FirstEnergy is shaking in their boots over HB6 ballot initiative

5 years ago
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Bonanza for bondholders

FirstEnergy Solutions argued HB 6 was a jobs bill that would save some 1,300 workers at its two uneconomic nuclear reactors. The utility simultaneously tried to gut the pensions of those very workers who appeared in countless commercials pleading the case for FirstEnergy Solutions. The real beneficiaries of HB 6 are the Wall Street hedge funds that gambled on loans to FES, hoping their lobbyists could buy a legislative bailout that would lead to huge profits. According to a managing director at Chapman Strategic Advisors, “If passed, the legislation would create upside for holders of roughly $2 billion of debt issued by FirstEnergy.” 

Put another way, Wall Street is trying to milk Ohio’s Main Streets for all they’re worth. Maybe that explains why FES’s advertisements and actions have become so outlandish.


Desperate rhetoric

FirstEnergy and its allies seem a little scared — $3.3 million and counting scared. That’s how much they’ve spent recently on commercials trying to block a voter referendum that would take away their bailout. Offering no evidence, their commercials and blanket-mailed flyers suggest the removal of their subsidy would allow the Chinese government to take over Ohio’s electricity grid and steal our personal information. The argument is a bit funny since a Chinese state bank actually owns a $111 million share of FirstEnergy. 

Moving beyond frantic rhetoric, the utility even hired “blockers” to discourage Ohioans from signing a petition to place the referendum on the November 2020 ballot. One such “blocker” has been charged with assaulting a signature gatherer and smashing his phone.

The Columbus Dispatch calls the FES claims and actions “garbage” and a “crude and unprincipled assault on the democratic process.” The Chinese threat, it continues, “is a ridiculous invention and an insult to voters’ intelligence.”
 

Unusual

It’s important to remember that it’s not usual for a bankrupt utility and its allies to spend $60 million on a legislative campaign to get a state bailout law passed. It’s also not usual for them to spend millions more to block the signature collecting that would allow Ohioans to vote on that massive subsidy. “I’m a disinterested observer, and the amount of money being spent around this issue is remarkable, and beyond anything in modern Ohio history,” said Mark Weaver, a Republican consultant who’s worked on more than a dozen state issue campaigns.
 
Why, you might ask? Perhaps the most succinct answer comes from Dale Butland, a former chief of staff to Sen. John Glenn, who calls the FirstEnergy campaign “breathtakingly dishonest. … I think they’re scared to death that this will go to the ballot. So I think they’re pulling out all the stops to keep it from getting there.”

FirstEnergy and its Wall Street creditors will claim almost anything, and hire almost anyone, in order to protect their $1 billion bailout. They know Ohioans are not on their side.

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