The Arizona Republic

FBI investigat­ing APS, commission and ex-regulator

- RYAN RANDAZZO THE REPUBLIC | AZCENTRAL.COM

Federal investigat­ors are questionin­g Arizona Public Service Co., the Arizona Corporatio­n Commission and former Commission­er Gary Pierce, the FBI confirmed Friday. Pierce said two FBI investigat­ors knocked on the door of his home Friday and recorded their conversati­on. They requested Pierce not discuss the nature of their conversati­on, he said. He did, however, say the questionin­g focused on the 2014 election.

“They are trying to take a look themselves at the ’14 elections,” Pierce said of the FBI. “I am going to cooperate fully with them . ... They are talking to other people.”

The FBI confirmed the investigat­ion. “The FBI is currently conducting a long-term investigat­ion related to the financing of certain statewide races in the 2014 election cycle,” Special Agent Matthew Reinsmoen said.

Pierce was serving as one of five state utility regulators at the commission in 2014 as his son, Justin, campaigned unsuccessf­ully for secretary of state.

Critics, including former Commission­er Sandra Kennedy, voiced concerns that APS would contribute to Justin Pierce’s campaign — via independen­t political groups that don’t disclose their donors — in exchange for favorable votes from his father. Kennedy asked that Pierce recluse himself from a vote involving APS and solar.

The non-profit Arizona Free Enterprise Club, which isn’t required to disclose donors, spent more than $500,000 supporting Justin Pierce’s 2014 secretary-of-state run. In a 2014 statement to The Arizona Republic, Gary Pierce said there was no tie between his votes on the commission and his son’s campaign. Pierce termed out that year and now works as a political consultant.

The Arizona Attorney General’s Office has been investigat­ing Pierce and the commission since February 2015. That investigat­ion was the result of allegation­s by Pierce’s former assistant, Antonio Gill, who worked at the commission. Gill sent the Attorney General’s Office a letter in February 2015 that suggested years prior, Pierce hired a friend, Ron Ludders, who was involved with a non-profit “dark money” organizati­on that campaigned against Democrats running for the commission in 2012.

APS’ parent company, Pinnacle West Capital Corp., also has been questioned, though it would not comment on the nature of the inquiry.

“Pinnacle West has been contacted by the U.S. Attorney and will be cooperatin­g fully,” spokesman Jim McDonald said via email Friday afternoon.

The U.S. Attorney’s Office in Arizona referred calls to the FBI.

The Corporatio­n Commission is being questioned as well. “The commission is cooperatin­g to the fullest extent possible,” spokeswoma­n Angie Holdsworth said Friday.

Republic reporter Yvonne Wingett Sanchez contribute­d to this article.

 ??  ?? Gary Pierce
Gary Pierce

Newspapers in English

Newspapers from United States