APS Subject Of Two Arizona Republic Stories
Note: AriSEIA encourages members to read the stories themselves and draw their own
conclusions. Here we only attempt to summarize what has been publicly reported.
In a front page story in the Sunday, October 20, 2013 Arizona Republic titled "APS Lobbyist Pitched Plan To Alter Energy Panel," APS admits to hearing a proposal to "fund a $4.3 million campaign using out-of-state non-profit groups to generate “fake controversies” regarding the Arizona Corporation Commission. Those controversies could sway voters and lead them to elect new regulators, the plan suggested, or could influence legislators to add additional seats on the commission." APS CEO Don Brandt denies it had anything to do with soliciting the proposal from Tempe-based Lincoln Strategy Group, but the firm's owner says the "plan was prepared at the utility’s request."
According to the story, the plan had APS create "two non-profit groups that would direct APS donations to generate research that would show the Corporation Commission’s decisions cost ratepayers money and hurt families. The plan called for making the non-profits appear as a grass-roots efforts rather than as well-funded operations directed by industry insiders with clear corporate goals…The plan suggested funneling money through non-profits, which would be difficult to trace. It suggested using “a highly qualified candidate with solid knowledge in public policy and electoral strategy who has pre-established credibility within the community” to lead the Arizona effort."
Following rejection of the plan, APS admits to hiring both of the proposing consultants, one as their chief lobbyist and the other as a consultant.
When reporters suggested the rejected plan was similar to the current effort to undermine the state's net metering rules, APS Vice President of Communications John Hatfield denied it saying, "the only connection was that both plans involve non-profits."
In the second of Sunday's two stories, titled "APS, solar companies clash over credits to customers," APS acknowledged to the Arizona Republic it is funding the out-of-state group 60 Plus and locally based Prosper HQ to support their position on net metering. Prosper HQ was founded by former Arizona Speaker of the House, Kirk Adams.
"John Hatfield, APS vice president of communications, said the utility is contributing money to the non-profits, and potentially other groups, through political consultant Sean Noble and his firm, DC London. “We needed to respond to these ridiculous assertions that we do not support solar,” Hatfield said, adding that APS does not agree with all political positions at 60 Plus and Prosper."
The story did not indicate the amount of money that is being spent on those two groups, but it estimates it is in the range of "hundreds of thousands" of dollars. The effort is being coordinated by the firm DC London, a group that has run into trouble in recent years with voter registration complaints in several states.
Other significant quotes from the story are below:
"Hatfield said APS is not using ratepayer funds to finance its political campaign. Instead, he said the utility is using profits that otherwise would go to stockholders."
“We are in a political battle,” APS spokesman Jim McDonald said. “We didn’t ask for it. But we are not going to lie down and get our heads kicked in. We are just not. We are obligated to fight. It is irresponsible to our customers not to fight back.”
"What the 60 Plus stuff is doing is at least pointing out, gee, (TUSK) is supposed to be for conservative principles, but the biggest supporters (TUSK) has are the Democrats that supported Obama,” McDonald said. “I don’t see any conservative principles at play here."
“What has characterized our approach to the regulatory environment is working in a collaborative and constructive way (with regulators and opposition groups),” Hatfield said. “That was the approach we would have preferred to take on the net-metering issue.”
The Republic's energy reporter, Ryan Randazzo and Robert Anglen, prepared both stories.
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