Page 7 - The Noise August 2017

NOISE NEWS BY CINDY COLE
Former regulator Susan Bitter-Smith, who campaigned with Mr. Stump, resigned her seat at the ACC amid allegations of conflicts of interest.
Current regulator Tom Forese, who received campaign contributions from associates of APS in his successful campaign to the ACC, has appeared in APS television commercials and has been a vocal opponent to investigation of the company’s election financials.
Current regulator Doug Little ran a dovetail campaign with Mr. Forese in his successful bid as an Arizona Corporation Commissioner, and was also privvy to the generosity of APS insiders. He has also opposed further inquiry of the utility.
Meanwhile, APS continues to demand rate increases in the cost of electricity for customers, despite questionable “unrelated expenses” like electioneering, and profit margins most unregulated companies would be envious of.
Former regulator, Arizona Corporation Commission Chairman Gary Pierce, was one of APS’ favored candidates. Under investigation by the FBI, he was recently indicted in another instance of impropriety with a utility.
Former regulator Bob
Stump, also an APS favored candidate, quietly did not
seek re-election to the ACC amid revelations of improper communications with a lobbyist during a previous rate increase proposal.
s
lating “ex parte” rules that restrict contact between the ACC and organizations with which
it is doing business.
Mr. Pierce is no stranger to the public eye. He is a former teacher and businessman. He
was a Yuma County supervisor and served in the Arizona House of Representatives from 2001 to 2006. In his last two years there, he was also the majority whip. He was elected to the ACC in 2007 and remained there until 2014, serving as chairman for part of his term. His time at the commission was often fraught with conflict. His stances were frequently con- trary to staff recommendations and public opinion. In 2013, he supported the decision to allow APS to charge a special monthly fee to solar users that was among the first of its kind nationwide. His indictment could prove to be one of the worst scandals the state has ever seen and could have far-reaching implications.
With the federal courts now involved, the decisions under scrutiny will be subject to re- view by the current ACC commissioners. The commissioners voted 5-0 to hire an indepen- dent auditor to review the Johnson Utility rate change decisions.
Mr. Johnson has previously had plenty of run-ins with the law. As a developer, he has paid millions of dollars for violating environmental laws. He was part of a landmark 2007 settlement for $12.1 million for destroying archeological sites and native plants and bull- dozing on state trust and private lands without a permit. Other charges have involved il- legally diverting water, drilling wells without permits, and even sickening a herd of bighorn sheep by allowing his infected domestic goats off his ranch.
Johnson Utilities has been ranked among the worst water companies in Arizona. As re- cent as last December, the Arizona Department of Environmental Quality had to issue a warning regarding high nitrate levels in the utility’s water.
Mr. Johnson’s attorneys recently notifified the ACC that he would step down from the helm of Johnson Utilities to “devote his time to defending himself until he is cleared of the recent charges.”
In spite of accusations of corruption and federal indictments, APS has remained steadfast in its desire to keep secret any previous political meddlings it may or may not have been party to. In March, the company released its 2016 annual report showing they spent $10 million on elections last year. But neither Pinnacle West nor APS has any plans to disclose information about the 2014 election cycle.
In a prepared statement, APS spokesperson Anna Stewart said, “This voluntary report goes beyond our legal requirements to provide additional information about our contribu- tions.” Ms. Stewart also said, “Pinnacle West supports organizations and issues that further our mission of creating a sustainable energy future for Arizona.” She noted that APS and its parent company would be more transparent in the future regarding campaign contribu- tions but that the companies would continue to back candidates favorable to their goals. This could include those who will be charged with regulating the company.
The report published by Pinnacle West lists several political action committees and other entities to which the company gave money to promote its political goals in 2016. One entry that stands out is nearly $4.2 million to the Arizona Coalition for Reliable Electricity. The Citizens Clean Elections Commission reports filed by the coalition show the money was used to support Republican ACC candidates Bob Burns, Andy Tobin and Boyd Dunn in their successful election bids [azcleanelections.gov/CmsItem/File/264].
At this point, it’s hard to say whether the citizens of Arizona will ever know exactly how much money APS contributed to the political campaigns of ACC commissioners whose constitutional job description it is to fairly regulate the utility. According to the ACC’s own website, it is the job of the commission “to balance the customers’ interest in affordable and reliable utility service with the utility’s interest in earning a fair profit.” In the present climate of indictments, controversy and secrecy, it’s hard to doubt whose interests current commis- sioners have foremost in their minds.
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Of the 5 regulators on the Arizona Corporation Commission, Bob Burns has been the sole inquisitor into APS’ electioneering practices, asking for transparency so “Arizonans don’t feel as though their electric bill is helping to pay for approval of another rate increase.”
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