Dems cry foul as regulator appears in pro-APS video

The Arizona Corporation Commission continues to be a hotbed of conflict-of-interest complaints. The latest accusations come from two Democrats running for office who are questioning the impartiality of Republican Commissioner Tom Forese, who appears in an online video supporting a controversial solar program.

Forese said his participation in a video supportive of Arizona Public SerJohn

vice’s program does not represent any conflict, and that the complaints are simply partisan politics from candidates trying to win election.

The Solar Partner program at APS is controversial because rooftop-installation companies such as SolarCity Corp. see it as the utility unfairly competing with them for customers. Forese appeared in a video by the group ConservAmerica that debuted July 10 on YouTube. In the video, ConservAmerica supports the APS program as an example of “blue-collar solar.”

ConservAmerica, formerly known as Republicans for Environmental Protection, endorses the APS program because it is a way for low-income utility customers to benefit financially from solar power, which traditionally has been installed in wealthier neighborhoods. People without enough savings to purchase solar panels or strong enough credit to lease it can’t use solar, and neither can most renters.

APS addresses this issue with its program by allowing low-income customers to get solar on their home for free in exchange for a discount from the utility. The company reports installing solar on 1,600 homes through the program. But APS has not won approval from the five Arizona Corporation Commissioners to charge customers for the money it is spending on Solar Partner. That matter is pending before the commission as part of the APS rate case, which will continue through the year and likely be decided in March.

Because Forese is expected to serve in a quasi judicial role deciding the merits of the APS Solar Partner program, Democrats Bill Mundell and Tom Chabin say he has prejudged the issue by appearing in the video. They are asking that he recuse himself from the APS rate-case vote. Mundell and Chabin are among seven men running for three seats on the commission this year.

“It is unbelievable and outrageous behavior,” said Mundell, who served as a Republican commissioner but switched parties and now is running as a Democrat. “I’ve never seen anything like this, to make a video with the vice president of APS, on a matter that is pending before the commission for a vote.”

He said Forese should resign or recuse himself from the APS rate case and other APS matters.

“This commission is utility-friendly and they have no boundaries,” Chabin said. “All other issues before the commission are secondary to whether the commission can fairly and impartially hear utility cases.”

Forese said that simply because he supports expanding solar opportunities to low-income people does not mean he has predetermined whether APS’ spending on the program has been prudent. That will be determined in the rate case. He said Chabin and Mundell’s complaints are “politics,” and that he did not ask the commission’s ethics attorney before participating in the video. That attorney, Chris Kempley, said he saw no issue with the video.

“Commissioner Forese talks in broad terms about his support of expanding the availability of solar generation,” he said. “The video does include a segment where an APS spokesperson provides information about APS’ Solar Partners program, but Commissioner Forese makes no mention of this program . ... I find no issue of prejudgment in what I reviewed.”

Forese already has been the target of criticism from the Democrats and the rooftop-solar industry because when he ran for office in 2014, he and Doug Little benefited from more than $3 million in advertising from independent political nonprofits that don’t disclose their donors. APS is widely believed to have supported the groups and doesn’t deny involvement. Critics say utilities should not get involved in elections to determine who will regulate them.

“Let’s talk about bluecollar solar,” Forese says to open the video, which is a conversation with Paul Walker, executive director of ConservAmerica. Walker also runs an Arizona consulting business and represents entities with business at the Corporation Commission. He said ConservAmerica has never taken money from APS.

The two discuss the disparity among utility customers who can afford to use solar. “That really only makes sense for a group of people that can afford it,” Forese says of the explosion of rooftopsolar leases. “I’m a conservative Republican who still has very deep concerns over how we help people so they have access to the American dream.”

Walker suggests in the video that Arizona’s lowincome customers are “throwing a couple million dollars a month” to wealthier customers who can afford to use solar power. APS Senior Vice President of Public Policy Jeff Guldner appears in the video, though not in the same frame as Forese. Guldner explains the Solar Partner program.

Walker then discusses the financial struggles of SolarCity and SunEdison and suggests people installing solar are being taken advantage of by “Wall Street sharks,” and showing toy sharks chasing toy people meant to depict solar customers.

Walker said the request from Mundell and Chabin was “ridiculous, dishonest and disingenuous.” He said Mundell, during his previous time as a commissioner, often traveled the state to discuss the benefits of the renewable-energy requirements he passed at the commission, similar to what Forese is doing. Walker said ConservAmerica made the video to show other utility regulators around the country the progressive program being used by APS and a similar one at Tucson Electric Power.

“If you care about climate change and you care about social justice, I defy you to find a better approach,” Walker said. “Mundell doesn’t care about social justice and probably doesn’t care about climate change. He cares about being reelected. But if this gets more people to watch the video, then god bless him.”

Mundell said it has nothing to do with climate change or social justice.

“This has to do with corruption and undue influence by APS on the commission,” he said.