Corporation Commission Majority Quashes Probe into Dark Money

By Howard Fischer Capitol Media Services azdailysun.com August 12, 2016

PHOENIX -- Calling it a "fishing expedition,'' three state utility regulators late Thursday quashed a bid by a fourth for an outside look into whether the panel has been or can be subject to improper outside influences.

The vote came after more than an hour of accusations and arguing, with the majority insisting that Bob Burns was trying to bring disrepute on the Arizona Corporation Commission and throw a shadow on the reputation of Tom Forese and Doug Little, elected in 2014. That race featured $3.2 million in anonymous funds spent on their behalf, with Arizona Public Service, regulated by the commission, refusing to deny it was the source of those dollars.

Burns insisted he wasn't going after anyone but simply wanted someone to look at how the actions of the commission, which regulates investor-owned utilities, could be affected in ways hidden from the public -- and particularly the people who will have to pay the rates.

But Burns conceded he wanted the outside attorney to figure out whether APS was, in fact, the source of those dollars. That angered Little, who chairs the panel.

"There's no evidence of improper behavior,'' Little said.

"That's because of no investigation,'' Burns shot back. "If you don't investigate, you don't know.''

And Burns said the investigator would look at all issues and determine if changes are needed in how the commission operates. Little, however, took the issue personally.

"You've been basically impugning our integrity for a year,'' he told Burns.

"I have not,'' Burns shot back.

Commissioner Bob Stump said it's irrelevant even if APS did help get Little and Forese elected.

He said there's no evidence that any of the votes of either one were affected. And Stump pointed out that the money -- from whatever source -- went to an independent expenditure committee that is legally precluded from coordinating with any candidate.

"I don't know who spent money in 2014,'' Little said.

"Maybe we ought to find out,'' Burns responded.

Little noted he was backed by various business interests. He suggested any of those groups could also have been the source of the dollars.

But Burns said it is APS that has repeatedly refused to deny the cash came from either the utility or Pinnacle West Capital Corp., its parent.

Commissioner Tom Forese said the inquiry is "blatantly political.''

Thursday's move effectively voids a contract that Burns got Jodi Jerich, the commission's executive director, to sign with Scott Hempling. A commission staff attorney told the regulators they are free to override that decision.

Burns had hoped to give Hempling the power to subpoena the records of both APS and Pinnacle West to search for campaign contributions. He remains free to subpoena the APS records on his own; it would take a full commission vote to go after the parent company.

He acknowledged the U.S. Supreme Court has said corporations are free to spend money on political races and that he cannot stop either company from spending its money on whatever it wants. What Burns said the commission can do is force public disclosure so voters know who is trying to influence who gets elected.

That likely won't happen. Both Little and Stump insist the commission has no such authority except as it relates to whether a utility is passing on its political expenses to ratepayers.

Commissioner Andy Tobin had a specific objection to Hempling. He said the attorney has done work for solar interests.