Updated 4:55 p.m., 2/16/21
Cleveland is considering a lawsuit against FirstEnergy, accusing the Akron-based utility of undermining city-owned Cleveland Public Power, Mayor Frank Jackson said during a Tuesday budget presentation to city council.
Jackson alleged that FirstEnergy sought to create a monopoly at CPP鈥檚 expense. Both utilities provide service to customers in the city.
鈥淥ur primary concern is recovering the cost and the damages that have been perpetrated on Cleveland Public Power by FirstEnergy because of its unfair practices,鈥� Jackson told council. 鈥淪o we鈥檙e developing a lawsuit on that. We鈥檙e going directly at them on that.鈥�
Jackson made those comments to explain why he was not joining other Ohio cities in backing a state lawsuit over House Bill 6, which bailed out nuclear power plants that were spun off from FirstEnergy. Entering that suit could complicate the city鈥檚 own potential legal case, the mayor said.
FirstEnergy spokeswoman Jennifer Young replied to the mayor鈥檚 comments in an email to ideastream.
鈥淔irstEnergy looks forward to engaging in discussions with City of Cleveland leaders to resolve outstanding issues,鈥� she wrote. 鈥淲e support the City鈥檚 operation of Cleveland Public Power and are committed to fostering mutual respect for each other鈥檚 ability to serve customers.鈥�
Federal prosecutors allege that HB 6 was born out of a $60 million bribery scheme linked to 鈥淐ompany A,鈥� widely understood to be FirstEnergy.
CPP faces its own challenges. A 2019 consultant report, which was obtained by news organizations last year, found the utility to be 鈥渕ired in systemic, performance and financial issues.鈥� That report recommended rate increases, which the city has not committed to.
Cleveland City Council held a series of hearings on the public utility鈥檚 problems last year. This month, Council President Kevin Kelley authorized subpoenas .
Those document requests targeted two groups: Consumers Against Deceptive Fees, which has criticized CPP rates; and Generation Now, a so-called 鈥渄ark money鈥� group that has pleaded guilty in the federal corruption case.
The tension between CPP and FirstEnergy may play a prominent role in this year鈥檚 mayoral election. Dennis Kucinich, who fought with a FirstEnergy corporate predecessor as mayor in the 1970s, is considering a mayoral bid and has criticized the city on utility issues. Kelley, who has spearheaded council鈥檚 recent investigative moves, is also raising money for a potential run.
The city is trying to put a dollar figure on the alleged damage CPP has suffered, Jackson said. He didn鈥檛 specify when the city would file a complaint in court against FirstEnergy, saying that it would take time to prepare a case.
鈥淣ow, of course, it takes a while to put all your stuff together,鈥� the mayor said. 鈥淚鈥檓 just telling you what we鈥檙e going to do. Ain鈥檛 no mystery. And so we鈥檙e going after them.鈥�
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