Top Class Actions  |  July 29, 2022

Category: Closed Class Actions

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An electrical tower against a blue sky - First Energy settlement, ohio edison lawsuit
(Photo Credit: Madison Muskopf/Shutterstock)

First Energy and Energy Harbor agreed to a $49 million class action lawsuit settlement to resolve claims they influenced the passage of a law, raising the price of electricity for Toledo Edison, Cleveland Electric and Ohio Edison customers.

The class action lawsuit settlement benefits individuals who paid Toledo Edison, Cleveland Electric or Ohio Edison electricity rates, fees, tolls or other costs under HB 6 or another recovery mechanism approved by the Public Utilities Commission of Ohio (PUCO) under HB 6 between Jan. 1, 2020, and June 22, 2022.

Ohio House Bill 6 (HB 6) was passed in part to subsidize nuclear power plants in the state. However, the bill was the result of a nearly $61 million bribery scheme aimed to save two failing nuclear plants, according to the Federal Bureau of Investigation (FBI). 

First Energy and Energy Harbor allegedly sponsored Larry Householder as the leader of Ohio’s House of Representatives — giving him the platform to pass HB 6 and defend against a ballot initiative that would block the bill. Householder reportedly faces up to 20 years in prison for racketeering charges.

Although federal authorities took action and put a stop to the scheme, consumers took further action by filing a class action lawsuit against First Energy and Energy Harbor. The plaintiffs say they were overcharged for electricity based on HB 6 — a law passed to bail out failing nuclear plants. 

According to the class action lawsuit, the plaintiffs and other Ohioans wouldn’t have overpaid for electricity if the defendants didn’t violate the Racketeer Influenced and Corrupt Organizations Act (RICO) by illegally influencing the passage of HB 6.

First Energy and Energy Harbor haven’t admitted any wrongdoing but agreed to resolve these allegations with a $49 million settlement. 

First Energy will contribute $37.5 million to the settlement, and Energy Harbor will contribute $11.5 million.

Under the terms of the settlement, class members can receive a cash payment based on the amount they paid in HB 6 fees and other charges. Payments will vary, but will not exceed the total amount paid for these fees. 

According to the settlement website, class members can provide an email address to the settlement administrator if they did not receive an email notice. Through email, they will be provided with several digital payment options or the option to request a physical settlement check.

The deadline for exclusion and objection is Oct. 5, 2022. 

The final approval hearing for the First Energy and Energy Harbor settlement is scheduled for Nov. 9, 2022.

No claim form is required to benefit from the settlement. Class members will automatically receive settlement benefits if they do not exclude themselves.

Who’s Eligible

The settlement benefits individuals who paid Toledo Edison, Cleveland Electric or Ohio Edison electricity rates, fees, tolls or other costs under HB 6 or another recovery mechanism approved by the Public Utilities Commission of Ohio (PUCO) under HB 6 between Jan. 1, 2020, and June 22, 2022.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Exclusion and Objection Deadline

10/05/2022

Case Name

Smith v. FirstEnergy Corp., et al., Case No. 2:20-cv-3755, in the U.S. District Court for the Southern District of Ohio

Emmons v. FirstEnergy Corp., et al., Case No. CV-20 935557, in the Cuyahoga County Court of Common Pleas

Final Hearing

11/09/2022

Settlement Website
Claims Administrator

Ohio Electricity Litigation
c/o A.B. Data, Ltd.
P.O. Box 173105
Milwaukee, WI 53217
info@OhioElectricityLitigation.com
877-888-9895

Class Counsel

Marvin A Miller
MILLER LAW LLC

James L Ward Jr
MCGOWAN HOOD & FELDER LLC

Dennis E Murray Jr
MURRAY & MURRAY CO LPA

Defense Counsel

Marion H Little Jr
ZEIGER TIGGES & LITTLE LLP

Michael R Gladman
Tiffany D Lipscomb-Jackson
JONES DAY

David Axelrod
Timothy Katsiff
BALLARD SPAHR LLP

John F McCaffrey
TUCKER ELLIS LLP

Carole Rendon
Terry Brennan
BAKERHOSTETLER

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45 thoughts onFirst Energy, Energy Harbor electricity rates $49M class action settlement

  1. Susan Tafoya says:

    I accidentally deleted the email. How can I claim the refund?

  2. Susan Yingling says:

    I haven’t heard or received my payment

  3. Lynn says:

    I only received $7.85? It seems like it should be more.

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