PHOENIX (AP) - An Arizona Corporation commissioner who was rebuffed after asking the state’s largest electric utility to disclose its political spending launched a formal investigation Thursday into the company’s political and charitable spending and lobbying expenses.
Commissioner Bob Burns sent a letter to the top executive at Arizona Public Service Co. notifying him of the investigation. The letter to APS Chairman Bob Brandt directs the company to allow inspection of its books for political spending, lobbying and charitable donations. The investigation expands on his previous request that APS only disclose political spending.
“In the current climate, there is a public perception that APS has used funds earmarked for its costs of service to support various political campaigns,” Burns wrote. “Recently, I have become concerned about the lack of transparency for all of APS’s below-the-line expenditures.”
The utility is evaluating the letter, APS spokesman Jim McDonald said.
APS has been the subject of ongoing speculation that it spent $3.2 million backing the 2014 elections of commissioners Tom Forese and Doug Little. The company won’t confirm or deny that it contributed to groups that backed the candidates.
Brandt late last month rejected Burns’ request that the regulated utility, a subsidiary of Pinnacle West Capital Corp., voluntarily disclose its spending on campaigns.
“Compelled disclosure about political contributions that APS or its affiliates may have made out of shareholder profits would go beyond what is required of all corporations under Arizona campaign finance law, and would impinge on APS’s First Amendment rights,” Brandt wrote to Burns.
Burns said in a letter last month that the alleged campaign contributions make the public look at the commission “with suspicion and mistrust.”
Regulated utilities have historically not engaged in political activities in Arizona. APS’ apparent entry into the sphere only began in recent years.
The five-member commission regulates and approves rates for electricity providers, water companies and other firms that hold monopoly power in the state. It also oversees securities regulation, railroad and pipeline safety and facilitates business incorporation. It has executive, judicial and legislative power over the firms it regulates.
As the regulator of a company granted a utility monopoly, the Corporation Commission can inspect its books to determine if it is properly accounting for money it is receiving from ratepayers.
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