officials or manipulate regulators to increase electric and gas bills, the cost of this corruption falls on the customer. Congresswoman Kaptur’s legislation provides for a new Ratepayer Justice Fund which will capture the monies that utilities and utility executives gained through increasing their customers’ rates and return that money to ratepayers in the form of direct relief payments and grants to harmed communities.

Business and residential victims would be able to file a claim for reimbursement through their annual Federal tax return and receive payment in the form of a refundable tax credit. Affected communities can also seek Ratepayer Community Restoration Grants from the US Department of Energy to repair economic damage and invest in infrastructure and clean energy. Congresswoman Kaptur has long championed accountability for FirstEnergy executives and to find ways to make ratepayers whole while preventing future malfeasance from utility companies.

Additionally, the bill requires mandatory jail time for any public official, utility executive, or lobbyist convicted of public corruption, fraud, or bribery in connection with utility misconduct.

Introduction of the bill comes on the heels of a mistrial last April in the public corruption case against the former FirstEnergy CEO and former FirstEnergy Senior Vice President, the one-year anniversary of FirstEnergy asking the Public Utilities Commission of Ohio to be free of any punitive damages for their admitted misconduct, and the seventh anniversary of House Bill 6 becoming law in the State of Ohio (July 23, 2019)—a centerpiece of the FirstEnergy scandal and the largest public corruption case in Ohio’s history.

It also comes as FirstEnergy is asking the Public Utilities Commission of Ohio for approval to increase rates for ratepayers for three years beginning next summer. “I will not stand for FirstEnergy increasing any Ohioan’s electricity bills until justice is delivered to ratepayers and we have a full accounting of the criminality that occurred at the expense of our people. Justice delayed is justice denied. It is time for Federal action,” Kaptur added.

A one pager on H.R. 9700, the Ratepayer Justice and Commercial Power Accountability Act, can be found by clicking here. A high-level summary of the bill is available by clicking here, and a section-by-section technical summary is available by clicking here. A full copy of the bill text can be found by clicking here.