Prosecutors step in on regulatory case, blocking immunity for ex-executive Eileen Mikkelsen
COLUMBUS, Ohio – State prosecutors moved to squash a looming deposition of a former top official of FirstEnergy Corp., signaling they’re considering new charges in a long simmering bribery investigation.
Eileen Mikkelsen, formerly the company’s vice president of rates and regulatory affairs, is scheduled to testify under oath in a regulatory investigation early next month, one of seven since-ousted company officials subpoenaed in the case before the Public Utilities Commission of Ohio. But Ohio Deputy Attorney General Carol O’Brien asked the regulators to back off, warning that the deposition could grant her immunity, preventing prosecutors from charging her with any crimes.Under state law, witnesses subpoenaed by the PUCO must testify, even if their answers are self-incriminating. But conversely, prosecutors can’t charge them for “any transaction or matter concerning which he has testified.” A spokeswoman for Attorney General Dave Yost declined to comment on the filing. Cleveland.com and The Plain Dealer reached out to an attorney for Mikkelsen. If the prosecutors were to seek charges, Mikkelsen would be the ninth person criminally accused in what prosecutors have called the biggest bribery case in state history.as “her inaction regarding the amendment in 2015 of a previously disclosed purported consulting agreement” with Sam Randazzo, who in 2019 was appointed by Gov. Mike DeWine as chairman of the Public Utilities Commission of Ohio. A company solely owned by Randazzo received more than $22 million from FirstEnergy between 2010 and his February 2019 appointment to become head of the regulatory body responsible for regulating power companies like FirstEnergy. FirstEnergy has admitted that its former executives – CEO Chuck Jones and senior vice president of external affairs Mike Dowling – paid Randazzo a $4.3 million bribe in January 2019 in exchange for preferable rulings in regulatory cases and lobbying help supporting a bailout for the company’s nuclear plants. State prosecutorsJones and Dowling, who have pleaded not guilty, say the money wasn’t a bribe but a termination fee on their 2015 consulting contract with Randazzo. In exchange for the money from the consulting contract, Randazzo, who represented a group of large and influential industrial companies buying energy in bulk, agreed not to oppose FirstEnergy’s rate case at the PUCO. The company is now cooperating with state and federal prosecutors. Its current lawyers say the company was under no legal obligation to pay Randazzo the $4.3 million, but Jones and Dowling did anyway.of accepting tens of millions in bribes, enriching him both personally and politically, in exchange for his work as the driving inside force behind a $1.3 billion bailout that would solely benefit FirstEnergy. Prosecutors say Jones and Dowling engineered a scheme to discreetly pay both Householder and Randazzo to do the company’s bidding from the inside.to the PUCO, FirstEnergy – with Mikkelsen listed as a witness – wrote that it entered “no contracts and/or agreements” involving its PUCO rate case at the time. Texts and emails released via the ongoing criminal, civil and regulatory investigations into the matter show Mikkelsen helped broker the 2015 contract. For instance, in March 2015, another company executive sent her an email from Randazzo with the subject line “CONFIDENTIAL SETTLEMENT DISCUSSIONS” outlining issues around FirstEnergy’s Electric Security Plan. By November of that year, Dowling texted her to say that “Sam is on board with the agreement” and telling her some of the terms. “Great,” she replied, later getting word that Randazzo had filed the agreed-upon non-opposition letter in exchange. In February 2020, company lobbyist Justin Biltz sent a text to Mikkelsen to tell her that “Mike talked to Sam Randazzo today” about FirstEnergy’s previously scheduled 2024 rate review, which company officials believed would force them to lower costs for customers. Biltz told Mikkelsen that “Sam threw out some ideas” that they should learn more about.A ruling from Randazzo ultimately nixed the rate review, prompting celebration inside the company and a jump in its share price. Prosecutors have framed this as one of the key elements of the Randazzo bribe.they believe the office of U.S. Attorney for the Southern District of Ohio Ken Parker has finished its probe, although Parker has denied this and said an investigation is ongoing. But the state prosecutors’ interest underscores that the prosecution continues even six years after FirstEnergy paid Randazzo the alleged bribe. At Parker’s behest, the PUCO for 18 months froze its investigation into FirstEnergy’s political operations. The Ohio Consumers’ Counsel, a state agency that represents ratepayer interests, recently began a stretch of seven long-sought interviews of former FirstEnergy lawyers and lobbyists.– refused to testify. State law says anyone subpoenaed by the PUCO must testify, even if the answers may be incriminating. In exchange, those who testify can’t have their words held against them in a state case. But attorneys for both men said this wouldn’t shield them from federal prosecution. A PUCO judge is set to rule on whether the Fifth Amendment claims are legitimate. A lawyer for Ty Pine, another former lobbyist, indicated he too would refuse to answer questions. Maureen Willis, who runs the consumers counsel, said Mikkelsen’s deposition will be canceled. While the prosecution blocked the nuclear bailout, she emphasized that Ohioans are still paying for a separate coal bailout that was tacked onto HB6 as a political concession. “Justice continues to unfold in the ongoing House Bill 6 scandal. While we seek answers for FirstEnergy’s utility consumers, we will not interfere with the state’s criminal investigation,” she said. “We continue to push for justice for all Ohioans through repeal of the $500,000 per day coal subsidies consumers still pay under tainted House Bill 6.” The recent depositions, which in an unusual twist are open to the public, are also looming for FirstEnergy’s former vice president Dennis Chack, CEO Steven Strah, and senior vice president and chief legal officer Robert Reffner. Householder is currently serving a 20-year sentence. He was convicted alongside Matt Borges, a lobbyist hired by the company, who was sentenced to five years. Two conspirators – political operative Jeff Longstreth and lobbyist Juan Cespedes – pleaded guilty and testified against Borges and Householder. Neither man has been sentenced in the nearly two years since they testified, raising questions of whether they’re being held in reserve for another case. Lobbyist Neil Clark was also accused of participating in the scheme. He died by suicide before trial in 2021.After narrow vote, Ohio accepts $17 million increase from feds for refugee aidJake Zuckerman covers state politics and policy for Cleveland.com and The Plain Dealer. If you purchase a product or register for an account through a link on our site, we may receive compensation.and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our
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