Nov 19 (Reuters) - The Public Utilities Commission of Ohio on Wednesday ordered FirstEnergy’s FE.N Ohio utilities to pay $250.7 million in penalties and refunds after an investigation linked to a bribery scandal found the energy distributor broke state laws and rules.

Ohio-based FirstEnergy previously admitted paying millions of dollars to state officials to pursue legislation on nuclear subsidies and other policies that would benefit it. In 2021, the company agreed to pay $230 million to settle U.S. government charges in the case.

In two separate orders, the Commission found FirstEnergy’s Ohio utilities - Cleveland Electric Illuminating Company, Ohio Edison and Toledo Edison - violated Ohio law, PUCO regulations and PUCO orders.

The Commission found the utilities failed to follow a 2016 Commission order that allowed them to collect funds solely for grid modernization. Instead, the utilities misused money collected from customers between 2017 and 2019 to subsidize an unregulated generation affiliate, in violation of Ohio law.

"Our hope is the events underlying these proceedings will remain a cautionary lesson of accountability and honesty in utility regulatory matters," PUCO Chair Jenifer French said.

FirstEnergy did not immediately respond to a request for comment.

(Reporting by Sarah Qureshi and Ashitha Shivaprasad; Editing by Nia Williams)

((SarahS.Qureshi@thomsonreuters.com;))