How does that old maxim go? Once bitten, twice shy. When your trust is broken by lies, the liar cannot be trusted not to lie again. The Federal Energy Regulatory Commission needs to learn this lesson.
In a settlement approved the other day, utility liar FirstEnergy got fined $3,860,000 and agreed to "submit two annual compliance monitoring reports."
In a settlement approved the other day, utility liar FirstEnergy got fined $3,860,000 and agreed to "submit two annual compliance monitoring reports."
Each compliance monitoring report shall: (1) identify any known violations of Commission regulations that occurred during the applicable period, including a description of the nature of the violation and what steps were taken to rectify the situation; (2) describe all compliance measures and procedures FirstEnergy instituted or modified during the reporting period related to compliance with Commission regulations; and (3) describe all Commission-related compliance training that FirstEnergy administered during the reporting period, including the dates such training occurred, the topics covered, and the procedures used to confirm which personnel attended.
So FERC trusts that FirstEnergy will endeavor to create these reports honestly?
After FERC determined that
After FERC determined that
Over the course of several sets of data requests and three site visits, DAA requested various information related to FirstEnergy’s lobbying and governmental affairs expenses and accounting. FirstEnergy responded to those requests in both written and oral form throughout 2019 and early 2020, and submitted an affidavit from a senior FirstEnergy executive, which stated that FirstEnergy’s responses to the data requests were “to the best of [his] knowledge and belief . . . complete and accurate.” In March 2020, the DAA audit team previewed its preliminary audit findings for FirstEnergy.
On July 21, 2020, prior to the completion of the audit report but after DAA had previewed its preliminary audit findings, the U.S. District Court for the Southern District of Ohio unsealed a criminal complaint charging the then-Speaker of the Ohio House of Representatives and others with a racketeering conspiracy relating to the passage of Ohio House Bill 6.
While FirstEnergy provided DAA with certain information related to its lobbying and governmental affairs expenses and accounting during the Audit, it did not provide any information related to its efforts on Ohio House Bill 6 and associated payments or payments related to Generation Now, the Speaker of the Ohio House of Representatives, or the Chairman of the Ohio PUC.
In order to cover its dirty tracks on House Bill 6 bribes, FirstEnergy lied to FERC. It was only AFTER a racketeering investigation became known that FirstEnergy came clean with FERC and and admitted that it has submitted incomplete data responses. FirstEnergy LIED.
FERC thinks this is some sort of assurance that FirstEnergy won't lie again:
FERC thinks this is some sort of assurance that FirstEnergy won't lie again:
Each compliance monitoring report shall also include an affidavit executed by an officer of FirstEnergy stating that it is true and accurate to the best of his/her knowledge.
Except that the original lies also included an affidavit. It didn't stop FirstEnergy from lying in the first instance, why would it deter them from lying again? The only thing that seems to make FirstEnergy admit at least a few of its transgressions is the threat of criminal prosecution. Paying a mere pittance to the U.S. Treasury is a slap on the wrist. FirstEnergy spent way more than that on bribes.
And where are the refunds to ratepayers who may have paid a portion of FirstEnergy's bribes as a result of accounting "errors" in the company's favors? Who is going to monitor FirstEnergy's FERC rate filings for the next several years to make sure the company doesn't charge the $3.8M penalty to an account that is recovered from ratepayers, instead of putting it where it belongs in Account 426.3?
If lying about its finances to a regulatory agency was standard procedure, then it bears further investigation. FirstEnergy didn't get all that bribe money from shareholders... it got it from ordinary people who may be struggling to pay their electric bill.
Shame on you, FirstEnergy!
And shame on you, FERC, for trusting an admitted liar to tell you the truth in the future. Obviously FirstEnergy doesn't fear FERC, only jail time.
And where are the refunds to ratepayers who may have paid a portion of FirstEnergy's bribes as a result of accounting "errors" in the company's favors? Who is going to monitor FirstEnergy's FERC rate filings for the next several years to make sure the company doesn't charge the $3.8M penalty to an account that is recovered from ratepayers, instead of putting it where it belongs in Account 426.3?
If lying about its finances to a regulatory agency was standard procedure, then it bears further investigation. FirstEnergy didn't get all that bribe money from shareholders... it got it from ordinary people who may be struggling to pay their electric bill.
Shame on you, FirstEnergy!
And shame on you, FERC, for trusting an admitted liar to tell you the truth in the future. Obviously FirstEnergy doesn't fear FERC, only jail time.
| liar_settlement.pdf |
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