The Icebreaker wind project called for the construction of six turbines approximately 8 miles offshore from Cleveland, as shown above. (Angelo Merendino/Corbis via Getty Images)
This story was originally published by Canary Media.
Six years ago, the Midwest appeared to be on track to build its first offshore wind farm in the Great Lakes. Then the project collapsed, with a civil lawsuit blaming Ohio utility FirstEnergy’s bribery scheme.
This corruption scandal is best known for what it led to 2019 passing the bill of the House of Representatives 6law which gutted state immaculate energy standards and forced consumers to pay nearly half a billion dollars in subsidies for uneconomic coal plants.
But the bribes also led to a regulatory decision that effectively blocked construction of the Icebreaker wind farm proposed off the coast of Cleveland, according to a lawsuit filed in July by Lake Erie Energy Development Corp. – a non-profit organization that has been trying to launch a immaculate energy project for over a decade.
The group, known as LEEDCo, is focusing on FirstEnergy’s bribes to Sam Randazzo, who previously headed the state’s Power Plant Siting Board and Public Utilities Commission. LEEDCo claims that these payments resulted in: 2020 ruling that placed unenforceable limits on the operating time of the Icebreaker project’s turbines. By the time the restrictions were lifted, financing for Icebreaker had collapsed. The nonprofit is suing FirstEnergy for monetary damages that could exceed $10010 million.
Icebreaker“represented a generational opportunity for the region,” said Jay Kelley, managing partner at Elk & Ełk and one of the lawyers representing LEEDCo. “It would position Cleveland as a national leader in offshore wind, create a up-to-date advanced manufacturing supply chain, support jobs and strengthen the region’s climate resilience and economic development goals.”
How the Icebreaker was thrown onto the ice
Would you like to get in touch?
Have a news tip?
The Icebreaker demonstration project called six turbines to be built approx 8 miles northwest of Cleveland. Although relatively compact, it is roughly 20 megawattimmaculate electricity would be enough to power thousands of homes. Equally significant to LEEDCo was proving that offshore wind energy production was possible on a freshwater lake. If so, public and private sector advocates hoped to capitalize on the region’s strengths in engineering, steel, maritime and other fields lend a hand the sector develop.
“It was a big dream to build an industry here,” recalls Lorry Wagner, who served as LEEDCo’s first executive director until his tardy retirement. 2019.
By then, the organization had spent millions of dollars on offshore wind research and hired developer Fred. Olsen Renewables will build the Icebreaker once approvals are obtained. IN 2018the project was approved by the federal government environmental review process. LEEDCo was also deeply engaged in conversations with several Ohio agencies, and this is what happened applied for permission from the Ohio Energy Siting Board.
Until May 2019LEEDCo agreed to various permit conditions, with support from the Power Siteing Board staff, two environmental groups, a trade association and the carpenters union. After an integrity hearing this fall settlementthe only obstacle to implementing the project was obtaining final approval from the board.
When this ruling finally came down in May 2020the board, chaired by Randazzo, imposed: completely up-to-date condition: Every night from March to December of each year, the Icebreaker’s turbines would have to run“pen” or shut up.
“When this came out, everyone was shocked,” Wagner said.
LEEDCo appealed to the Power Plant Location Board remove restrictions. Bipartisan group 32 legislators urged Randazzo to overturn the ruling. Republican Governor Mike DeWine’s office have filed similar complaints. Finally, the board REMOVED the“poisonous pill” recipe in October 2020although Randazzo remained highly critical of Icebreaker.
But until then, Fred. Olsen withdrew from the project. According to LEEDCo, the loss of both financial resources and technical expertise meant that it was no longer able to meet its obligations under the US Department of Energy grant. When Supreme Court of Ohio Later sustained permission without““poisonous pill” v 2022LEEDCo still had no up-to-date ones financing. December 1st 8, 2023LEEDCo said yes frozen Icebreaker.
What was FirstEnergy’s role?
Just days before LEEDCo halted Icebreaker, the federal government accused Randazzo on charges of bribery, fraud and criminal conspiracy HB 6 and other matters. He also came face to face criminal charges Ohio State and prospect lost his law license.
First Energy he admitted IN 2021 that he paid $4.3 million to one of Randazzo’s companies shortly before Governor DeWine appointed him chairman of the Public Utilities Commission. According to the federal court’s request, the payment was made in exchange for Randazzo taking official action HB 6along with“other specific legislative and regulatory priorities of FirstEnergy Corp., as requested and as opportunities arise.”
LEEDCo argues that stopping the Icebreaker project falls under the general category of other opportunities in which Randazzo supported FirstEnergy’s interests. The nonprofit claims in its filings that FirstEnergy believed competition from the Icebreaker project would cost its subsidiaries more than $5 million in lost income per year.
LEEDCo wants the Cuyahoga County Court of Common Pleas to award FirstEnergy pay monetary compensation for alleged misconduct: interference with LEEDCo’s contracts and business relationships, as well as corruption and conspiracy to violate Ohio law.
“The push for relief is not only warranted – it is necessary to create an entire LEEDCo after years of investment, planning and missed opportunities,” Kelley said, adding that when misconduct delays or disrupts a project like this, it hurts more than just one company. “This hinders the entire region’s ability to compete and innovate.”
FirstEnergy went to court about it dismiss the case in August, arguing that LEEDCo’s allegations were based on insufficient evidence and that too much time had passed since the alleged misconduct. FirstEnergy spokeswoman Jennifer Young said the company had no further comment beyond the documents filed.
LEEDCo filed a brief opposing the motion to dismiss in October. Judge Cassandra Collier-Williams scheduled the next conference in the case for tardy January.
If the case proceeds to pre-trial fact-finding, called discovery, LEEDCo will have access to various FirstEnergy documents and the nonprofit’s attorneys will be able to question people under oath. However, LEEDCo may have to present its case without the testimony of some key witnesses.
Randazzo died in April 2024so he cannot testify about his arrangements with FirstEnergy or any documents relating to the Icebreaker. Randazzo retweeted at least one document related to the Icebreaker to himself using an email address connected to one of his companies that received money from FirstEnergy.
The Fifth Amendment would likely protect former FirstEnergy executives Chuck Jones and Michael Dowling from making statements that could be used as evidence against them in criminal cases. FirstEnergy lawyers identified Jones and Dowling as the individuals who paid bribes In HB 6 scandal. Both men still face charges country AND federal court.
Icebreaker, for its part, has changed hands.
Maryland-based developer Mighty Waves Energy, which is not part of the lawsuit against FirstEnergy, acquired obtained the remaining permit rights for the project last year and is working on meetings with the power plant siting board pre-construction conditions. But even if it manages to do that and get enough people to agree to buy the power needed for the project, Mighty Waves could face headwinds, including high interest rates and the Trump administration’s continued attacks on renewable energy.
YOU MAKE OUR WORK POSSIBLE.
