COLUMBUS, Ohio — The Ohio Supreme Court ruled that a major utility company does not need to refund customers nearly $75 million after being accused of overcharging to support two unprofitable and scandal-ridden coal plants.
On Wednesday, the justices unanimously affirmed that the Public Utilities Commission of Ohio (PUCO) was allowed to let American Electric Power (AEP) collect subsidies in 2018 and 2019 for two Ohio Valley Electric Corporation (OVEC) plants. One of the 1950s-era plants is in Southern Ohio, and the other is in Indiana.
The PUCO said the charges were "prudent” and “in the best interests of ratepayers," as shutting down the plants could cause more costs for the customers.
"The commission determined that OVEC’s decision to employ a must-run strategy in 2018 and 2019 was prudent when viewed as of the time OVEC made its decision," Justice Pat Fischer wrote. "However, in hindsight, the commission recognized that an economic strategy may have been prudent for OVEC to adopt in some months."
The Ohio Consumers' Counsel (OCC), the watchdog agency that brought this case to the Supreme Court, argued that an independent auditor was asked by PUCO staff to soften draft language that decided that operating the coal plants was actually not in the best interest of ratepayers. The auditor removed that conclusion from the final public audit report. The justices dismissed this assertion, adding that the "evidence is not so one-sided."
Talking about hindsight
These OVEC plants are affiliated with the largest bribery scheme in Ohio history: House Bill 6.
RELATED: FirstEnergy corruption case ends with hung jury
The state is set to re-try former FirstEnergy executives Chuck Jones and Mike Dowling for bribery after their original six-week trial ended with a hung jury in late March. They are accused of bribing former PUCO Chair Sam Randazzo with $4.3 million to get beneficial rulings. They are also accused of providing $60 million more in exchange for passing H.B. 6, a billion-dollar bailout for the struggling company, resulting in higher utility bills for consumers.
Former Ohio House Speaker Larry Householder was sentenced to 20 years in prison for accepting $61 million in bribes from FirstEnergy, specifically the executives.
Although not the main beneficiary of H.B. 6, AEP still profited from it, as it codified the coal plant subsidy into state law.
The nuclear bailout was repealed years ago, but the OVEC subsidies were only eliminated in mid-2025.
RELATED: FirstEnergy continues effort to raise prices as Ohio repeals scandal-ridden bill
A study commissioned by the Ohio Manufacturers' Association found that in 2024 alone, these subsidies cost ratepayers roughly $200 million. The company lost more than $100 million the same year, so consumers are paying for plants that aren't profitable.
Present day
Energy bills have continued to climb across Ohio.
"We're talking about the difference between a couple $100 and $500," Catherine Turcer, an AEP customer and government accountability advocate, said.
Ratepayers like Turcer have been hoping for some relief, especially as AEP just raised its prices.
"$50 would definitely help most of us," she said.
If the high court had sided with the OCC, she would have received roughly $50.
But some lawmakers are still supportive of the coal plants.
"There are Ohioans who work at this plant for generations — their grandfathers worked there," former Ohio Speaker Jason Stephens said last year, when voting not to repeal the subsidies.
RELATED: Ohio lawmakers vote to repeal scandal-ridden FirstEnergy bill
Stephens said that it could cause people to lose jobs if the plants shut down, and he argued that the subsidies weren't part of the corrupt aspect of H.B. 6.
Householder's attorney Scott Pullins said the Supreme Court made the right decision, since those plants help energy diversification.
"We need to keep a balanced energy policy," Pullins said. "We need natural gas, we need coal, we need nuclear."
Turcer disagreed, saying that the plants were inefficient and corrupt.
"We deserve to pay bills we owe, not ones we don't," she said.
Still, she is glad she doesn’t have to pay for them moving forward.
What are the utilities up to now?
Utility companies, despite being in the news frequently due to the H.B. 6 scandal, have remained persistent in trying to raise prices on consumers.
In a story broken by us, AEP allegedly co-wrote legislation to allow electric utilities to own nuclear power, according to a leaked bill draft.
After our reporting, AEP has tried to work behind the scenes to make a more palatable version, according to Republican lawmakers.
RELATED: Amid utility corruption trial, leaked GOP bill would allow for electric companies to own nuclear
The company has repeatedly claimed that they need to increase its rates because of transmission costs. However, AEP has made record profits in 2025, and CEO Bill Fehrman allegedly made more than $36 million the same year, according to the Energy & Policy Institute.
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