Six years ago, it seemed like the Midwest was well on its way to building the first offshore wind farm in the Great Lakes. Then the project withered on the vine — and a civil lawsuit puts the blame on utility FirstEnergy’s bribery scheme in Ohio.
That corruption scandal is best known for leading to the 2019 passage of House Bill 6, a law that gutted the state’s clean energy standards and forced consumers to pay nearly half a billion dollars in subsidies for uneconomical coal plants.
But the bribes also led to a regulatory decision that effectively killed the Icebreaker wind farm proposed off Cleveland’s shore, claims the lawsuit filed in July by Lake Erie Energy Development Corp. — the nonprofit that spent more than a decade trying to launch the clean energy project.
The group, known as LEEDCo, zeroes in on FirstEnergy’s bribes to Sam Randazzo, who formerly headed both the state’s Power Siting Board and Public Utilities Commission. LEEDCo argues that those payments led to a 2020 ruling that imposed unworkable restrictions on when the Icebreaker project’s turbines could operate. By the time the restrictions were revoked, funding for Icebreaker had collapsed. The nonprofit is suing FirstEnergy for monetary damages that could top $10 million.
Icebreaker “represented a generational opportunity for the region,” said Jay Kelley, managing partner at Elk & Elk and one of the lawyers representing LEEDCo. “It would have positioned Cleveland as a national leader in offshore wind, created a new advanced-manufacturing supply chain, supported jobs, and strengthened the region’s climate-resilience and economic-development goals.”
How Icebreaker got put on ice
The Icebreaker demonstration project called for six turbines to be built approximately 8 miles northwest of Cleveland. Although relatively small, its roughly 20 megawatts of clean electricity would have been enough to power thousands of homes. Just as important to LEEDCo was proving that offshore wind generation was feasible in the freshwater lake. If so, proponents in the public and private sectors hoped to leverage the region’s strengths in engineering, steelmaking, maritime, and other fields to help the sector take off.
“The big dream was to build an industry here,” recalled Lorry Wagner, who served as LEEDCo’s first executive director until he retired in late 2019.
By that time, the organization had spent millions of dollars on offshore wind studies, and it had lined up the developer Fred. Olsen Renewables to build Icebreaker once approvals came through. In 2018, the project cleared the federal government’s environmental review process. LEEDCo was also deep into discussions with several Ohio agencies and had applied for a permit from the Ohio Power Siting Board.
By May 2019, LEEDCo had agreed to various permit conditions supported by the Power Siting Board’s staff, two environmental groups, a trade association, and a carpenters’ union. After a hearing that autumn on the fairness of that settlement, the project’s only remaining hurdle was to get the board’s final approval.
When that ruling finally came in May 2020, the board, led by Randazzo, imposed a whole new condition: Every night from March through December of each year, Icebreaker’s turbines would have to “feather,” or shut down.
“When it came out, everybody was shocked,” Wagner said.
By then, however, Fred. Olsen had withdrawn from the project. According to LEEDCo, that loss of both funding and technical expertise meant it could no longer meet its obligations for a grant from the U.S. Department of Energy. When the Ohio Supreme Court later upheld the permit without the “poison pill” in 2022, LEEDCo still didn’t have new funding. On Dec. 8, 2023, LEEDCo said it was freezing Icebreaker.
What was FirstEnergy’s role?
Just a few days before LEEDCo paused Icebreaker, the federal government indicted Randazzo on criminal bribery, fraud, and conspiracy charges related to HB 6 and other matters. He also faced criminal charges from the state of Ohio and the prospect of losing his law license.