Ohio Citizen Action reports on political-action donations

Sunday, May 09, 1999

By Alan Johnson
Dispatch Statehouse Reporter

Ohio electric utilities funneled $604,235 to candidates and political parties over the past two years, much of it aimed at influencing an electricity deregulation bill, a report by Ohio Citizen Action charges.

Akron-based FirstEnergy, the most vocal utility critic of plans to open Ohio's $11 billion electricity market to competition, gave the most, $209,970, the nonpartisan citizen advocacy group reported.

Columbus-based American Electric Power gave the least -- $78,857.

The cash went to candidates for statewide and legislative office as well as both political parties, with Republicans -- who control most statewide offices and both houses of the legislature -- receiving more.

Citizen Action called the utility money evidence of "pay-to-play politics'' in state government.

But state Rep. Priscilla D. Mead, R-Upper Arlington, the prime sponsor of House Bill 5, the electricity deregulation measure, said if that's the case, utilities aren't getting their money's worth.

"I think if you asked the utilities if it was money well spent, I think they'd say it's not,'' Mead said.

Ohio Citizen Action reported Mead, chairwoman of the House Public Utilities Committee, received $2,450 from utilities in 1997-98. That was less than half the $5,922 received by Rep. Lynn E. Olman, R-Maumee.

State Sen. Bruce E. Johnson, R-Columbus, the other main deregulation sponsor and co-chairman of the Senate Ways and Means Committee, received $250 over the two-year period, the group reported.

Utilities oppose the Johnson-Mead proposals, arguing they are unfair and flawed.

FirstEnergy has threatened to file a lawsuit to strangle deregulation for years if the legislature approves the Johnson-Mead plan.

Citizen Action said its study showed that the utility money -- which came not from the companies themselves but from political action committees, board members, employees and lobbyists -- was strategically aimed at influencing the deregulation debate.

"It looks like utilities have invested $604,235 to guarantee at least an $11 billion bailout,'' said Shari Weir of Ohio Citizen Action.

Weir was referring to "stranded costs,'' the high-cost investments companies hope to recover from consumers before the onset of competition. Stranded costs are estimated at $10 billion to $17 billion.

FirstEnergy spokesman Ralph DiNicola offered no apologies for his company's campaign contributions.

"We are working to protect the interests of our shareholders, our employees and our customers,'' DiNicola said.

He said big industry and retail merchants also make big campaign contributions to influence state legislation.

A statement issued by Robert H. Snyder of the Ohio Electric Utility Institute, representing the utilities, called the Citizen Action report misleading and one-sided.

"Legislative efforts to restructure Ohio's electric industry will directly and dramatically impact our companies, our employees and our shareholders,'' Snyder said. "It is only natural that we have taken a strong interest in the proposed legislation.''