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Citizen Action study: Utility investments paying off at State House

HOLD FOR RELEASE: Sunday, May 9, 1999 Shari Weir (216) 861-5200 Laura Yeomans (330) 343-9588 CLEVELAND -- Ohio electric utilities contributed $604,235 to statewide and legislative candidates and political parties in 1997-1998, as the debate over deregulation moved into full swing. A study released today by Ohio Citizen Action ranked FirstEnergy, the utility demanding $8 billion in "stranded costs," as the top political giver, with its board members, employees, lobbyists, and political action committees contributing $209,970. "The utilities are experts at Ohio's system of pay to play politics," said Shari Weir of Ohio Citizen Action. "And their investments seem to be getting the intended results -- a reworked bill that would dump billions of dollars more in 'stranded costs' on families and businesses, while undercutting real competition." The study showed that utilities were strategic with their contributions, directing the largest sums to decision-makers that will shape any deregulation bill. Then gubernatorial candidate Bob Taft was the top recipient of utility contributions, receiving $114,258. Members of the House Public Utilities Committee received a combined total of $32,876, while Senate Ways and Means Committee members got $18,329. In each case, FirstEnergy, with the most on the line in a competitive market, was the largest contributor. For added insurance, the four investor-owned utilities gave $191,350 to statewide political party committees, letting those committees decide how to channel funds. Dayton Power & Light, whose residential customers would pay the second highest monthly surcharge for stranded costs, was the top giver here, contributing $117,850, with $100,000 of that amount going to the Ohio Republican Party Campaign Committee. "As it stacks up right now, it looks like utilities have invested $604,235 to guarantee at least an $11 billion bailout. That's an 18,000% return on their investment." Weir said. Ohio Citizen Action is a statewide non-profit, non-partisan group that campaigns on issues from public health and pollution prevention to utility, insurance, and money in politics issues. The organization was founded in 1976.