OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Lakewood Committee of the Whole Meeting on First Energy Litigation - July 27, 2026

Council MeetingsMonday, July 27, 2026
BodyLakewood, Ohio
SessionCouncil Meetings
DateMonday, July 27, 2026
StatusFILED
Video Record
0:00 / 1:56:22

Transcript — Verbatim
0:01

All right.

0:02

We will call Committee of the Whole to order.

0:16

So first I will move to approve the minutes of the June 15th Committee of the Whole without the necessity of a reading.

0:22

Second.

0:23

Motion's been made and seconded.

0:24

Discussion.

0:25

Hearing none.

0:26

All those in favor?

0:28

Aye.

0:28

And that motion passes.

0:31

We have one item on the docket tonight, which is the communication that I submitted, outlining the timeline of litigation with First Energy, and also setting us up for tonight's discussion with the law department to provide us an overview of those legal matters addressing the First Energy's failure to provide reliable electricity and accurate and timely communication.

1:04

And then so tonight, as you thank you all for being here, members of the public as well.

1:10

Tonight you'll hear some of the steps that have already been taken.

1:15

So those are a little bit complicated.

1:17

I think sometimes they're almost set up to be intentionally complicated to make it harder for us to hold the utility companies accountable.

1:26

So we'll be hearing about those as well as asking our law departments some questions about potential next steps.

1:34

Some of those questions I intend to have as much of the conversation as possible in the public because part of the whole reason for doing this is to help all of us understand and help all of our neighbors understand the legal process that we've taken and what we can do.

1:50

Some of that we will have to have an executive session to preserve the public interest because it will be with our legal council.

1:58

So as much as possible though, we'll have in front of in front of all of you.

2:02

We're also joined tonight by members of the Office of Ohio Consumers Council.

2:06

So thank you for being here with us, uh JP Blackwood and Tom Broadbeck.

2:11

Uh we'll be hearing from them after we hear from the law department.

2:14

And uh I just want to point out before we get started that this is an ongoing effort.

2:21

Uh it's been over a year since uh Mayor George and I and Rep Raider and Councilman Casey met with First Energy representatives about what steps they were going to be taking.

2:33

And were it not for the legal action uh that the city has taken, we wouldn't be seeing any progress.

2:41

And I know that most of us aren't experiencing a lot of progress.

2:44

Uh today I did hear back from our first energy rep about some of the improvements that have been taken place that they are working on.

2:54

Um, instead of trust but verify, it's a little bit more in the just verify stages.

3:02

So uh so but we they are being asked to make these changes ordered to by the Public Utilities Commission of Ohio.

3:10

Uh and then we also want to be diligent in our duty to making sure that we are following up on them as well.

3:17

So that's the plan for tonight.

3:19

We'll uh have the presentation.

3:21

Council members will be asking questions, I'm sure, uh, of both entities, and then we will uh uh we'll take public comment.

3:29

So if you haven't already signed in for public comment and you would like to, you may do so any time uh before then.

3:35

I'll also call for anyone else who would like to make public comment who hasn't yet signed in.

3:39

Uh oh uh oh yes, they already pulled it up, but we'll put it back.

3:49

Uh thank you.

3:50

A little our clerks are very efficient, sometimes too efficient.

3:53

So all right, so um you can go ahead and sign in on that.

3:57

Uh and with that, I'm gonna turn it over to uh Mayor George.

4:02

Did you want to make some preliminary remarks?

4:03

Yeah, thank you.

4:04

Thank you, uh, Council President.

4:05

Um we appreciate the opportunity to provide some ongoing updates on our efforts to hold first energy accountable and to do everything we can to push for safe, reliable power in Lakewood.

4:18

Uh we appreciate the partnership of City Council on this very important issue.

4:24

I also want to emphasize that we all appreciate the voices of our residents and the people who showed up here today.

4:30

Uh this is an all hands-on-deck effort, and we continue to work together to hold first energy accountable for their failing infrastructure.

4:39

This is a statewide issue that we are being forced to confront here locally.

4:44

We are fighting a multi-billion dollar corporation that rather than put money into the aging infrastructure in Lakewood and across the state, instead put its dollars into bribing the speaker of the House and other public officials.

5:00

Lakewood has been pursuing an aggressive, multifaceted and creative approach to apply energy to up to apply pressure to First Energy.

5:09

Over the past two years, the City of Lakewood has been leading has been the leading municipal actor pushing first energy.

5:16

We're actually getting calls from other municipalities asking for our playbook on this issue.

5:23

With our approach, we've had meaningful upgrades required of First Energy.

5:28

We have gotten PUCO to order First Energy to make significant investments in Lakewood's power infrastructure.

5:35

First Energy is required to install new large transformers at the Athens substation.

5:41

They are required to inspect every pole in line within the city and are required to improve communications as well as install smart meters citywide.

5:51

We also formally intervened in First Energy's reliability case and had PUCO side with the city in denial of those relaxed standards.

6:00

We continue to press things with First Energy and have filed a new complaint to investigate this summer's outages.

6:08

We are demanding financial penalties for First Energy is part of our new complaint, which includes significant direct fines to First Energy, refunds of payments to ratepayers, and other creative options, such as the creation of an escrow system that would withhold all ratepayers' utility payments until the issues in Lakewood are fully resolved.

6:31

But we know we need to keep fighting.

Discussion Breakdown — Share of Meeting
Pending Litigation█████████████████████████████29%
Public Engagement███████████████████████23%
Public Safety███████████████15%
Energy Infrastructure██████████████14%
Engineering And Infrastructure█████████9%
Water And Wastewater Management████4%
Fiscal Sustainability███3%
Procedural██2%
Environmental Protection1%
Summary of Proceedings

Lakewood Committee of the Whole Meeting on First Energy Litigation - July 27, 2026

The Committee of the Whole met on July 27, 2026, at 6:00 p.m. in City Hall Auditorium to discuss the city's ongoing legal and regulatory efforts to hold First Energy accountable for chronic power outages and communication failures. The meeting featured presentations from the Law Department, Mayor George, and the Ohio Consumers Council, followed by extensive council discussion and public testimony. No executive session was held; a future session was planned to discuss litigation strategy.

Consent Calendar

  • The minutes of the June 15, 2026 Committee of the Whole were approved unanimously.

Public Comments & Testimony

  • Nico Rue (1421 Cordova Ave.) expressed gratitude for the city's efforts and suggested exploring state ballot initiatives to increase pressure on First Energy, noting the asymmetry between the company's resources and municipal tools.
  • Karen Pesento (Lake Ave.) recounted being stuck in an elevator for 13 hours during an outage and called for mandatory reimbursement (e.g., $100 per incident or $250 per incident as in New York) and backup generators for senior congregate living facilities.
  • Gary Federley (Leedale) criticized First Energy's credibility, noting they never apologized and provided an absurd five-year transformer lead time; he also reported brownouts damaging appliances.
  • Don Nottage (2159 Morrison) referenced a survey of 297 residents showing 70% replaced spoiled food, 28% reported adverse health effects, and 56% lost communications; he urged continued public engagement and noted a paid First Energy luncheon as inappropriate.

Discussion Items

  • President Kepple opened with a timeline of litigation, including the June 2025 PUCO investigation, the Probable Non-Compliance (PNC) letter, the city's intervention against First Energy's attempt to lower reliability standards (denied June 24, 2026), and the new complaint for July 2026 outages.
  • Mayor George emphasized the city's leading role among Ohio municipalities, highlighting PUCO-ordered upgrades: two new transformers at Athens substation (first delivered June 2026, second due September), pole inspections, smart meters, and communication improvements. She also demanded financial penalties and an escrow system in the new complaint.
  • Law Director Vargo detailed the legal strategy: the PNC found Lakewood's infrastructure was the oldest in First Energy's service area, with some circuits in the worst 8% performing. The city intervened in the reliability standards case, filing evidence of senior elevator rescues and disproving First Energy's claim that tree falls caused most outages (equipment failure and employee error were primary). The PUCO ruling denied First Energy's request. The law department will monitor compliance and consider intervention in the rate case.
  • Ohio Consumers Counsel (Tom Broadbeck) presented on grid modernization charges: from 2017–2019, First Energy collected $457.7 million under the Distribution Modernization Rider (later halted by Ohio Supreme Court), $369.6 million under Grid Mod Phase 1 (2019–2022), and $421 million under Grid Mod Phase 2 (2024– ). Consumers paid an average of $108.54 (DMR) and $146.32 (Grid Mod 1 & 2). Broadbeck urged using the rate case (PUCO Case No. 26-347-EL-AIR) to demand reliability improvements.
  • Councilmember Strebig asked about the number of substations and whether additional failures are expected; Mayor George noted two substations (Athens, Lauderdale) were affected. Law Director Vargo clarified that First Energy is statutorily required to service new developments.
  • Councilmember Bullock echoed the importance of commercial businesses and microgrid solutions; Councilmember Baker raised the option of municipalization under the Ohio Constitution, and Mayor George confirmed initial high-level estimates in the hundreds of millions to $1 billion, but no formal study has been done. Baker expressed willingness to allocate funds for a feasibility study.
  • Councilmember Bixenstine requested a substation coverage map from First Energy and emphasized the human toll.
  • Councilmember Hamilton Steiner asked about restitution; Mayor George confirmed financial penalties and refunds were requested in the new PUCO complaint.

Key Outcomes

  • Council will continue to monitor First Energy's compliance with PUCO orders, including infrastructure and communication improvements.
  • The Law Department will develop a formal intervention strategy in First Energy's pending rate case (Case No. 26-347-EL-AIR) and may pursue additional legal avenues, including exploring municipalization.
  • Future Committee of the Whole meetings will be scheduled, including an invitation for First Energy to appear and discuss their compliance and plans.
  • Residents and businesses were encouraged to file public comments with PUCO on the rate case and to submit complaints directly regarding outages.
  • No executive session was held; council agreed to schedule one after the Law Department has further developed legal strategy and received requested documents from PUCO.

Meeting Transcript

All right. We will call Committee of the Whole to order. So first I will move to approve the minutes of the June 15th Committee of the Whole without the necessity of a reading. Second. Motion's been made and seconded. Discussion. Hearing none. All those in favor? Aye. And that motion passes. We have one item on the docket tonight, which is the communication that I submitted, outlining the timeline of litigation with First Energy, and also setting us up for tonight's discussion with the law department to provide us an overview of those legal matters addressing the First Energy's failure to provide reliable electricity and accurate and timely communication. And then so tonight, as you thank you all for being here, members of the public as well. Tonight you'll hear some of the steps that have already been taken. So those are a little bit complicated. I think sometimes they're almost set up to be intentionally complicated to make it harder for us to hold the utility companies accountable. So we'll be hearing about those as well as asking our law departments some questions about potential next steps. Some of those questions I intend to have as much of the conversation as possible in the public because part of the whole reason for doing this is to help all of us understand and help all of our neighbors understand the legal process that we've taken and what we can do. Some of that we will have to have an executive session to preserve the public interest because it will be with our legal council. So as much as possible though, we'll have in front of in front of all of you. We're also joined tonight by members of the Office of Ohio Consumers Council. So thank you for being here with us, uh JP Blackwood and Tom Broadbeck. Uh we'll be hearing from them after we hear from the law department. And uh I just want to point out before we get started that this is an ongoing effort. Uh it's been over a year since uh Mayor George and I and Rep Raider and Councilman Casey met with First Energy representatives about what steps they were going to be taking. And were it not for the legal action uh that the city has taken, we wouldn't be seeing any progress. And I know that most of us aren't experiencing a lot of progress. Uh today I did hear back from our first energy rep about some of the improvements that have been taken place that they are working on. Um, instead of trust but verify, it's a little bit more in the just verify stages. So uh so but we they are being asked to make these changes ordered to by the Public Utilities Commission of Ohio. Uh and then we also want to be diligent in our duty to making sure that we are following up on them as well. So that's the plan for tonight. We'll uh have the presentation. Council members will be asking questions, I'm sure, uh, of both entities, and then we will uh uh we'll take public comment. So if you haven't already signed in for public comment and you would like to, you may do so any time uh before then. I'll also call for anyone else who would like to make public comment who hasn't yet signed in. Uh oh uh oh yes, they already pulled it up, but we'll put it back. Uh thank you. A little our clerks are very efficient, sometimes too efficient. So all right, so um you can go ahead and sign in on that. Uh and with that, I'm gonna turn it over to uh Mayor George. Did you want to make some preliminary remarks? Yeah, thank you. Thank you, uh, Council President. Um we appreciate the opportunity to provide some ongoing updates on our efforts to hold first energy accountable and to do everything we can to push for safe, reliable power in Lakewood. Uh we appreciate the partnership of City Council on this very important issue. I also want to emphasize that we all appreciate the voices of our residents and the people who showed up here today. Uh this is an all hands-on-deck effort, and we continue to work together to hold first energy accountable for their failing infrastructure. This is a statewide issue that we are being forced to confront here locally. We are fighting a multi-billion dollar corporation that rather than put money into the aging infrastructure in Lakewood and across the state, instead put its dollars into bribing the speaker of the House and other public officials. Lakewood has been pursuing an aggressive, multifaceted and creative approach to apply energy to up to apply pressure to First Energy.

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