AEP to Pay $19 Million SEC Settlement Over HB 6 Scandal

January 24, 2025 — COLUMBUS, OH — American Electric Power (AEP) has agreed to pay $19 million to settle charges brought by the U.S. Securities and Exchange Commission (SEC) for misleading investors about the company’s role in the now-notorious House Bill 6 (HB 6) scandal.

The SEC alleged that AEP misled the public and its shareholders when it repeatedly stated that neither the company nor its subsidiaries had funded any “dark money” groups tied to former Ohio House Speaker Larry Householder. However, federal tax filings later revealed that AEP had in fact funneled $1.2 million into two such groups closely associated with Householder, who was later convicted in one of the largest public corruption scandals in Ohio history.

HB 6, which became law in 2019, provided a $1.3 billion ratepayer-funded bailout for two failing nuclear plants and rolled back Ohio’s renewable energy standards. It was later revealed to have been passed through a pay-to-play scheme orchestrated by Householder, who used dark money contributions to secure political support and push the legislation through the General Assembly.

The SEC settlement comes as AEP continues to face reputational fallout for its role in the scandal. Under the terms of the agreement, AEP neither admitted nor denied the allegations but agreed to pay the $19 million penalty and to enhance its transparency and disclosure practices.

Investor advocacy groups applauded the move, calling it a step toward accountability in the utility sector. “Investors have a right to know whether the companies they own are involved in unethical political activity,” said one watchdog group. “This settlement sends a message that public companies must be honest about their political involvement—especially when that involvement undermines public trust and distorts policymaking.”

AEP has maintained that the donations were made in support of energy policy and were lawful at the time. Still, the SEC's findings add another chapter to the HB 6 scandal’s far-reaching consequences, which have led to indictments, criminal convictions, and calls for sweeping energy policy reform across the Buckeye State.